New York State law limits the amount that a creditor can garnish (take) from your wages for repayment of debts. New York State wage garnishment laws (commonly called income executions in New York) are only slightly more restrictive than federal law. For the most part, creditors with judgments can only take up to 10% of your gross wages. For a few types of debts, creditors can take more.
Read on to learn about income execution law in New York State.
What Is an Income Execution?
An income execution is an order from a court or a government agency that is sent to your employer. It requires your employer to withhold a certain amount of money from your paycheck and then send this money directly to your creditor.
Different rules apply to different types of debt -- and there are legal limits on how much of your paycheck can be garnished through an income execution.
To learn more about how income executions or wage garnishments work, how to object to an income execution, and more, see our Wage Garnishment and Attachment topic.
When Can a Creditor Garnish Your Wages in New York State?
Most creditors cannot get an income execution order until they have first obtained a court judgment stating that you owe the creditor money. For example, if you are behind on credit card payments or owe a doctor’s bill, those creditors cannot garnish your wages (unless they sue you and get a judgment).
However, there are a few exceptions to this rule. Your wages can be garnished without a court judgment for:
- unpaid income taxes
- court ordered child support
- child support arrears, and
- defaulted student loans.
Limits on Income Execution in New York State
There are limits to how much money can be garnished from your paycheck. The idea is that you should have enough left to pay for living expenses.
Federal law places limits on income execution amounts. While states are free to impose stricter limits, New York State only slightly expands the federal limits.
Here are the rules:
In New York State, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30% of minimum wage. If your disposable income is less than 30 times minimum wage, it cannot be garnished at all.
"Disposable earnings" are those wages left after your employer has made deductions required by law. Examples of legally required deductions are federal, state and local taxes, social security and the employee portion of state unemployment compensation insurance. Deductions that are not required by law do not count to reduce your disposable income.
Special Limits for Child Support, Student Loans, and Unpaid Taxes
If you owe child support, student loans, or taxes, the government or creditor can garnish your wages without getting a court judgment. The amount that can be garnished is different too.
Since 1988, all court orders for child support include an automatic income withholding order. The other parent can also get an income execution order from the court if you get behind in child support payments. (To learn about income withholding orders and other ways child support can be collected, see Child Support Enforcement Obligations.)
Federal law limits what can be taken from your paycheck for this type of wage garnishment. Up to 50% of your disposable earnings may be garnished to pay child support if you are currently supporting a spouse or a child who isn't the subject of the order. If you aren't supporting a spouse or child, up to 60% of your earnings may be taken. An additional five percent may be garnished for support payments over 12 weeks in arrears. (Learn more about wage garnishment for child support arrears.)
Student Loans in Default
If you are in default on a federal student loan, the U.S. Department of Education or any entity collecting for this agency can garnish your wages without first getting a court judgment – this is called an administrative garnishment. The most that the Department of Education can garnish is 15% of your disposable income, but not more than 30 times the minimum wage. To learn more, see the articles in Student Loan Debt.
The federal government can garnish your wages if you owe back taxes, even without a court judgment. The amount it can garnish depends on how many dependents you have and your deduction rate.
States and local governments may also be able to garnish your wages to collect unpaid state and local taxes. Contact your state labor department to find out more. (You will find a link to your state labor department below.)
In New York, the state can garnish up to 10% of your gross wages for unpaid taxes.
Total Amount of Garnishment
If you have more than one garnishment, the total amount that can be garnished is limited to 10% of your gross wages or 25% of your disposable wages, whichever is less. For example, if the federal government is garnishing 15% of your disposable income to repay defaulted student loans and your employer receives a second wage garnishment order, the employer can only take another 10% of your disposable income to send to the second creditor.
Restrictions on Job Termination Due to Wage Garnishments
Complying with wage garnishment orders can be a hassle for your employer; some might be inclined to terminate your employment rather than comply with the order. State and federal law provides some protection for you in this situation.
According to federal law, your employer cannot discharge you if you have one wage garnishment. However, federal law won’t protect you if you have more than one wage garnishment order. Some states offer more protection for debtors. In New York State, your employer cannot fire you, refuse to promote you or take any negative action against solely because of an income execution.
For More Information on New York State Income Execution Laws
To find more information about wage garnishment limits in New York State, including the procedures that employers must follow in carrying out wage garnishment orders, check out the website of the New York State Department of Labor at www.labor.ny.gov.