Field Operations Handbook — Chapter 16

Chapter 16
WAGE GARNISHMENT PROTECTIONS OF THE CONSUMER CREDIT PROTECTION ACT
Source: FOH Revision 769, published 01/19/2021. Substantive revisions made after 01/19/2021
are noted at the end of
affected provisions below.
Table of Contents
16a GENERAL
16a00 CCPA’s wage garnishment protections generally.
16a01 WHD’s enforcement authority; references to CCPA.
16a02 Coverage.
16a03 Exempt states.
16a04 Meaning of garnishment.
16a05 CCPA is self-executing.
16a06 Tips, gratuities, and service charges.
16a07 Federal employees.
16a08 Employees of states or their political subdivisions.
16a09 Earnings deposited in a bank account.
16a10 Sick and vacation pay.
16a11 Disability payments from employment-based disability plans.
16a12 Health savings account (HSA) c ontributions by employers.
16b GARNISHMENT LIMITS
16b00 Limits on garnishment by type of debt.
16b01 Earnings and disposable earnings.
16b02 Deductions.
16b03 Disposable earnings in partial workweeks.
16b04 Applying garnishment limits to disposable earnings.
16b05 Employer a ttorney fees and consumer debt garnishment limits.
16b06 Creditor attorney fees and consumer debt garnishment limits.
16b07 Attorney fees and family support garnishment limits.
16b08 Service charges permitted under state law.
16b09 Excess garnishment.
16b10 Draws against commission.
16b11 Limits apply separately to each employer.
16b12 No limits beyond family support garnishment limits.
16b13 Limits applied to family support and property settlement agreements.
16b14 Bankruptcy.
16c PROTECTION AGAINST TERMINATION OF EMPLOYMENT
16c00 Employees whose earnings are subject to garnishment.
16c01 Protection against termination applies to all garnishments.
16c02 Administrative garnishments (recovery of non-tax debts owed to the federal
government).
16c03 One indebtedness.

16c04 Protection extends to suspensions, demotions, and transfers.
16c05 Protection does not apply to filing for bankruptcy.
16c06 Legal remedies.
16c07 Prohibition against using garnishment for a single debt as a factor in termination.
16a GENERAL
16a00 CCPA’s wage garnishment protections generally.
Portions of the Consumer Credit Protection Act (CCPA) limit the amount of an individual’s
earnings that may be garnished and protects an employee from being terminated if pay is
garnished for any single debt. WHD’s basic interpretations of the CCPA are found in 29 CFR
part 870.
References:
15 U.S.C. 1671-1677

29 CFR 870
16a01 WHD’s enforcement authority; references to CCPA.
(a) WHD has the authority to enforce only the CCPA’s wage garnishment protections. It has no
other authority with regard to garnishments themselves. Questions over issues other than the
amount being garnished under the CCPA or terminations due to a garnishment should be
referred to the court or agency initiating the withholding action.
(b) For ease of use, “CCPA” as used in this chapter refers only to the wage garnishment portions
of the CCPA.
References:
15 U.S.C. 1673, 1674, 1676

29 CFR 870.1
16a02 Coverage.
(a) Coverage is general. There are no specific exemptions for government employees at the
federal, state, or local levels or their political subdivisions.
(b) The CCPA applies wherever federal and state courts have jurisdiction. “State” includes
Puerto Rico, the District of Columbia, and U.S. territories and possessions.
Reference:
15 U.S.C. 1671
, et. seq.
16a03 Exempt states.
The Secretary of Labor has authority to exempt garnishments issued under state law from the
CCPA’s limits on amounts that may be garnished. The list of exempt states, along with the
terms and conditions of the exemptions, is in 29 CFR 870. Currently, the only state with such
an exemption is Virginia.
References:

15 U.S.C. 1675

29 CFR 870.50–57
16a04 Meaning of garnishment.
(a) Definition of “garnishment.”
A garnishment under the CCPA is “any legal or equitable procedure through which the
earnings of any individual are required to be withheld for payment of any debt.” Generally,
this refers to a court proceeding.
References:
15 U.S.C. 1672(c)

WHD Opinion Letter CCPA-13 (June 15, 1970)
WHD Opinion Letter CCPA-6 (May 18, 1970)
(b) Wage attachments.
Wage attachments are garnishments. A wage attachment for state, local, municipal, or federal
taxes is a legal procedure within the meaning of garnishment under the CCPA. This is the
case even though there may be no actual court proceeding involved in the tax lien or levy.
The CCPA’s protection against termination applies to such attachments for tax debts.
However, the CCPA’s limits on amounts that may be garnished do not apply.
References:
15 U.S.C. 1672–1674

