March 24, 2016

It is not uncommon for an employer to receive a Garnishment Summons and Disclosure Form from a creditor of its employee. The Garnishment Summons must include the full name of the debtor and the debtor’s last known mailing address, the remaining unpaid balance of the debt owed, and the date of entry of judgment, pursuant to Minnesota Statute 571.72 subdiv. 2. The Garnishment Summons must also include $15.00 to be paid to the employer.

The Garnishment Summons directs the employer to serve upon the creditor a completed Earnings Garnishment Disclosure Form, within 10 days of the last payday to occur within 70 days after the date of service of the Garnishment Summons. The creditor must provide the employer with the Earnings Garnishment Disclosure Form. If an employer receives a Garnishment Summons that does not include all of the above-described information and documentation the employer should notify the creditor right away.

The Garnishment Summons also directs the employer to retain garnishable earnings, not to exceed 110% of your claim, until the creditor causes a writ of execution to be served upon the employer. Creditors generally cannot garnish more than 25% of an employee’s “disposable wages” (“disposable wages” are the earnings that remain after deducting all withholdings required by law), or any of an employee’s disposable wages if the employee makes less than $290 per week. (These limits do not apply to judgments for child support.) An employer should not turn over the retained garnishable earnings until it receives a writ of execution. It is key for an employer to follow the law when it receives a Garnishment Summons from a creditor of an employee so the employer does not open itself up to potential liability. When in doubt, contact legal counsel for assistance.

This information is general in nature and should not be construed as tax or legal advice.

Associated Attorneys