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Training For Louisiana Garnishment Law Requirements

What Is A Garnishment?

A wage garnishment is any legal or equitable procedure through which some portion of a person's earnings is required to be withheld by an employer for the payment of a debt. The six basic types of garnishments are child support, federal, state, or local levies, creditor garnishments, and student loans, with the largest amount of garnishments being for child support.

Louisiana Garnishment Law Requirements

Louisiana employers that receive a wage garnishment must comply with Louisiana garnishment laws as well as applicable federal requirements. Louisiana generally exempts 75% of an employee's disposable earnings from seizure for ordinary creditor debts, meaning that up to 25% may generally be subject to garnishment, subject to the applicable federal limitations and statutory exceptions.

Louisiana Wage Garnishment Overview

A Louisiana wage garnishment is a legal process through which a creditor may require an employer to withhold part of an employee's earnings to satisfy a judgment. Louisiana wage garnishment procedures are primarily governed by Louisiana Revised Statutes 13:3921 through 13:3925 and the Louisiana Code of Civil Procedure.

Louisiana law provides that when wages, salaries, reported tips, commissions, or other compensation are garnished, a court judgment establishes the portion of the employee's compensation that is exempt and the portion that may be paid toward the judgment.

How Much Can Be Garnished in Louisiana?

For an ordinary creditor garnishment, Louisiana law generally exempts 75% of disposable earnings from seizure. This means that up to 25% of disposable earnings may generally be subject to garnishment.

Louisiana also provides that the exemption from seizure cannot be less than an amount equal to 30 times the federal minimum hourly wage for the applicable pay period.

For ordinary garnishments, payroll should therefore calculate the employee's disposable earnings and apply the applicable Louisiana and federal limitations before determining the amount that may be withheld.

Louisiana Disposable Earnings

Louisiana defines disposable earnings as the portion of an individual's earnings remaining after deductions required by law have been withheld. The statute also addresses certain reasonable deductions made in the usual course of business for retirement, medical insurance, life insurance, and amounts legally owed to the employer when the garnishment is served.

Employers should calculate disposable earnings carefully before applying the garnishment limitation. A garnishment should not simply be calculated as a percentage of gross wages or take-home pay without considering the statutory definition.

Louisiana Wage Garnishment Process

A Louisiana wage garnishment generally begins after a creditor obtains a judgment and initiates garnishment proceedings against the employee's wages.

When an employer receives a Louisiana wage garnishment, payroll should:

• Record the date the garnishment is received
• Review the citation, petition, garnishment interrogatories, notice of seizure, and statement of amounts due
• Verify the employee's identity and employment status
• Determine the employee's earnings and disposable earnings
• Calculate the amount exempt from seizure
• Determine the amount that may be withheld
• Review existing garnishments and support withholding orders
• Complete and return the required garnishment interrogatories
• Withhold wages according to the garnishment judgment
• Remit withheld amounts according to the court's instructions
• Continue withholding while the garnishment remains legally effective
• Maintain records of calculations, withholding, and payments

Louisiana Garnishment Interrogatories

Louisiana garnishment proceedings require the garnishee to respond to garnishment interrogatories. The employer must provide information concerning whether the judgment debtor is employed and whether the employer owes wages or other compensation to the employee.

Louisiana law provides that one writ of garnishment and one set of interrogatories may be sufficient for the proceeding. The court may establish monthly, semimonthly, weekly, or daily payments to the creditor based on the circumstances.

Employers should respond accurately and within the applicable legal deadlines because failure to properly respond can result in additional legal consequences for the garnishee.

Louisiana Garnishment Judgment

Louisiana law requires a court judgment fixing the portion of wages or other compensation that is exempt from seizure and providing for payment from the nonexempt portion.

The garnishment judgment may establish continuing payments until the underlying indebtedness is paid. The court retains jurisdiction to amend or set aside the garnishment judgment when appropriate.

Louisiana Garnishment and Termination of Employment

Louisiana law provides that the effects of a wage garnishment generally cease when the debtor's employment with the garnishee terminates. If the employee is reinstated or reemployed within 180 days after termination, the garnishment may continue according to the statutory requirements.

Employers should review the applicable garnishment documents and current Louisiana law before determining whether a garnishment has terminated because of an employee's separation from employment.

Louisiana Garnishment Exemptions

Louisiana provides exemptions from seizure for certain income and property. For ordinary wage garnishments, 75% of disposable earnings is generally exempt from seizure, subject to the statutory minimum protection and exceptions.

Louisiana law also provides exemptions for certain property, including specified tools and equipment necessary for a person's trade, calling, or profession.