WHD Opinion Letter CCPA-27 (Sept. 14, 1970)
(c) Administrative garnishments.
Administrative garnishments are garnishments for purposes of the CCPA. For private sector
employees, an administrative garnishment is an amount of money withheld from an
employee’s earnings for the payment of a non-tax debt owed the federal government. For
federal employees, these types of garnishments are called salary offsets. As used in this
chapter, the term “administrative garnishment” includes salary offsets. Usually, these
garnishments are instituted for the repayment of loans.
(1) Administrative garnishments are authorized by and subject to the terms of the Debt
Collection Improvement Act (DCIA), 31 U.S.C. 3720D. For federal employees the
terms are set at 5 U.S.C. 5514. These laws generally limit the amount to be garnished
to 15 percent of disposable earnings.
(2) As of December 20, 2018, the Higher Education Act (HEA) authorizes federal
agencies or collection agencies under contract with the federal government to garnish
up to 15 percent of disposable earnings to repay defaulted student loans.
(3) WHD has no enforcement authority over the amount of withholding in an
administrative garnishment if the withholding does not violate the CCPA. Questions
concerning the amount of withholdings should be referred to the agency initiating the
withholding action.

(4) When an individual agrees in writing to allow withholding of an amount greater than
the DCIA or HEA limits, the deductions are wage assignments.
References:
5 U.S.C. 5514

31 U.S.C. 3720D
(d) Wage assignments.
A wage assignment is not a garnishment and is not subject to the CCPA. A wage assignment
is a voluntary transfer of the right to receive wages. It is ordinarily a private transaction
accomplished through a contract and without a court order. For example, an employee may
agree that their employer may turn over some specified amount of their earnings to a creditor
or creditors.
References:
WHD Opinion Letter CCPA-66 (Mar. 16, 1976)

16a05 CCPA is self-executing.
The CCPA protects public rights. Unlike state garnishment laws that are framed as
exemptions designed solely to protect of individual rights, the CCPA prohibits courts from
making, executing, or enforcing orders or processes that violate its terms. Thus, individuals
cannot waive the CCPA’s protections and do not have to raise the CCPA for its protections to
apply.
References:
15 U.S.C. 1673(c)

WHD Opinion Letter CCPA-36 (Oct. 21, 1970)
16a06 Tips, gratuities, and service charges.
(a) For employees who receive tips, the cash wages paid directly by the employer and the
amount of any tip credit claimed by the employer under federal or state law are earnings for
CCPA purposes.
Tips received in excess of the tip credit amount or in excess of the wages
paid directly by the employer (if no tip credit is claimed or allowed) are not earnings for
CCPA purposes.
(b) Payments to employees from service or gratuity charges an employer adds to a customer’s
bill are earnings under the CCPA when paid to the employee.
Scenario: A restaurant employer is under a court order to garnish wages from a server. The
employer charges all customers an additional 15 percent for table services and pays those
amounts to its servers. Those amounts are not tips from customers directly to servers. The
employer must treat the payment as earnings under the CCPA.
References:
15 U.S.C. 1672

WHD Opinion Letter CCPA-43 (Dec. 9, 1970)
16a07 Federal employees.

Federal employees’ wages may be garnished under the CCPA in the same manner and to the
same extent as employees in the private sector.
Reference:
15 U.S.C. 1672

16a08 Employees of states or their political subdivisions.
State or local laws regulate whether the earnings of a city, county, or state employee are
subject to garnishment. To the extent that state or local law permits garnishment, the CCPA
applies. However, WHD has no authority to enforce state or local garnishment laws.
Reference:
15 U.S.C. 1676

16a09 Earnings deposited in a bank account.
The CCPA’s limits on amounts that may be garnished do not apply to an employee’s bank
account composed of earnings already received by the employee. A bank served with a
garnishment order directed at a depositor’s account is not required to determine the
depositor’s protections under the CCPA before following the garnishment order.
Reference:
WHD Opinion Letter CCPA2005-1 (Jul 27, 2005)

16a10 Sick and vacation pay.
Sick and vacation pay are compensation for personal services and are earnings under the
CCPA.
Reference:
WHD Opinion Letter CCPA-62 (Feb. 1, 1973)

16a11 Disability payments from employment-based disability plans.
Disability payments from an employment-based disability plan constitute compensation for
personal services and are earnings under the CCPA.
Reference:
Field Assistance Bulletin No. 2016-3

