Garnishment Law Summaries

Definitions

A "garnishment" is a process to reach and subject money or effects of a defendant in attachment, in a judgment, or in a pending action commenced in the ordinary form in the possession or under the control of a third person (the employer), or debts owing such defendant or liabilities to him on contracts for the delivery of personal property, on contracts for the payment of money that may be discharged by the delivery of personal property or on contracts payable in personal property (Sec. 6-6-370).

Under the Restitution Withholding Act, "income " means wages, salary, tips, commissions, bonuses, any and all money based on remuneration for past, present, or future employment, less deductions required by law (Sec. 15-18-142).

Consumer loans, consumer credit sales, and consumer leases: "Disposable earnings" are earnings remaining after deductions required by law, but do not include periodic payments pursuant to a pension, retirement, or disability program (Sec. 5-19-15).

Coverage

All employers, including government employers, are subject to Alabama garnishment laws (Secs. 6-6-481 --6-6-483).

Procedures

Amounts exempt from or subject to garnishment. --75% of a resident employee's wages, salary or other compensation is exempt from garnishment (Sec. 6-10-7). Additionally, a $1,000 personal exemption is allowed against wages (Walker v. Williams & Bouler Construction Co., 46 Ala. App. 337, 241 So. 2d 896 (1970)).

Consumer loans, consumer credit sales, and consumer leases: The amount subject to garnishment must not exceed the lesser of 25% of disposable earnings for the week or the amount by which an employee's earnings exceed 30 times the current federal minimum wage (Sec. 5-19-15).

Restitution Withholding Act. --A crime restitution withholding order may exceed the maximum amounts prescribed for garnishment proceedings in the state (Sec. 15-18-150).

What the employer must do

An employer served with a garnishment order must withhold as instructed in the order. Once a garnishment is issued, it will be served on the employer, who must appear within 30 days and file an answer, under oath, whether he was indebted to the defendant and whether he will not be indebted in future to him by a contract then existing, whether by a contract then existing he is liable to him for the delivery of personal property or for the payment of money that may be discharged by the delivery of personal property or that is payable in personal property and whether he has in his possession or under his control money or effects belonging to the defendant (Sec. 6-6-393). The employer must answer under oath according to the terms of the garnishment; and, upon filing of the answer, the clerk or register will notify the employee and the creditor, and the creditor may file a motion within 30 days requesting that the employer be examined orally in the presence of the court (Sec. 6-6-450).

No person can answer any process of garnishment on behalf of any corporation unless he makes affidavit that he is the duly authorized agent of the corporation to make such answer and that he has knowledge of the facts as stated therein (Sec. 6-6-451).

Priorities in cases of multiple garnishment. --Under the Restitution Withholding Act, a crime restitution withholding order has priority over any writ or notice of garnishment or process or writ of attachment subsequently served. However, such a withholding order will not have priority over a child support withholding order or notice of child support garnishment (Sec. 15-18-150).

Termination or change of employment. --If an employee's employment is terminated for any reason, the employer must report the termination to the court within 15 days and pay into court all sums withheld from the employee's wages (Sec. 6-10-7).

Restitution Withholding Act. --Employers must notify the court of any change in employment, such as layoff, suspension, discharge, or resignation and the name and address of any new employer, if known (Sec. 15-18-143).

Due date for payment of withheld amounts. --After 30 days from the first retention of any sum from an employee's wages, the employer must begin paying the funds into court as they are withheld, and must continue to do so on a monthly or more frequent basis until the full amount is withheld (Sec. 6-10-7).

Discrimination prohibited. --Discrimination and discharge because of a crime restitution order is prohibited (Sec. 15-18-143).

Deadlines

After 30 days from the first retention of any sum from an employee's wages, the employer must begin paying the funds into court as they are withheld, and must continue to do so on a monthly or more frequent basis until the full amount is withheld (Sec. 6-10-7).

Enforcement

Restitution Withholding Act. --An employer who violates the law may be deemed in contempt of court and may be required to reinstate a terminated employee (Sec. 15-18-143). For failing to withhold or pay over employment income, an employer may be held in contempt of court and may be held liable to the victim for lost restitution (Sec. 15-18-148).

Who to Contact

Employers with questions about a garnishment order should contact the issuer of the order.

Penalties

Restitution Withholding Act. --An employer who violates the law may be deemed in contempt of court and may be required to reinstate a terminated employee (Sec. 15-18-143). For failing to withhold or pay over employment income, an employer may be held in contempt of court and may be held liable to the victim for lost restitution (Sec. 15-18-148).