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Training For Maryland 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.

About Maryland Garnishment Laws

Maryland permits wage garnishment for certain debts after a creditor obtains a judgment and follows the required court procedures. Maryland employers that receive a valid writ of garnishment of wages must review the order, determine the employee's garnishable wages, complete the required answer, withhold the appropriate amount, and remit the withheld funds as directed.

Maryland's general wage-garnishment rules are governed primarily by Maryland Commercial Law Article 15-601 through 15-606 and Maryland Rule 3-646. Maryland also has separate procedures for child support and other legally authorized income withholding.

For ordinary judgment garnishments, Maryland generally limits the amount that may be withheld from an employee's wages to 25% of disposable earnings per pay period, subject to applicable federal and state exemptions. Maryland Courts also state that employees earning minimum wage or near minimum wage must be left with an amount equal to 30 times the Maryland minimum hourly wage.

At A Glance

• Ordinary consumer debt: Wage garnishment is permitted after a judgment and proper writ of garnishment
• Maximum percentage: Generally 25% of disposable wages per pay period for ordinary judgment garnishments
• Low-wage protection: Employees must generally be left with an amount equal to 30 times the Maryland minimum hourly wage
• Child support: Subject to separate state and federal income-withholding rules
• Employer answer deadline: 30 days after service of the writ for an ordinary wage garnishment
• Administrative fee: No general employer processing fee for ordinary wage garnishments; specific fees may apply to child-support withholding
• Child-support processing fee: Employer may deduct and retain $2 for each deduction under a qualifying Maryland earnings withholding order or notice
• Priority: Child-support income withholding has priority over other liens or legal process, subject to federal law
• Ordinary garnishment form: Writ of Garnishment of Wages and accompanying answer
• Maryland wage-garnishment rule: Maryland Rule 3-646
• Primary statutes: Maryland Commercial Law Article §§ 15-601 through 15-606
• Payment deadline: Amounts withheld under an ordinary wage garnishment generally must be sent within 15 days after the close of the last pay period of the employee each month

Maryland Wage Garnishment Laws

What Is Wage Garnishment in Maryland?

Wage garnishment is a legal process through which an employer is required to withhold part of an employee's earnings and send the money to a judgment creditor or other authorized recipient.

In Maryland, an ordinary wage garnishment generally begins after a creditor obtains a judgment and requests a writ of garnishment from the court. The writ is served on the employer, which is known as the garnishee.

Maryland Rule 3-646 requires the garnishee to answer the writ within 30 days after service and to state whether the judgment debtor is an employee, the employee's rate of pay, and whether there are prior liens against the wages.

Can Creditors Garnish Wages in Maryland?

Yes. Maryland permits creditors with qualifying judgments to garnish wages through the procedures established by Maryland law and court rules.

A creditor generally must obtain a judgment and then request a writ of garnishment. The employer cannot simply begin withholding wages based on an informal demand from a creditor.

Can a Judgment Creditor Garnish Wages in Maryland?

Yes. Once a judgment creditor obtains a valid writ of garnishment of wages and properly serves the employer, the employer must comply with the writ unless a valid defense, objection, modification, release, or other court order applies.

The Maryland Courts explain that a creditor can request that an employer withhold part of an employee's wages after obtaining a judgment.

Can Credit Card Companies Garnish Wages in Maryland?

Yes. A credit card company or debt buyer that obtains a valid judgment may generally pursue wage garnishment through Maryland's judgment-enforcement procedures.

The creditor must follow the required court process before the employer can be required to withhold the employee's wages.

Can Medical Bills Be Garnished From Wages in Maryland?

Yes. An unpaid medical debt can potentially result in wage garnishment if the creditor obtains a judgment and follows Maryland's garnishment procedures.

Employers should focus on whether the writ is valid and properly served rather than attempting to determine whether the underlying debt is legitimate.

Maryland Garnishment Limits

What Is the Maximum Wage Garnishment Percentage in Maryland?

For ordinary judgment garnishments, Maryland generally limits the amount that may be garnished to 25% of the employee's wages per pay period.

Maryland Courts state that a creditor may not garnish more than 25% of an individual's wages per pay period. Additional protections apply to employees earning minimum wage or near minimum wage.