16a12 Health savings account (HSA) contributions by employers.
Generally, as long as an employer does not determine its HSA contributions on the basis of
the amount or value of individual employees’ services and does not give employees an option
of receiving cash in lieu of an employer’s contribution, the employer’s contributions to an
HSA are not earnings.
Therefore, an employer should not include its HSA contributions when
calculating an employee’s disposable earnings for purposes of applying the CCPA’s
garnishment limits.
References:
26 U.S.C. 223

15 U.S.C. 1672(a)

WHD Opinion Letter CCPA2019-1 (Sept. 10, 2019)
16b GARNISHMENT LIMITS
16b00 Limits on garnishment by type of debt.
The CCPA limits the amount of an individual’s “disposable earnings” available for
garnishment. The limits are different for consumer debts, family support payments (child
support and alimony), debts owed for federal or state taxes, and personal bankruptcy.
Consumer debts include all debts not covered by the other categories.
(a) Consumer debts.
Garnishments for consumer debts must not exceed the lower of:
(1) 25 percent of disposable earnings, or
(2) the amount by which disposable earnings exceed 30 times the federal minimum wage
multiplied by the number of weeks (or part of a week) worked.
This chart shows the current maximum amount of an individual’s disposable earnings that
may be subject to garnishment for consumer debt depending on how the individual is paid,
based on the $7.25 per hour federal minimum wage:
Based on the $7.25
per hour federal
minimum wage, if
payment is:
And the disposable
earnings are:
This amount may be garnished
for a consumer debt:
Weekly
$217.50 or less:
None
More than $217.50 but
less than $290
Amount above $217.50
$290.00 or more
Maximum 25%
Biweekly
$435.00 or less
None
More than $435.00 but
less than $580.00
Amount above $435
$580.00 or more
Maximum 25%
Semimonthly
$471.25 or less
None
More than $471.25 but
less than $628.33
Amount above $471.25
$628.33 or more
Maximum 25%

Based on the $7.25
per hour federal
minimum wage, if
payment is:
And the disposable
earnings are:
This amount may be garnished
for a consumer debt:
Monthly
$942.50 or less
None
More than $942.50 but
less than $1,256.66
Amount above $942.50
$1,256.66 or more
Maximum 25%

References:
15 U.S.C. 1673(a)

29 CFR 870.10
(b) Family support payments.
Garnishments for family support payments (child support and alimony) may not exceed 50
percent of disposable earnings, with two exceptions:
(1) A family support garnishment may be as high as 60 percent of disposable earnings, if
the individual is not supporting a child or spouse other than the subject of the
garnishment.
(2) An additional 5 percent of disposable earnings beyond the applicable 50 or 60
percent maximum may be garnished if payments are more than 12 weeks in arrears.
References:
15 U.S.C. 1673(b)(2)

29 CFR 870.11
(c) Federal or state tax debts or personal bankruptcy.
The CCPA does not limit the amount that may be garnished due to a debt for federal or state
taxes or personal bankruptcy.
Reference:
15 U.S.C. 1673(b)(1)(B)–(C)

16b01 Earnings and disposable earnings.
(a) Earnings are “compensation paid or payable for personal services, whether denominated as
wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a
pension or retirement program.”
(b) Disposable earnings are “that part of the earnings of any individual remaining after the
deduction from those earnings of any amounts required by law to be withheld.”
References:
15 U.S.C. 1672(a)– (b)

16b02 Deductions.
(a) Deductions required by law to be withheld are deductions the employer is required by law to
withhold from gross earnings. These deductions are not included in the total amount of
disposable earnings subject to garnishment limits.
(b) Deductions required by law include:
(1) Federal withholding taxes (FWT), the employee’s share of Social Security (FICA),
and federal employee retirement systems (e.g., Civil Service Retirement System
(CSRS) and Federal Employees Retirement System (FERS)) withholding required by
law. Under U.S. Office of Personnel Management (OPM) regulations, voluntary
Thrift Savings Plan (TSP) deductions are treated the same as deductions required by
law.
(2) Employee’s share of state unemployment insurance taxes (UCI), state employee
retirement systems withholding required by state law, and state and municipal
income taxes.
(c) Some employees do not claim all income tax exemptions to which they are entitled. When
determining an employee’s disposable earnings, WHD uses the amount of tax actually
withheld, as shown on the payroll.
(d) Deductions not required by law to be withheld are deductions the employer makes, in most
cases, at the election of the employee. If a deduction is not required by law, it must be
included in gross earnings when calculating the amount of disposable earnings. Examples of
deductions that are not ordinarily required by law include:
(1) Medical and hospital insurance premiums (these deductions are considered required
by law for federal employees under OPM regulations);
(2) Union dues and initiation fees;
(3) U.S. saving bonds;
(4) Salary advances;
(5) Contributions to religious, eleemosynary, or educational organizations and other
charitable deductions;
(6) Board, lodging, or other facilities;
(7) Purchase of stock in the employer’s corporation;
(8) Wage assignments not effected by a judgment;
(9) Retirement plan contributions (unless required by law, including voluntary TSP
contributions under OPM regulations);
(10) Credit union loan payments;
(11) Uniform rentals;

(12) Allowances for the employer’s own attorney fees as permitted by state law; and
(13) Garnishment service fees charged by the employer as permitted by state law.
(e) This chart illustrates how to exclude required deductions, determine the total amount of an
individual’s disposable earnings, and apply the CCPA’s consumer debt garnishment limits.

