• Do I still have to comply if my employee’s pay is already garnished?
• Do I have to honor an AWG Order that isn't signed?
• Can I ignore the Order if state law forbids wage garnishment?
• What are the consequences if I fail to comply?
• Can I impose a fee for administering this? If I can, who pays?
• What do I do if the Order says to send payments to someone other than OGSLP?
• What if my employee works part-time and doesn't make enough to be withheld?
• What should I do if my employee filed for protection under bankruptcy?
• What should I do when I get a balance letter?
• Can I stop the garnishment once I've reached the original balance on the order?
• Do I also have to garnish my employee's bonus/commission check?
• Does my employee have to consent to the order or sign the paperwork?
• Has my employee been notified prior to this action?
• My employee can't afford this garnishment. What should I do?
• Can I withhold from an employee who works as an independent contractor?
• Can I stop withholding if my employee makes payment arrangements or claims
the debt has been paid or isn't owed?
A. Yes. You must comply, but the amount you must withhold may be reduced. The law (15 USC § 1673) imposes a maximum on how much can be garnished at any one time. Currently, that maximum is 25 percent of the employee’s disposable pay. So if the current garnishment is taking, for example 20 percent, the AWG Order (assuming it's next in line) is still operable to the extent of the remaining 5 percent of the employee’s disposable pay. On the other hand, if the prior garnishment(s) account for 25 percent, then nothing would have to be withheld on the AWG Order until the prior garnishment(s) are satisfied or expired.
AWG Orders don't expire, although some garnishments do expire before the full amount has been paid. Once a prior garnishment expires or is satisfied, the next garnishment in line usually takes over.
The same federal law that imposes a garnishment maximum also protects a "floor" level of income equal to 30 times the federal minimum wage per week.
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A. Yes. The law (20 USC § 1095a) doesn't require that the Order be signed to be valid and legally binding. However, if you have any question about the Order’s authenticity, please contact our Recoveries department at 800.777.3394 (toll-free) or write to:
OGSLP - AWG Unit
P.O. Box 3010
Oklahoma City, OK 73101-3010
A. No. AWG is authorized by a Federal law (20 USC § 1095a), which specifically preempts state law.
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A. A non-compliant employer will be liable for and subject to suit by OGSLP to recover any amount the employer fails to withhold after receipt of notice of the AWG Order, plus attorneys’ fees, costs and, at the court’s discretion, punitive damages.
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A. The statute and regulations authorizing Administrative Wage Garnishments don't provide for an employer processing fee. This is an issue that you should discuss with your legal advisor.
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A. Send the payments to the payee listed in the Order. Guaranty agencies such as OGSLP are permitted to retain others to aid in the administration of the AWG process including the collection of payments under an Order.
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A. Notify OGSLP in writing that the debtor doesn't earn enough to withhold. You can send the information to:
OGSLP - AWG Unit
P.O. Box 3010
Oklahoma City, OK 73101-3010
A. Notify OGSLP in writing and please include a copy of the 341 Meeting Notice or provide the case number, district, date of filing and the state where the action was filed. While we must cease our collection efforts during an active bankruptcy, please be advised that student loans are non-dischargeable in most cases. You can send the information to:
OGSLP - AWG Unit
P.O. Box 3010
Oklahoma City, OK 73101-3010
A. Update your records. Balance letters will be sent to you periodically to keep you informed of the current outstanding balance.
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A. Don't stop the withholding. Instead, call OGSLP at 800.777.3394 (toll-free). The amount on the order is the balance as of the day the order was prepared and mailed from our office. The order doesn't contain any un-matured interest, which accrues daily.
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A. Yes. You must withhold 10 percent from all monies paid to the employee. Some restrictions do apply to some payments of workers' compensation, disability, etc.
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A. No. The information and forms sent to you are for your use only. There's nothing in the packet that requires the employee’s signature.
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A. Yes. We send a notice to the employee encouraging them to enter into a voluntary repayment agreement before a garnishment is issued.
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A. The employee can call OGSLP at 800.777.3394 (toll-free) to discuss any available options including a Wage Withholding Reduction Request (WWRR). You must start and continue the withholding unless you're notified in writing to reduce the amount or cease withholding.
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A. If your employee is an independent contractor, you must notify OGSLP in writing that they are self-employed. You can send the information to:
OGSLP - AWG Unit
P.O. Box 3010
Oklahoma City, OK 73101-3010
A. No. You must comply with the order until/unless you receive a written Release of Withholding. Federal law (20 USC 1095a(a)(6)) makes you liable for any amount that you should, but don't withhold following receipt of the Order. OGSLP may sue you in state or federal court to recover those sums, together with attorney’s fees, costs and, at the court’s discretion, punitive damages.
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