What Is the Maryland Low-Wage Garnishment Protection?

For individuals earning minimum wage or near minimum wage, Maryland provides an additional protection requiring the employee to be left with an amount equal to 30 times the Maryland minimum hourly wage.

Payroll should therefore evaluate both the percentage limitation and the applicable minimum-wage protection when calculating an ordinary Maryland wage garnishment.

What Is the Child Support Garnishment Limit in Maryland?

Child-support withholding is governed by separate Maryland and federal requirements. The applicable maximum is generally determined under the federal Consumer Credit Protection Act and the specific income-withholding order.

Depending on the employee's circumstances and whether the support obligation is more than 12 weeks delinquent, federal law generally permits withholding of up to 50%, 55%, 60%, or 65% of disposable earnings.

Payroll should use the withholding amount stated in the income-withholding order and apply the applicable federal limits rather than using the ordinary 25% Maryland judgment-garnishment limit.

What Is the Federal Student Loan Garnishment Limit in Maryland?

Federal law permits administrative wage garnishment for qualifying federal student-loan debt. The general federal limit is up to 15% of disposable pay, subject to applicable federal restrictions.

Maryland employers receiving a federal student-loan administrative wage-garnishment order should follow the federal order and applicable federal procedures.

What Is the Federal Tax Levy Limit in Maryland?

Federal tax levies are governed by federal law rather than Maryland's ordinary judgment-garnishment percentage.

When an employer receives an IRS levy, payroll should follow the federal levy instructions and applicable federal exemptions.

Maryland Employer Garnishment Requirements

What Should a Maryland Employer Do After Receiving a Garnishment?

An employer should promptly review the writ of garnishment and verify the employee information, issuing court, case number, service date, withholding instructions, payment instructions, answer deadline, and any stated exemptions or limitations.

The employer should then determine the employee's applicable disposable earnings and calculate the amount that may legally be withheld.

Maryland's wage-garnishment form specifically directs the employer to state whether the debtor is employed, the rate of pay, and whether prior liens exist against wages.

When Must a Maryland Employer Answer a Wage Garnishment?

A Maryland employer generally must file its answer within 30 days after service of the writ of garnishment.

The Maryland Courts' wage-garnishment instructions state that the employer must complete the answer and return copies to the court, judgment creditor, and judgment debtor within 30 days of service.

Failure to file a timely answer can expose the garnishee to a motion for contempt and potential attorney's fees and costs.

When Must a Maryland Employer Send Garnished Wages?

Under Maryland's ordinary wage-garnishment procedures, the employer is directed to send the amount withheld to the judgment creditor or the creditor's attorney within 15 days after the close of the last pay period of the employee each month.

If the employee or employer asserts a defense, the writ may direct the employer to send withheld wages to the court instead.

What Happens If an Employer Fails to Answer?

If a Maryland employer fails to file a timely answer, the judgment creditor may seek an order requiring the employer to show cause why it should not be held in contempt.

The employer may also become responsible for reasonable attorney's fees and costs in appropriate circumstances.

Maryland Garnishment Forms

What Form Does a Maryland Employer Use?

The principal document for an ordinary Maryland wage garnishment is the Writ of Garnishment of Wages, accompanied by the garnishee's answer.

The Maryland Judiciary identifies the wage-garnishment form as DC-CV-065, Writ of Garnishment of Wages. The form contains instructions for the garnishee/employer and provides the employer's answer section.

Child-support cases use separate income-withholding documents and procedures.

What Information Does the Maryland Garnishment Answer Require?

The employer's answer generally addresses whether the employee works for the employer, the employee's rate of pay, and whether there are any prior liens against wages.

The garnishee may also assert defenses available to the employer or the judgment debtor when appropriate.

What Should Employers Review on a Maryland Garnishment?

• Employee name
• Employee identifying information
• Case number
• Issuing court
• Judgment creditor
• Judgment debtor
• Date the writ was served
• Effective date
• Amount of the judgment
• Applicable withholding limitation
• Employee's disposable earnings
• Existing wage liens
• Payment instructions
• Employer answer deadline
• Administrative-fee authorization, if applicable
• Release or termination instructions

Maryland Garnishment Administrative Fees and Cost Recovery

Can a Maryland Employer Charge a Garnishment Processing Fee?