Weekly earnings (total gross amount) $500.00
Less: deductions required by law FWT $85.39
FICA $37.40
UCI $5.00 Total -$127.79
Disposable earnings $372.21

Disposable earnings are above $290 and
garnishment order is for a consumer debt.
The disposable earnings may be
garnished up to 25 percent.
$372.21
Multiply: consumer debt garnishment
limit
× 25%
Amount that may be garnished $93.05

Disposable earnings $372.21
Less: amount that may be garnished $93.05
Less: deductions not required by law Union dues $10.00
401(k) $25.00
Charity $5.00 Total -$40.00
Take home pay (net) $239.16

References:
15 U.S.C. 1673(a )
WHD Opinion Letter CCPA-74 (Dec. 1, 1980)
WHD Opinion Letter CCPA-25 (Aug. 25, 1970)

16b03 Disposable earnings in partial workweeks.
(a) The garnishment limits apply in all workweeks, whether the employee has worked a full or
partial workweek.
(b) If a state wage garnishment law differs from the CCPA, the law resulting in the lower amount
being garnished governs.
(c) The consumer debt garnishment limits determine the floor for disposable earnings exempt
from garnishment based on the length of the pay period. This pay period limit is not prorated
or reduced in the case of earnings for partial pay periods or pay periods of less than a week.
For example, withholding for a consumer debt garnishment is permitted only if the
employee’s disposable earnings for the workweek exceed 30 times the federal minimum
wage (currently $217.50, based on the federal minimum wage of $7.25) regardless whether
the individual works a partial or full workweek.
(d) This floor does not apply to garnishments for child support, ali mony, federal or state tax
debts, or personal bankruptcy.
References:
15 U.S.C. 1673(a)–(b)

29 CFR 870.10
16b04 Applying garnishment limits to disposable earnings.
(a) Amount available to garnish depends on pay period.
When a pay period is longer than a week (e.g., biweekly, semi-monthly, monthly), the
disposable earnings that may be garnished do not depend on the earnings or limits in a
particular workweek. They are determined based on the length of the employer’s pay period,
and in the case of a garnishment order that does not apply to future earnings, by the amount
earned up to the point when the employer is legally bound to withhold by that garnishment
order.
Reference:
29 CFR 870.10

(b) Examples: biweekly and semi-monthly pay periods.
For a consumer debt garnishment to take place in a 2-week (biweekly) pay period, disposable
earnings must be greater than $435 for the period. In a biweekly pay period, when disposable
earnings are between $435 and $580, only the amount above $435 is subject to garnishment.
(1) Scenario 1: Employer pays biweekly (every two weeks).
1st workweek 2nd workweek Total
Worked 5 days: $550.00 Worked 1 day: $150.00 $700.00
Less: legally required deductions $100.00

1st workweek 2nd workweek Total
Disposable earnings $600.00
In this scenario, $150 may be garnished for consumer debts. It does not matter that
the employee’s disposable earnings for the second workweek were less than $217.50,
because the employer pays on a biweekly basis. When the biweekly disposable
earnings are $580 or above as in the scenario, up to 25 percent of the disposable
earnings may be garnished for consumer debts.
For an employer to garnish an employee’s pay in a semimonthly pay period,
disposable earnings must be greater than $471.25 for the period.
(2) Scenario 2: Employer pays semi-monthly (two times a month).
The pay period runs from the 1st through the 15th and the 16th through the last day
of the month. During a pay period running from the 1st through the 15th of the
month, the employee earns $800 during the first 7 days and $200 during the last 8
days and has a total of $850 in disposable earnings after $150 in deductions required
by law are taken out. The employee’s disposable earnings in any particular workweek
during the semi-monthly pay period are not material. When the semi-monthly
disposable earnings are $628.33 or above, as in the scenario, up to 25 percent of the
disposable earnings may be garnished for consumer debts.
The garnishment limits apply to the pay period for the individual whose earnings are
garnished. Where there is a hold-back period for wages previously earned, the
limitations apply separately to the earnings for each pay period. Earnings for two or
more pay periods are not lumped together.
(c) “Earnings” generally.
Under the CCPA, earnings means compensation paid or payable for personal services,
whether denominated as wages, salary, commission, bonus, or otherwise, and includes
periodic payments from a pension or retirement program. This generally includes
compensation for personal services. If an employment contract includes furnished facilities,
such as meals and lodging, the dollar value of the furnished facilities is part of the earnings
included when applying the garnishment limits.
(d) Lump-sum payments.
The terms “earnings” and “disposable earnings” in the CCPA are generally confined to
periodic payments of compensation. They do not cover every asset that is traceable in some
way to such compensation. Certain lump-sum payments, such as tax refunds, are neither
periodic payments nor subject to the CCPA’s limitations. That lump-sum payments occur
occasionally or only once, however, does not alone render them outside the scope of
“earnings” under the CCPA. Indeed, bonuses are often infrequent or given only one time, but
the CCPA includes them as earnings. Thus, the compensatory nature of the payment—that is,
whether the payment is for services rendered by the employee—rather than the frequency of
the payment determines whether the payment is “earnings.”

