In Utah, a creditor can use a writ of garnishment to take a portion of your income to repay your debt. Utah law protects a portion of your income by limiting the amount that a creditor can garnish. The Utah wage garnishment laws protect the same amount as the federal wage garnishment laws. For the most part, creditors with judgments can take only 25% of your wages. However, for a few types of debts, creditors can take more.
Read on to learn about wage garnishment law in Utah.
A wage garnishment or wage attachment 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 garnishment rules apply to different types of debt -- and there are legal limits on how much of your paycheck can be garnished.
To learn more about how wage garnishments work, how to object to a wage garnishment, and more, see our Wage Garnishment and Attachment topic.
Most creditors must first obtain a court judgment stating that you owe them money. Once a creditor has such a judgment, it is called a "judgment creditor" and it has the right to execute against (take) certain personal property or wages to repay your debt. For example, only a judgment creditor can garnish your wages for a credit card debt or doctor's bill.
There are some exceptions to this rule. Your wages can be garnished without a court judgment for:
There are limits to how much money can be garnished from your paycheck. The purpose of the Utah wage garnishment law is to protect enough of your income to allow you to pay for your living expenses.
Federal law places limits on wage garnishment amounts. While states are free to impose stricter limits, Utah has not done so. The Utah and federal wage garnishment laws protect the same amount of your income. In accordance with 15 U.S.C. §1673, Utah Code 70C-7-103, and Rule 64D of the Utah Rules of Civil Procedure, the most a creditor can garnish from your wages is:
"Disposable earnings" are those wages left after your employer has made deductions required by law.
Example. You bring home $600 per week after taxes and your mandatory state retirement contributions. 25% of your disposable earnings is $150. The amount by which your disposable earnings exceed 30 times the minimum wage is $382.50 [$600 - (30 x $7.25)]. Your creditor can garnish the lesser amount, which is $150 per week.
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 a wage garnishment 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.)
Utah law allows up to 50% of your disposable earnings to be garnished for child support
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. Check out the website of the Utah State Tax Commission at http://tax.utah.gov to learn more. Click Billing & Payments and Pub 2 Utah Taxpayer Bill of Rights.
If you have more than one garnishment, the total amount that can be garnished is limited to 25%. For example, if the federal government is garnishing 15% of your income to repay defaulted student loans and your employer receives a second wage garnishment order, the employer can only take another 10% of your income to send to the second creditor.
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.
To find more information about wage garnishment limits in Utah, including the procedures that employers must follow in carrying out wage garnishment orders, check out the website of the Utah State Courts at www.utcourts.gov, click on Self-Help Resources, then Court Forms & Instructions, and then Garnishments.