Employee Garnishment

[mallorymm]

Our company accepted a service by mail garnishment on Sept. 8th, 2008 from a collection agency for one of our employees. The agency sent over documents that our accounting dept. presumed was inaccurate. The collection agency was called on Sept. 9 and told of the problem, we requested accurate documents. We were never sent any new paper work. I followed up with the agency on 10/2/2008, I left a voicemail and never received a callback. The collection agency did not return my calls nor did they send new garnishment paperwork. I have been holding on to these documents and have not submitted them until I received proper paperwork or at least communication from the collection agency. It is now November 25, 2008 and I received a call from the collection agency asking why they have not received any funds from the employee that they garnished. I explained that the paperwork we received was inaccurate and that I have attempted to get assistance from them and was unsuccessful. This agency is telling me that because we never put this garnishment through yet, our company is financially responsible for cutting the collection agency a check for all wages due from Sept, Oct & Nov., then we have to go after the employee to get paid back ourselves. This just does not sound right to me at all. Plus told me we must pay them back in full all wages then take it entirely out of my employees next check or split it into two payments. This is illegal, the state maximum for garnishment is 25%. There is no way we can take over $800 from this employees check, even if split into two deductions, it is exceeding 50% of employees net wages. I need to know if my company is actually financially responsible to cut this agency a check or if they are using this as a tactic to get their money faster. I would understand this situation more if we neglected the paperwork but they acknowledge that we did make attempts to contact them to get this paperwork cleared up. What should we do from here? The company is expecting a check in the full amount for the last 3 months?

 

[dee_dub]

This agency is telling me that because we never put this garnishment through yet, our company is financially responsible for cutting the collection agency a check for all wages due from Sept, Oct & Nov., then we have to go after the employee to get paid back ourselves.

It is probably a tactic, but that doesn't mean it's an empty threat. If your company was served with a valid garnishment order, you can be liable for not carrying it out. Depending on what this problem with the paperwork was, you may have had good reason for not carrying it out.

I would commence garnishment now that the inaccuracy is cleared up. If they want more, they'll have to convince a judge why you should be responsible for their error in submitting inaccurate documents and failing to correct them. I would also suggest you post this in the employment law forums to see what the smart folks there say.