(1) Lump-sum payments considered earnings.
These lump-sum payments are considered earnings for the pay period in which they
are received, and, as such, are subject to the CCPA’s limits:
a. Commissions.
Generally, the employer pays commissions to an employee based on the
employee’s sales. For example, a salesperson receives a payment that is
equal to 20 percent of the total amount of the salesperson’s sales.
b. Discretionary bonuses.
The employer retains sole discretion regarding both the fact of payment and
bonus payment amount. There is no prior contract, agreement, or promise
causing the employee to expect such payments regularly. For example, an
employer pays a year-end bonus based on business performance.
c. Nondiscretionary bonuses.
The employer uses a specific set of criteria to determine bonus payments.
Employees expect to receive the bonus if they meet the criteria. An example
of a nondiscretionary bonus is shift differential pay.
d. Productivity or performance bonuses.
Payments to employees for productive or exemplary performance, for
example, completing work quickly or exceeding production quotas.
e. Profit sharing.
Payments to employees based on the employer’s profits. For example, a chief
executive officer receives, in addition to a salary, a payment equal to five
percent of company profits.
f. Referral bonuses.
The employer pays a bonus to an employee who helps recruit new talent by
recommending a candidate who is ultimately hired.
g. Sign-on bonuses.
The employer pays a bonus to a new employee as an incentive for accepting
the job offer.
h. Moving or relocation incentive payments.
The employer makes a one-time payment to an employee for relocating to a
new area, for example, as a result of the employee accepting a new
management role.

i. Attendance awards.
The employer pays a monetary award to an employee who meets certain
attendance criteria, such as for being punctual over a particular time period.
j. Safety awards.
The employer pays a monetary award recognizing an employee’s safety
performance. For example, a truck driver receives a cash award for several
years of accident-free driving.
k. Cash service awards.
The employer pays a cash award recognizing an employee’s length of
service.
l. Retroactive merit increases.
Payment to an employee for a delayed pay increase. For example, the
employee receives notice of a pay increase in January, but due to a delay, the
employer increases the pay at a later time.
m. Payment for working during a holiday.
The employer pays an employee who works during a holiday his or her
regular wages or a higher wage rate for foregoing the holiday lump-sum
payment for the period.
n. Workers’ compensation wage replacement payments.
The employee is paid his or her wages when missing work for a job-related
injury.
o. Termination pay.
Payment of last wages, as well as any outstanding benefits, such as accrued
vacation leave.
p. Severance pay.
Payment to an employee when the employer terminates the employment
other than for cause. This may be in addition to termination pay. For
example, the employee may receive a payment worth 12 weeks of wages for
being employed a total of 12 years.
q. Back and front pay resulting from insurance settlements.
Payments of unpaid or future wages to employees resulting from work-
related insurance settlements, such as for resolving an allegation of wrongful
termination or a claim involving unpaid wages.
(2) Lump-sum payments that are not earnings.