There is no general statutory employer processing fee for an ordinary Maryland judgment wage garnishment. Employers should not automatically deduct a garnishment-processing fee from an employee's wages.

Maryland does, however, specifically authorize an employer to deduct and retain a $2 fee for each deduction made under a qualifying child-support earnings withholding order or notice.

Can an Employer Charge a Fee for Child Support Withholding?

Yes. Maryland Family Law § 10-128 provides that an employer may deduct and retain an additional $2 for each deduction made under an earnings withholding order or earnings withholding notice.

The fee applies to qualifying child-support income withholding and should not be automatically applied to ordinary judgment garnishments.

Can an Employer Recover Ordinary Garnishment Processing Costs?

Employers should not assume that general payroll processing costs can be recovered from an employee through a garnishment deduction.

Maryland law generally restricts deductions from wages unless the deduction is ordered by a court, expressly authorized by the employee in writing, allowed by the Commissioner, or otherwise authorized by law or regulation.

Maryland Garnishment Priority Rules

Which Garnishment Has Priority in Maryland?

Priority depends on the type of garnishment and the applicable state and federal law.

Maryland's child-support income-withholding statute provides that an earnings withholding order or notice has priority over other liens or legal process, subject to federal law.

Ordinary judgment garnishments must therefore be coordinated with any higher-priority withholding orders that apply to the employee.

What Happens When an Employee Has Multiple Garnishments?

Employers should identify every active withholding order and determine the applicable priority before calculating the amount available for each order.

Payroll should not simply process multiple garnishments in the order in which they arrive. Child support and other legally prioritized obligations may take precedence.

Maryland Garnishment Exemptions

Are Wages Protected From Garnishment in Maryland?

Maryland permits wage garnishment, but employees receive statutory limitations and exemptions that restrict the amount a creditor may collect.

For ordinary judgment garnishments, the general maximum is 25% of disposable wages per pay period, together with the applicable low-wage protection.

Can an Employee Contest a Maryland Wage Garnishment?

Yes. Maryland's garnishment procedure permits the judgment debtor to assert defenses or objections to the garnishment.

The Maryland Courts state that an employee may contest a wage garnishment by filing the appropriate motion. Employers should follow the instructions in the writ if the employee or employer asserts a defense.

Maryland Garnishment Compliance Checklist

Payroll professionals can use the following checklist when processing a Maryland wage garnishment:

• Confirm that the writ was properly served
• Verify the employee named in the writ
• Identify the issuing court
• Review the judgment creditor and judgment debtor
• Determine the type of garnishment
• Review the date of service
• Calendar the 30-day employer answer deadline
• Review the employee's pay rate
• Calculate disposable earnings
• Apply the 25% ordinary garnishment limitation when applicable
• Apply the Maryland low-wage protection when applicable
• Check for existing wage liens and higher-priority withholding orders
• Determine whether child-support or another federally protected withholding applies
• Complete the Maryland garnishee answer
• Send copies to the required parties
• Begin withholding according to the writ
• Remit withheld wages according to the required schedule
• Do not deduct an unauthorized administrative fee
• Maintain garnishment records
• Monitor for amended orders, releases, or satisfaction of the judgment

Common Garnishment Errors In Maryland To Avoid

Exceeding the 25% Wage Garnishment Limit

For an ordinary judgment garnishment, Maryland generally limits withholding to 25% of disposable wages per pay period. Payroll should calculate disposable earnings correctly and apply the applicable state and federal limitations.

Failing to Apply the Low-Wage Protection

Maryland provides additional protection for employees earning minimum wage or near minimum wage. Employers should verify that the employee is left with the amount protected under Maryland law.

Missing the 30-Day Employer Answer Deadline

Maryland generally requires the garnishee to answer a wage-garnishment writ within 30 days after service. Payroll departments should immediately calendar the deadline when a writ is received.

Ignoring Existing Wage Liens

The Maryland garnishment answer requires the employer to state whether prior liens exist against wages. Payroll should check for existing withholding orders before determining the amount available for a new garnishment.

Applying the Ordinary 25% Rule to Child Support

Child-support withholding is governed by separate federal and Maryland rules. Employers should follow the income-withholding order and applicable federal limits rather than automatically applying the ordinary Maryland 25% limit.

