New York Wage Garnishment Laws: Your Complete Guide

Most creditors must get a court order to garnish your wages in New York. Two exceptions exist: garnishments for public debts like past-due taxes and family debts like child support. The law limits how much of your weekly earnings creditors can take. These limits vary based on minimum wage in your area and your debt type. Your employer cannot fire you for having one wage garnishment order.

Is Wage Garnishment Legal in New York?

Yes, wage garnishment is legal in New York. Most creditors must first sue you and get a court order called a money judgment. Limits exist on how much money creditors can take from your paycheck.

Anyone you owe money to qualifies as a creditor. Debt collectors, credit card companies, banks, auto lenders, government agencies, and even business partners can garnish wages. Most creditors need a court judgment first. Some creditors can garnish your wages without a judgment for certain debt types.

How Debt Collection Lawsuits Lead to Wage Garnishment

If a creditor sues you and proves you owe money, the judge can enter a judgment. A judgment is a court order to pay the debt.

If you don’t respond to the lawsuit, the creditor wins a default judgment. Once a creditor wins a judgment, they can attempt wage garnishment. Most debt collection lawsuits in New York lead to default judgments.

One powerful defense is to respond to the lawsuit against you. You may be able to win the lawsuit and avoid wage garnishment altogether. If you’re worried about responding alone but can’t afford a lawyer, our partner Solo can help you draft an answer letter for a small fee.

Legal Terms to Know

Legal terms often feel like a foreign language. Here are key terms you might encounter:

• Judgment creditor: A creditor who has a judgment against you.
• Judgment debtor: The person ordered to pay.
• Judgment debt: The amount you’re ordered to pay.
• Income execution: A court order requiring your employer to withhold money from paychecks to pay the judgment debt.

Who Can Garnish Your Wages Without a Court Judgment?

Creditors pursuing public debts or family debts can typically garnish wages without a court order. Public debts and family debts have different garnishment limits than private debts.

Public debts include debts owed to public or governmental entities:

• Past-due state or federal income taxes
• Other past-due state or local taxes like business or property tax
• Defaulted federal student loans
• Fees, fines, or other debts owed to federal, state, or local government

Family debts include court-ordered child support, alimony, and related debts. Wage garnishments for past-due family support obligations don’t require a separate judgment.

Current child support and alimony obligations aren’t technically debts. They can be withheld from your pay automatically as part of the support order.

How Much of Your Wages Can Be Garnished in New York for Private Debts?

Debt that isn’t public or family debt is called private debt. Credit card debt, medical bills, bank loans, and private student loans are examples.

New York state laws limit how much a creditor can garnish. From each paycheck, creditors can take either 10% of your gross income or 25% of your disposable income, whichever is less.

Gross income is your income before deductions. Disposable income is your pay after subtracting legally required deductions like Social Security, unemployment insurance, and income taxes.

One important caveat exists: The garnishment must leave you with at least 30 times the state minimum wage in weekly earnings. In New York City, where minimum wage is $16.50, garnishment can’t leave you with less than $495 per week.

If you don’t earn at least 30 times the state minimum wage each week, your earnings can’t be garnished.

How Much Can Be Garnished for Tax Debt, Court-Ordered Support, and Student Loans?

Tax debt, court-ordered support, and defaulted federal student loans aren’t private debts. Creditors don’t need a court judgment to garnish wages for these debts. Public debts and family debts have different garnishment limits than private debts.

Court-Ordered Support Garnishment Limits

For past-due family support debts, your employer can withhold up to 60% of disposable income. That applies if you’re not currently supporting any other spouse or children.

If you’re currently supporting a different spouse and/or children, up to 50% of disposable earnings can be withheld. If support payments are more than 12 weeks in arrears, an additional 5% can be withheld. The maximum withholding rises to 65% and 55%, respectively.

Tax and Student Loan Debt Garnishment Limits

If you owe unpaid taxes, the government can garnish wages without a court order. For federal taxes, the federal government determines how much income is exempt from garnishment. Exemptions are based on your income and family size. You can find exemptions on this IRS table.

The U.S. Department of Education can garnish up to 15% of disposable income for defaulted student loans. You must be left with at least 30 times minimum wage each week.

Can More Than One Creditor Garnish Your Wages?

Technically, yes. But if multiple creditors try to garnish wages simultaneously, usually only the first creditor receives any withholding. Maximum deduction limits apply no matter how many income executions are issued. The total allowed withholding typically goes to the first creditor until that debt is paid.

How Long Does Wage Garnishment Last?

Once income execution begins, your employer continues withholding money from each paycheck until:

• The judgment debt, including accrued interest, is paid in full
• You’re no longer employed there
• Another court order directs them to stop withholding, such as an order vacating the judgment or a bankruptcy court order

Income Exempt From Wage Garnishment in New York State

Under New York law, several income sources are exempt from garnishment. These exemptions usually won’t affect an income execution issued to your employer. But if a creditor tries to levy your bank account, your account is protected if it contains exempt income.

Examples of exempt income sources in New York include:

• Payments from Social Security Administration or Veterans Affairs
• Court-ordered spousal support or child support you receive
• Unemployment benefits
• Workers’ compensation benefits
• Disability benefits
• Benefits from public assistance programs

View a full list of exempt income sources on the New York State Unified Court System’s website. If your employer receives an income execution and you believe your income is exempt, you can file an exemption claim form with the court.

Can You Be Fired for Having a Wage Garnishment?

Both federal and New York state laws make it illegal for your employer to fire you for having one income execution. Employers cannot withhold a pay raise or pass you over for promotion. These protections don’t apply if you have more than one income execution.

How to Stop Wage Garnishment

You have options to stop or prevent wage garnishment. The most effective way to prevent garnishment is to respond to the lawsuit before a judgment is entered. Our partner Solo can help you respond to debt collection lawsuits quickly and affordably.

If a judgment is already in place, you may be able to negotiate a payment plan with the creditor. Some creditors will agree to stop the garnishment if you make regular payments.

Filing bankruptcy creates an automatic stay that stops most wage garnishments immediately. Bankruptcy can also discharge many types of debt permanently. You can seek credit counseling to understand your options for getting finances back on track. A good credit counselor can help you decide if bankruptcy is right for you.