These lump-sum payments are not earnings under the CCPA and are not subject to
the garnishment limits on disposable earnings:
a. Workers’ compensation medical benefits payments.
The employee is reimbursed for medical expenses incurred as a result of a
job-related injury.
b. Compensatory or punitive damages resulting from insurance settlements.
Payments not for wages earned or future wages resulting from work-related
insurance settlements, such as for resolving an allegation of wrongful
termination or a claim involving unpaid wages.
c. Buybacks of company shares.
A buyback occurs when a company repurchases its shares to reduce the
number of company shares in the open market or as a flexible way of
returning money to shareholders relative to dividends. For employees with
stock options, the employees receive the proceeds via paycheck, direct
deposit, payroll card, etc.
References:
15 U.S.C. 1672(a)– (b)

WHD Non-Administrator Opinion Letter CCPA2018-1NA (April 12, 2018)
Kokoszka v. Belford, 417 U.S. 642 (1974)
16b05 Employer attorney fees and consumer debt garnishment limits.
An employer’s withholding of its own attorney fees from an individual’s earnings as allowed
under state law is not a deduction required by law. The withholding is not deducted from
gross earnings and should be included in the individual’s total amount of disposable earnings
subject to the garnishment limits. Further, such deductions and deductions for service charges
described in FOH 16b08 below may not reduce the individual’s earnings below the minimum
wage or overtime pay required by the FLSA.
References:
WHD Opinion Letter CCPA-33 (Oct. 12, 1970)

16b06 Creditor attorney fees and consumer debt garnishment limits.
A creditor’s attorney fees may be collected through a wage garnishment order when allowed
by state law. They are part of the debt being collected, and the CCPA’s limits apply to the
garnishment.
Reference:
WHD Opinion Letter CCPA-36 (Oct. 21, 1970)

16b07 Attorney fees and family support garnishment limits.

(a) An award of attorney fees in family support cases constitutes part of the support order. If a
court orders garnishment of one spouse’s earnings to collect the attorney fees incurred by the
other spouse during a support case, the family support garnishment limits (that is, 50 to 65
percent of disposable earnings) apply.
(b) In domestic relations cases, a garnishment order might be for family support payments and
subject to the family support garnishment limits (that is, the 50 to 65 percent limit), or it
might be for a property settlement and subject to the consumer debt garnishment limits (that
is, the 25 percent limit).
16b08 Service charges permitted under state law.
State law may permit an employer to charge service fees for deductions. These charges are
not deductions required by law when withheld from an employee’s earnings and are included
in an individual’s disposable earnings subject to the garnishment limits.
16b09 Excess garnishment.
When an employer, in accordance with a garnishment order, withholds amounts from an
employee’s earnings in excess of the amounts allowed by the CCPA, the excess withholding
amounts might result in violations of the FLSA’s minimum wage and overtime pay
requirements. Amounts withheld from an employee’s pay in excess of the amounts allowed
by the CCPA are not paid wages under the FLSA. This is true even if the excess withholdings
that result in the violations are for the employee’s benefit and are paid to a third person, and
the employer derives no profit or benefit from the transaction.
References:
29 CFR 531.39

WHD Opinion Letter CCPA-57 (July 12, 1971)
16b10 Draws against commission.
Draws against commission are earnings and, therefore, subject to the garnishment limits in
the same manner as other forms of compensation.
Scenario: An employer has received a consumer debt garnishment based on the debt of an
employee. During an 8-week period, the employee has disposable earnings of $200 per week
in the form of a draw, or advance, against commission earnings. At the end of the 8-week
period, the employee receives an additional $6,000 in disposable earnings, settling the
remainder of the commissions for the eight-week earning period.
(1) During the eight-week period, the employer may not withhold any amount from the
employee’s pay. Only disposable earnings in excess of $217.50 per week are subject
to consumer debt garnishment, and the employee’s earnings are only $200 per week.
(2) At the end of the 8-week period, the employer may garnish up to 25 percent of the
$6,000 commission-settlement payment. The disposable earnings from the additional
payment exceed $217.50. However, the weekly $200 disposable earnings from the
employee’s weekly draw against commissions are not included or added to the total
$6,000 in disposable earnings subject to the garnishment limits.

Reference:
WHD Opinion Letter CCPA-28 (Sept. 23, 1970)

16b11 Limits apply separately to each employer.
(a) When an individual works for more than one employer that has received a garnishment order
in the same pay period, the CCPA garnishment limits are separately applied to each
employer.
(b) For the garnishments to be treated separately, each employment must be separate and
distinct—that is, the employers must be completely disassociated and act independently of
each other.
Scenario: An employee works for two different employers who each pay weekly. The
employee receives $300 in disposable earnings ($150 from each employer) during a week.
(1) The employee’s wages are not subject to garnishment for a consumer debt even
though the total disposable earnings for the week are $300 because the employee’s
disposable earnings from each employer are less than the minimum weekly amount
subject to garnishment ($217.50).
(2) Each employer that has received a family support garnishment order for the
employee would separately garnish from its disposable earnings due the employee
subject to the family support garnishment limits.
Reference:
15 U.S.C. 1673(a)– (b)