Employees may have additional protections under federal law depending on the type of debt and source of the funds.

Employers should follow the garnishment judgment and applicable court instructions rather than independently deciding whether an employee's income is exempt.

Louisiana Child Support Garnishment

Child support and other support obligations are subject to special Louisiana and federal requirements and are treated differently from ordinary creditor garnishments.

For support obligations, Louisiana generally exempts 50% of disposable earnings when the garnishment is for the support of a child or children. For support of a spouse or former spouse, Louisiana generally exempts 60% of disposable earnings.

When a support order covers both a child and a spouse or former spouse, Louisiana law provides special rules for determining which percentage applies. Employers should follow the specific income withholding order and applicable federal requirements rather than applying the ordinary 75% exemption.

Louisiana Tax Garnishments

Federal and Louisiana tax collection actions may be subject to specialized levy and withholding procedures that differ from ordinary judgment garnishments.

Employers receiving a federal or Louisiana tax levy should follow the instructions provided by the applicable taxing authority rather than automatically applying the ordinary Louisiana wage-garnishment calculation.

Louisiana Bankruptcy Garnishments

Bankruptcy-related wage withholding can be subject to federal bankruptcy law and may operate differently from an ordinary Louisiana judgment garnishment.

Employers receiving a bankruptcy-related wage order should review the order carefully and follow the applicable federal and state requirements.

Multiple Garnishments in Louisiana

Louisiana law provides priority rules when multiple judgments, writs of garnishment, or assignments affect an employee's earnings. A prior judgment, writ of garnishment, or qualifying assignment generally has priority over a subsequent obligation and is satisfied from the nonexempt portion of disposable earnings.

Employers should maintain a complete record of all garnishments and withholding orders affecting an employee and should not assume that multiple orders permit withholding beyond the applicable legal maximum.

Employer Debt and Garnishment in Louisiana

Louisiana law contains specific provisions addressing situations in which an employee owes money directly to the employer. When applicable requirements are met, the employer may be treated as holding a prior garnishment for the employee-employer debt.

However, Louisiana law specifically provides that this provision does not create a preference over enforcement of child support.

Federal Garnishment Limits

Louisiana employers must comply with the federal Consumer Credit Protection Act in addition to Louisiana garnishment law. For ordinary consumer debts, federal law generally limits garnishment to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage.

Different federal limits can apply to child support, tax debts, federal student loans, bankruptcy, and certain other obligations. Payroll should identify the type of debt before calculating the withholding.

Protection From Discharge

Louisiana law provides employment protections for employees whose earnings are subject to garnishment. An employee generally may not be discharged or denied employment because of a voluntary assignment or a single garnishment of earnings.

Louisiana law does provide an exception allowing discharge when an employee's earnings have been subjected to three or more garnishments for unrelated debts within a two-year period, subject to statutory exceptions.

When to Stop a Louisiana Wage Garnishment

Employers should continue withholding while the garnishment judgment remains legally effective and wages remain subject to seizure.

Louisiana law provides that a garnishment judgment may continue through installment payments until the underlying indebtedness is paid. The court may also reopen the case and amend or set aside the garnishment judgment.

Payroll should not stop a garnishment solely because an employee states that the debt has been paid. Appropriate documentation from the court, creditor, or other authorized authority should be obtained before terminating or changing the withholding.

Louisiana Garnishment Recordkeeping

Employers should maintain records of:

• Garnishment citations and orders
• Dates of service
• Garnishment interrogatories and responses
• Court judgments and related documents
• Employee earnings
• Disposable-earnings calculations
• Amounts withheld
• Amounts remitted
• Support withholding orders
• Correspondence concerning the garnishment
• Documentation terminating or modifying the garnishment

Accurate records are particularly important when an employee has multiple garnishments, support obligations, tax levies, or changes to the underlying court order.

Important Louisiana Garnishment Compliance Points

Louisiana wage garnishment compliance requires more than applying a fixed percentage to an employee's paycheck. Payroll must identify the type of obligation, calculate disposable earnings, determine the applicable exemption, follow the garnishment judgment, consider priority and support obligations, respond to garnishment interrogatories, and remit withheld wages according to the applicable instructions.

For an ordinary Louisiana wage garnishment, 75% of disposable earnings is generally exempt from seizure, meaning that up to 25% may generally be subject to garnishment, subject to the 30-times-federal-minimum-wage protection and other applicable federal and state limitations.

Louisiana Garnishment Law Changes

Louisiana garnishment laws and procedures can change through legislation, court decisions, and administrative requirements. Employers should periodically review current Louisiana law and the specific garnishment documents they receive to ensure that payroll calculations and procedures remain compliant.

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