The word “garnish” comes from Old French and means to “provide, furnish, defend, be cautious guard or provide for.” Today, the ward garnish means an attachment of funds, or, to use the old definition, a mechanism used by creditors so that an employer can provide the creditor with the funds of its debtor, the employee.

     Because of the current financial climate, garnishments are likely to become more common in the workplace. Employers must understand what their obligations are under the law or face penalties for failure to comply. This series of blogs will explore the basics of garnishment, beginning with what garnishment is exactly.

     A garnishment is a judicial proceeding in which a “creditor (or potential creditor) asks the court to order a third party who is indebted to or is bailee for the debtor to turn over to the creditor any of the debtor’s property (such as wages or bank accounts) held by that third party.” Black’s Law Dictionary 689 (7th ed. 1999). A garnishment can also be an equitable procedure through which some person’s earnings is required to be withheld for payment of a debt. Equitable proceedings would include garnishment for IRS or state tax collection levies for unpaid taxes.

      Certain terms are used in a garnishment procedure. They include:

        * Garnishee – the party brought into the lawsuit because the creditor believes garnishee will be obliged to pay the debtor for a debt, in other words, an EMPLOYER
       * Creditor – the person or entity who is seeking to collect money owed by the DEBTOR
       * Debtor – the person who has been ordered to pay money, your EMPLOYEE

     The problem with garnishments is that it puts HR in the middle of an employee’s personal issues. Sometimes these issues are limited to the failure to pay a debt or an adverse ruling. Other times, they are much more personal - tax issues, child support payments or divorce.

     Employers must be prepared to only handle the very personal aspect of garnishment but also make sure its actions are in compliance with both Federal (Title III of the Consumer Credit Protection Act, 15 U.S.C. § 1671 et seq) and Oklahoma law.