16b12 No garnishments beyond family support garnishment limits.
Family support garnishments are separate from consumer debts and subject to different limits
on amounts that may be garnished. Once the applicable family support garnishment limit is
reached, no other garnishment may be made under the CCPA, unless it is subject to some
further exception (e.g., garnishments owed due to personal bankruptcy or federal or state
taxes).
Scenario: An employer, in accordance with a garnishment order for support payments,
withholds $90 per week from the wages of an employee who has disposable earnings of $290
per week. The employer is then served a garnishment order for the collection of consumer
debt.
(1) The $90 weekly garnishment for support payments is allowed because the amount is
less than the family support garnishment limit of 50 to 65 percent of the individual’s
disposable earnings.
(2) No consumer debt garnishment may be made because the amount already garnished
($90 weekly) is more than the amount that may be withheld under the consumer debt
garnishment limits—in this scenario, a maximum of $72.50 per week (25 percent of
$290).
References:

15 U.S.C. 1673

29 CFR 870.11
WHD Opinion Letter CCPA-10 (June 10, 1970)
16b13 Limits applied to family support and property settlement agreements.
The family support garnishment limits apply only to orders for alimony, support, or
maintenance. A court order for specific performance of an agreement that is substantially a
property settlement agreement is not “for the support of any person,” and a garnishment
resulting from such an order would be, instead, subject to the consumer debt garnishment
limits.
References:
15 U.S.C. 1673(b)(1)– (2)

29 CFR 870.11
16b14 Bankruptcy.
(a) The chapter of the Bankruptcy Act under which the bankruptcy is filed determines if the
CCPA’s limitations apply to garnishment orders related to the bankruptcy. The CCPA does
not limit garnishment orders of courts acting under Chapter 13 of the Bankruptcy Act, which
contains post-bankruptcy consumer protections and remedies separate from the CCPA.
(b) The CCPA is designed to furnish such protections pre-bankruptcy, in the hope of preventing
personal bankruptcy. The CCPA limitations do apply to garnishment orders related to other
chapters of the Bankruptcy Act.
References:
15 U.S.C. 1673(b)(1)(B)

29 CFR 870.11
Kokoszka v. Belford, 417 US 642 (1974)
16c PROTECTION AGAINST TERMINATION OF EMPLOYMENT
16c00 Employees whose earnings are subject to garnishment.
(a) The CCPA prohibits discharging an employee because the employee’s earnings were subject
to garnishment for any one indebtedness. Earnings are subject to garnishment when the
employer is legally bound to withhold from the employee’s earnings to satisfy a garnishment
order.
(b) If a garnishment order for one debt results in a garnishment to the limits of the CCPA, the
employer may not fire the employee related to the garnishment order until the employer is
legally bound to withhold for the garnishment of a second debt. In such a case, there is no
garnishment for a second debt until the second garnishment takes effect. Although the second
garnishment order makes the employer aware of the second debt, the employee’s pay is being
garnished for only one debt—until the employer is able to begin to fulfill the second
garnishment order.
References:
15 U.S.C. 1674

WHD Opinion Letter CCPA-2 3 (Aug. 12, 1970)

WHD Opinion Letter CCPA-26 (Sept. 4, 1970)
WHD Opinion Letter CCPA-5 (Apr. 28, 1970)
16c01 Protection against termination applies to all garnishments.
The CCPA’s protection against termination applies to all types of garnishments, even when
the garnishment is not subject to any of the CCPA’s garnishment limits. For example, if a tax
debt results in the garnishment of earnings and there are no previous garnishments,
discharging the employee for the garnishment would violate the CCPA—even though no
garnishment limits apply to the recovery of state or federal taxes.
References:
15 U.S.C. 1674(a)

WHD Opinion Letter CCPA-18 (July 9, 1970)
WHD Opinion Letter CCPA-5 (Apr. 28, 1970)
16c02 Administrative garnishments (recovery of non-tax debts owed to the federal
government).
(a) Discharging an employee because of a single administrative garnishment violates the CCPA.
However, a discharge based on an administrative garnishment in conjunction with another
garnishment for a separate debt does not violate the CCPA.
(b) The DCIA and HEA (see FOH 16a04(c)) prohibit employers from terminating, refusing to
employ, or taking disciplinary action against an individual based on an administrative
garnishment. However, WHD has no authority to enforce either of those laws; questions
about them should be referred to the agency initiating the garnishment.
References:
5 U.S.C. 5514

