Garnishment

What is Garnishment?

Garnishment, also known as wage garnishment, is when money is forcibly taken out of your salary and delivered to another person. This is typically done to settle past-due financial obligations such as unpaid taxes, defaulted student loans, alimony, child support payments, and other monetary punishments.

Why Garnishment Matters

Garnishment plays a key role in an organization’s total compensation strategy. Getting this element right helps attract qualified candidates, retain top performers, and maintain internal pay equity.

HR and payroll teams should regularly benchmark against market data and review calculations to ensure accuracy, fairness, and compliance with applicable wage and hour laws.