Wage Garnishment
- Employer Withholding Instructions
Before the Order of Withholdings from Earnings (“Order”), which
accompanies this Handbook, was sent to you, the debtor was sent several notices,
including a “Notice Prior to Wage Withholding.” As required under
Federal law (20 USC 1095a et. seq.), it explained the Oklahoma Guaranteed Student
Loan Program’s intent to send the Order to you and gave the debtor an
opportunity (a) to inspect and copy the Oklahoma Guaranteed Student Loan Program’s
records regarding the debt; (b) to have a hearing concerning the existence
or the amount of the debt and, except in certain instances, the terms of the
repayment schedule; and (c) to avoid withholding by entering into a voluntary
repayment agreement.
In general, you will have received the Order because either (a) the debtor did not request such a hearing within the time required under the law; or (b) a hearing was held and the Hearing Officer determined that the debtor did not have sufficient grounds to prevent garnishment. In some cases, the hearing may have resulted in a modification of the garnishment, in which case the Order sets forth a specific amount or percent to be withheld and whatever other conditions or limitations may apply.
Steps you must take:
1. Check the debtor’s name, address, and social security number contained
in the Order against your records and complete and return the Employer Acknowledgment
of Wage Withholding form within 10 days.
Your liability for withholding begins when you receive the Order, not when
you submit the Acknowledgement.
- If, when you receive the Order, you no longer are obligated to pay the debtor (for example, because the debtor’s employment was involuntarily terminated or the debtor left for another job) promptly complete and submit the Acknowledgement, including the debtor’s last known address and, if known, the name and address of the debtor’s new employer, if any.
- If your obligation to pay the debtor ends after you have received the Order, promptly notify our office via letter or phone. Remember that income earned up to the termination date and any other compensation, such as severance pay, is subject to withholding.
2. Calculate and deduct the amount to be withheld for each pay period, beginning with the first pay period that occurs after you received the Order, using the AWG WITHHOLDING WORKSHEET (provided with the ORDER). NOTE: if the Order specifies the amount to be withheld, or if a Modification of Order has been issued (see “Multiple Withholdings” below), you do not need to use the WORKSHEET.
3. Submit the amount withheld, payable to the Oklahoma Guaranteed Student Loan Program or OGSLP. Mail to the:
Oklahoma Guaranteed Student Loan Program
PO Box 3010
Oklahoma City OK 73101-3010
Be sure each check includes (a) debtor name and Social Security number; (b) employer name and Federal Employer Identification Number; and (c) notation indicating that it is a wage withholding payment. If you are making payments for two or more debtors, you may combine payments as long as the check stub or transmittal sheet properly identifies the amount remitted for each employee.
4. Repeat steps 2 and 3 for each pay period until (a) the Oklahoma Guaranteed Student Loan Program provides you with a Release; or (b) your obligation to pay the debtor ends. Although deductions are to be made at each pay period, remittance need only be made once each month. You are not required to change normal pay and disbursement cycles to comply with the Order.
Multiple Withholdings*:
Limitations:
If the debtor is subject to multiple garnishments during a pay period, Federal law (see 15 USC Section 1673 and FAQ #1, below) may limit your ability to withhold, for that pay period, the full amount called for under the Order. If so, you must inform us, in writing, immediately.
Priorities:
Generally, garnishments must be satisfied in the order in which they are issued to the employer, up to the maximum amount subject to that kind of garnishment order.
- Be sure to check the effective duration of any state law garnishments. Many of them remain in effect only for a limited time; when they lapse, the next-in-line garnishment would take over.
- Federal student loan garnishments (such as this Order) do not have duration limitations; they do not end until (a) the debt is paid in full (NOTE: the total amount the debtor owes is more than the amount indicated in the Order under “Total Amount Currently Due” because, among other things, interest continues to accrue); (b) your obligation to pay the debtor otherwise has ended; (c) a bankruptcy “stay” suspends the garnishment; or (d) the debt is discharged or otherwise resolved.
- Garnishments for child support take precedence over withholding for student loan debts, regardless of when they begin. If you receive a garnishment order for child support after you have received our AWG Order, contact us at 800.777.3394 or fax us at 405.234.4482.
* This information reflects the Oklahoma Guaranteed Student Loan Program’s understanding concerning the general aspects of multiple withholding under AWG and is not intended as legal advice. You may want to consult an attorney with questions regarding your rights and responsibilities.
Your compliance is mandatory:
Federal law [(20 USC 1095a(a)(6)] makes you liable for any amount that you should, but do not, withhold following receipt of the Order. The Oklahoma Guaranteed Student Loan Program may sue you in State or Federal court to recover those sums, together with attorney’s fees, costs and, in the court’s discretion, punitive damages. Under that same law [(20 USC 1095a(a)(8)], you may not discharge, refuse to employ, or take disciplinary action against an individual just because that individual is subject to AWG. That individual may sue you if you take such action and, if he or she prevails, the court will award attorney’s fees and, in its discretion, may order, among other things, reinstatement, punitive damages and back pay.
Termination of the debtor’s employment after you receive the Order does not terminate your liability for amounts you were supposed to have withheld.