GARNISHMENT AND PAYMENTS

Garnishment and Payments

Answers to the Questions

Question 1

Referring to the case, the lump-sum payment made to an employee does not fall within the statutory meaning because the amount paid is garnished. The lump sum severance payment made to an employee does not fall within the statutory meaning of “earnings” or “disposable earnings” because it was not a periodic payment of compensation. Accordingly, the employer was not required to garnish the lump sum when the garnishment order specified earnings.

Question 2

If a person receives a garnishment notice they are required by law to respond to the court. A failure to respond then ...