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Summary of differences between federal and state regulations
The state of Michigan has a number of statutes related to garnishment of wages.
State
Contact
Questions regarding a wage garnishment order should be directed to the court which issued the order.
Regulations
Act 295 of 1982, 552.623 Using order of income withholding as basis for refusing to employ, discharging, disciplining, or penalizing payer prohibited; violation as misdemeanor; penalty; restitution; use of occupational, driver’s, or recreational or sporting license as basis; exception.
(1) A source of income shall not use a notice of income withholding as a basis for refusing to employ, discharging, taking disciplinary action against, or imposing a penalty against a payer. A source of income who refuses to employ, discharges, disciplines, or penalizes a payer in violation of this section is guilty of a misdemeanor, punishable by a fine of not more than $500.00, and shall be required to make full restitution to the aggrieved payer, including reinstatement and back pay.
(2) A source of income shall not use the suspension, as provided for in this act, of an occupational license, driver's license, or recreational or sporting license as the basis for refusing to employ, discharging, taking disciplinary action against, or imposing a penalty against a payer unless the suspended license is legally required for the payer's performance of the job. This act does not prevent a source of income from refusing to employ or discharging an individual whose occupational license, driver's license, or recreational or sporting license is suspended if that license is a necessary predicate to engage in that occupation, vocation, or profession.
Act 236 of 1961, 600.4012 Writ of garnishment as to periodic payments; duration; priority of writs of garnishment; liability of garnishee defendant; fee; “periodic payments” defined.
(1) Except for garnishment of a tax refund under section 4061a, and subject to subsection (2), a writ of garnishment of periodic payments remains in effect for the period prescribed by the Michigan court rules.
(2) A garnishee is not liable for a writ of garnishment of periodic payments under subsection (1) to the extent that the garnishee is required to satisfy another writ of garnishment against the same defendant having a higher priority or having the same priority but received at an earlier date. For purposes of this subsection, writs of garnishment have priority in the following order:
(2)(a) A garnishment resulting from an obligation of court ordered support as defined in section 2 of the support and parenting time enforcement act, Act No. 295 of the Public Acts of 1982, being section 552.602 of the Michigan Compiled Laws.
(2)(b) A levy of the state or a governmental unit of the state to satisfy a tax liability.
(2)(c) Any other garnishments, in the order in which they are served.
(3) Except as otherwise provided by statute, a plaintiff shall pay a fee of $6.00 at the time a writ to the garnishee of garnishment of periodic payments is served upon the garnishee.
(4) As used in this section and section 8410a, “periodic payments” means wages, salary, commissions, and other earnings, land contract payments, rent, and other periodic debt or contract payments that are or become payable during the effective period of the writ of garnishment. Periodic payments do not mean any of the following:
(4)(a) Payments by a financial institution of interest on a deposit account.
(4)(b) Charges made by a financial institution automatically against an account which applies to a debt under an automatic payment authorization executed by the account owner.
(4)(c) Payments made by a financial institution to honor a check or draft or to comply with an account holder's order of withdrawal of funds from an account.
(4)(d) Interest earned on a certificate of deposit that is paid into a deposit account.
Act 236 of 1961, 600.4015 Actions as cause of discipline or discharge of principal defendant from employment; reinstatement; civil action.
A garnishee defendant shall not use the fact that the principal defendant has had 1 or more actions brought against him under the provisions of this chapter or section 8306 as a cause of discipline or discharge of the principal defendant from employment. A garnishee defendant who violates the provisions of this section shall be required to reinstate the principal defendant to employment and reimburse all compensation lost by the discipline or discharge. The principal defendant may enforce his rights under this section by appropriate civil action.
Federal
Contact
www.dol.gov/general/topic/wages/garnishments
Regulations
Federal law limits the amount of wages that can be garnished, in most cases, to 25 percent of weekly earnings after taxes. If more that one garnishment order exists against an individual, the total amount cannot exceed the maximum set by law. Some government obligations, such as back taxes and child support, always have precedence.