published in The Journal Record | January 14, 2016
On the whole, most employers do an admirable job of keeping up with the ever-changing statutes and regulations that apply to the employer-employee relationship. Wage garnishments, however, are often overlooked by employers.
That is not to say that most employers ignore wage garnishments upon receipt or refuse to comply. Instead, many employers simply make a calculation to determine if the employee earns a sufficient amount to deduct wages, send an answer and some funds to the creditor’s attorney, and think their job is done.
Treating garnishments without proper care is a mistake – one that is potentially very costly. The statutes governing wage garnishments are very technical, and attorneys for creditors enforce these technicalities to their advantage. If they cannot collect from the actual debtor, they will attempt to collect from the debtor’s employer who has handled a garnishment incorrectly. After receiving a garnishment, an employer (which Oklahoma statutes call the “garnishee”) is required to file an answer with the court within seven days after the next pay period. Further, creditor’s counsel may take the position employers are required to file an answer after each pay period for the duration of the garnishment (continuing garnishments on earnings are effective for 180 days).
Even if an answer is filed every week, the employer is not yet off the hook. A creditor may issue discovery to an employer for the purpose of determining whether the employer owes the creditor anything. For example, if an employer files an answer stating that the individual is not an employee, earned too little to garnish wages, or is already subject to a garnishment, the creditor can issue discovery for proof thereof.
When an employer fails to file an answer to the garnishment or discovery, a court can issue severe penalties. The creditor can ask the judge to enter an order demanding an answer by the employer. If the employer fails to answer after being served with the order, the court can enter judgment against the employer in the amount of the judgment against the defendant plus costs and attorney fees. This means if the creditor has a judgment against the debtor/employee in the amount of $25,000, the court can enter a judgment against the employer in the amount of $25,000 for failing to answer in a garnishment proceeding (plus costs and fees).
While a garnishment may be a routine annoyance to an employer, failure to comply with the mechanics of the law comes with significant consequences. It is important for employers to have processes in place to ensure that nothing in the garnishment proceeding slips under the radar.
This article appeared in the January 14, 2016, issue of The Journal Record. It is reproduced with permission from the publisher. © The Journal Record Publishing Co.
