Wage garnishment represents one of the most reliable collection tools available to judgment creditors. Unlike bank levies that capture only what happens to be in an account at a specific moment, wage garnishments provide a steady stream of payments directly from the debtor’s employer over time. However, New York law imposes significant restrictions on how much can be garnished and which types of income are protected. Understanding these rules and following proper procedures ensures maximum recovery while avoiding costly mistakes that could derail your collection efforts.
How Income Execution Works in New York
Income execution is the formal term for wage garnishment in New York under CPLR Section 5231. The process begins with obtaining an income execution from the clerk of the court that entered your judgment. This execution is then delivered to the sheriff or marshal along with the required fees and detailed information about the debtor’s employer. The enforcement officer serves the income execution on the employer, who must then begin withholding a portion of the debtor’s wages and remitting those amounts to the officer for payment to you.
Unlike some states where garnishments are one-time seizures, New York’s income execution is continuous and remains in effect until the judgment is satisfied in full, the debtor’s employment ends, or the execution is quashed by court order. This continuity makes wage garnishment particularly effective for collecting judgments over time from debtors with steady employment.
Federal and State Exemption Limits
The amount that can be garnished from wages is strictly limited by both federal and state law, with the law most favorable to the debtor controlling. Federal law under the Consumer Credit Protection Act limits garnishment to the lesser of 25 percent of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage per week. Disposable earnings means gross wages minus legally required deductions like taxes and Social Security, not voluntary deductions like retirement contributions or health insurance.
New York law provides even more generous protections for debtors. Under CPLR Section 5231, only 10 percent of gross wages can be garnished, or 25 percent of disposable earnings, whichever is less. For most New York employees, the 10 percent of gross wages limitation provides greater protection than the federal standard. This means even debtors with substantial incomes may have relatively modest amounts subject to garnishment.
The exemption limits increase significantly for low-income workers. Earnings up to 30 times the federal minimum wage per week are completely exempt from garnishment. Given the current federal minimum wage of $7.25 per hour, this protects approximately $217.50 per week from garnishment. For workers earning near minimum wage, this exemption may shield all or most of their income.
Types of Income Subject to Garnishment
Regular wages and salaries are the most common targets of income execution, but New York law allows garnishment of other compensation as well. Bonuses, commissions, and overtime pay are all subject to the same garnishment limits as regular wages. Tips and gratuities can be garnished if they are reported as income to the employer and paid through the regular payroll system.
However, numerous income sources are completely exempt from garnishment regardless of amount. Social Security retirement and disability benefits cannot be garnished to satisfy ordinary money judgments, though they can be garnished for child support, alimony, and certain government debts. Supplemental Security Income (SSI), Veterans’ benefits, unemployment compensation, workers’ compensation benefits, and public assistance payments are similarly protected from execution.
Retirement income including pension payments and distributions from 401(k) plans and IRAs also enjoy significant protection under both federal law and New York CPLR Section 5205. Once deposited in a bank account, these funds may lose some protection if commingled with other money, making bank levies potentially effective where income execution is not.
Employer Obligations and Protections
Employers who receive income executions have mandatory duties under New York law. They must begin withholding the appropriate amount from the debtor’s next paycheck and continue withholding until the judgment is satisfied or they receive notice that the execution has been lifted. The employer must remit the withheld funds to the sheriff or marshal according to the schedule specified in the execution, typically every two weeks or monthly depending on the pay period.
Employers cannot terminate or discipline employees solely because their wages are being garnished. Federal law prohibits employment discrimination based on a single wage garnishment, though this protection diminishes if the employee has multiple garnishments. Employers who violate this prohibition may face civil liability.
If an employer fails to honor a properly served income execution, they can become personally liable for the amount they should have withheld up to the full judgment amount. This liability gives employers strong incentive to comply with garnishment orders. Working with experienced Warner & Scheuerman collection attorneys ensures that income executions are properly prepared and served to maximize employer compliance.
Best Practices for Effective Wage Garnishment
Before pursuing wage garnishment, verify current employment through information subpoenas or debtor examinations. Serving an execution on a former employer wastes time and money while giving the debtor notice of your collection efforts. Similarly, confirm the correct legal name and address of the employer to ensure proper service.
Consider whether the debtor’s income level makes garnishment worthwhile given the exemption limits. High earners provide better garnishment targets than minimum wage workers whose income may be largely or entirely exempt. Calculate the likely monthly recovery and compare it to the costs of obtaining and serving the execution to ensure the strategy makes economic sense.
Monitor ongoing garnishments to ensure employers remain compliant and watch for changes in employment status that might require serving a new execution on a different employer. Stay informed about the total amount collected and be prepared to release the execution once the judgment is satisfied to avoid over-collection that could result in liability.