31 U.S.C. 3720D
WHD Opinion Letter CCPA-18 (July 9, 1970)
WHD Opinion Letter CCPA-5 (Apr. 28, 1970)
16c03 One indebtedness.
(a) Meaning.
One indebtedness refers to a single debt, regardless of the number of levies made or the
number of separate garnishment proceedings instituted in connection with that debt. In cases
of garnishment after a judgment, WHD construes the judgment itself as the debt. Such a debt
could represent one or more claims of a single creditor or the claims of several creditors who
joined in the proceeding that resulted in the judgment. The protection against discharge is
renewed with each new employment because the new employer has not previously been
subject to a garnishment order with respect to that employee.
(b) One indebtedness distinguished from garnishment proceedings.
(1) There is a distinction between a single debt and the garnishment proceeding brought
to collect it. After a garnishment proceeding for one debt becomes effective, the

CCPA does not prohibit discharge if another garnishment arises from a second debt
and that second garnishment takes effect. These multiple garnishments need not be
from different creditors; they may be from the same creditor as long as they involve
separate debts. Whether there is more than one debt depends on all of the facts in
each particular case. Ordinarily, a separate debt may be identified as the full amount
of the debt represented by a single judgment.
(2) The distinction between a single debt and the garnishment proceedings brought to
collect it is important in states that allow garnishment only of (1) wages earned
before the garnishment order was served or (2) future wages but subject to a time
limitation. In such states, the judgment creditor may secure a number of garnishment
orders to collect the full amount of the single debt represented by a judgment. An
employer may not discharge an employee due to such multiple garnishments.
(c) Terminations following garnishments for second debt.
An employee terminated after a garnishment for a second debt that occurred long after the
first may have been discharged solely because of the garnishment for the second debt. Where
more than a year has passed between garnishments for separate debts, WHD will scrutinize a
discharge from employment following the latest garnishment. Whether a termination violates
the CCPA depends on all the facts and circumstances.
References:
15 U.S.C. 1674(a)

WHD Opinion Letter CCPA-9 (June 5, 1970)
WHD Opinion Letter CCPA-11 (June 12, 1970)
WHD Opinion Letter CCPA-26 (Sept. 4, 1970)
WHD Opinion Letter CCPA-33 (Oct. 12, 1970)
WHD Opinion Letter CCPA-63 (March 30, 1973)
16c04 Protection extends to suspensions, demotions, and transfers.
(a) The CCPA’s protection against discharge includes protection against adverse actions that
interrupt employment to the degree that a prudent employee would look for another job. A
long suspension is equivalent to a termination of employment. For example, an employer
might violate the CCPA if, following subsequent garnishments on the same indebtedness, it
disciplines an employee through a series of gradually increased suspensions of several days’
duration. Suspensions of as few as 5 days may constitute a violation.
(b) A suspension for an indefinite period or for so long that the employee’s return to duty is
unlikely might be equivalent to a termination. A suspension is not a violation if the employee
can obtain the funds necessary to satisfy the garnishment or can otherwise secure a release
from the garnishment. However, a suspension may be a prohibited discharge if the employee
is unable to secure a release or obtain funds to satisfy the garnishment and is no longer being
paid wages to apply against the debt.
(c) A demotion or transfer based on a single garnishment, whether wholly or in part, is a
constructive discharge that violates the CCPA. A reasonable interpretation of the effect of
transferring a person to a position paying less money is that of a termination.
References:

15 U.S.C. 1674

WHD Opinion Letter CCPA-63 (Mar. 30, 1973)
WHD Opinion Letter CCPA-32 (Oct. 8, 1970)
16c05 Protection does not apply to filing for bankruptcy.
The CCPA does not prohibit an employer from discharging an employee for filing for
bankruptcy. Section 525 of the Bankruptcy Act contains similar protections, but WHD has no
authority to enforce the Bankruptcy Act.
References:
15 U.S.C. 1674

11 U.S.C. 525
16c06 Legal remedies.
(a) The remedy for an unlawful discharge is to eliminate the adverse effects of the unlawful
discharge, which may include restoring the employee to the pre-discharge position and
requiring restitution of lost wages and benefits.
(b) If violations cannot be resolved through informal means, DOL may sue to restrain violators
and remedy violations. Employers who willfully violate the CCPA’s prohibition against
termination may be criminally prosecuted and fined, imprisoned for up to one year, or both.
(c) The CCPA does not set a deadline for filing a lawsuit alleging unlawful discharge.
References:
15 U.S.C. 1674
, 1676
16c07 Prohibition against using garnishment for a single debt as a factor in termination.
The CCPA’s protection against termination may be violated even if garnishment for a single
debt is not the only factor in an employee’s discharge. Only where garnishment for a single
debt plays no real part in the termination is it beyond the CCPA’s protections.
References:
15 U.S.C. 1674