Charging an Unauthorized Processing Fee

Maryland does not provide a general processing fee for every ordinary judgment garnishment. A $2 fee is specifically authorized for each deduction under qualifying child-support income-withholding orders. Payroll should not apply the child-support fee to unrelated garnishments.

Failing to Remit Garnished Wages on Time

Maryland's ordinary wage-garnishment instructions generally require the employer to send withheld wages within 15 days after the close of the last pay period of the employee each month.

Ignoring a Garnishment Because the Employee Disputes the Debt

An employer generally should not independently decide whether the underlying judgment is valid. If the employee disputes the garnishment, payroll should follow the procedures and instructions in the writ concerning defenses or objections.

Maryland Garnishment FAQs

Can a Creditor Garnish Wages in Maryland?

Yes. A judgment creditor can generally garnish wages after obtaining a judgment and following Maryland's garnishment procedures.

What Is the Maximum Wage Garnishment in Maryland?

For ordinary judgment garnishments, the general maximum is 25% of disposable wages per pay period, subject to applicable exemptions and low-wage protections.

Can Credit Card Companies Garnish Wages in Maryland?

Yes. A creditor that obtains a valid judgment may generally pursue wage garnishment through Maryland's court procedures.

Can Medical Bills Be Garnished From Wages in Maryland?

Yes. Medical creditors may potentially garnish wages after obtaining a judgment and following the required garnishment process.

Can Child Support Be Garnished From Wages in Maryland?

Yes. Maryland uses income-withholding procedures for child support, and these orders are subject to federal and state withholding limits and priority rules.

Can Federal Student Loans Be Garnished in Maryland?

Yes. Federal law permits administrative wage garnishment for qualifying federal student-loan debt, generally up to 15% of disposable pay subject to federal requirements.

Can the IRS Garnish Wages in Maryland?

Yes. Federal tax levies can require Maryland employers to withhold wages under federal law.

What Is the Maryland Garnishment Form for Employers?

For an ordinary wage garnishment, the Maryland Judiciary uses the Writ of Garnishment of Wages, Form DC-CV-065, together with the garnishee's answer.

What Is the Maryland Employer Garnishment Answer Deadline?

The employer generally must file its answer within 30 days after service of the writ.

Can a Maryland Employer Charge a Garnishment Fee?

There is no general processing fee for ordinary judgment garnishments. For qualifying child-support income withholding, Maryland permits an employer to deduct and retain $2 for each deduction.

When Must a Maryland Employer Send Garnished Wages?

For an ordinary wage garnishment, the employer is generally directed to send the withheld amount within 15 days after the close of the employee's last pay period each month.

What Happens If an Employer Ignores a Maryland Garnishment Order?

An employer that fails to timely answer or comply with a valid writ may face court action, including a possible contempt proceeding and potential attorney's fees and costs.

Maryland Garnishment Compliance Tips for Employers

Maryland employers should establish a consistent process for handling wage-garnishment orders. The process should begin as soon as the writ is received so that the 30-day answer deadline is not missed.

Payroll should verify the employee's identity, calculate disposable earnings, apply the applicable 25% limitation and low-wage protection, review existing liens, and determine whether another withholding order has priority.

Employers should also distinguish ordinary judgment garnishments from child-support income withholding, federal student-loan garnishments, and federal tax levies. Each type of withholding can have different limits, fees, priority rules, forms, and payment procedures.

Payroll departments should maintain copies of the writ, answer, withholding calculations, payment records, correspondence, amended orders, and releases.

Final Takeaway

Maryland permits wage garnishment for qualifying judgments, but employers must follow specific procedures and withholding limitations.

For an ordinary judgment garnishment, the general maximum is 25% of disposable wages per pay period, subject to Maryland's low-wage protections and other applicable exemptions. Employers generally have 30 days after service to file the garnishee's answer.

Child support, federal student loans, federal tax levies, and other specialized obligations can be subject to different rules. Employers should identify the type of withholding before calculating deductions or applying an administrative fee.

A documented garnishment process can help Maryland employers meet response deadlines, apply the correct withholding limits, recognize priority orders, remit payments correctly, and avoid costly payroll errors.

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