Legal Question in Credit and Debt Law in Illinois

To garnish requires a judgment. They can take 15% of your gross after a calculation of minimum wage standards. I believe unemployment can only be garnished for child support, but i could be wrong. Unpaid student loans can also affect professional licenses.

I think unemployment can be garnished as long as it meets the 45 times the minimum wage standard.

1. 15% of gross weekly wages, or

2. the amount by which disposable earnings for the week exceed the greater of 45 times the federal hourly wage or, under a wage deduction summons, the minimum hourly wage prescribed by the Minimum Wage Law (emphasis added to point out the change in the law—the Minimum Wage Law referred to is Illinois’ legislation).

The following examples illustrate the impact of the change: The ABC Printing Company recently received three wage garnishments for three different employees.

Employee A has gross weekly earnings of $750.00 and disposable weekly earnings (DWE) is calculated as $625.00

1. 15% of $750 = $112.50 deduction

2. a. (DWE = $625) – (45 X Federal Minimum Wage or $231.75) = 393.25 deduction;

b. (DWE = $625) – (45 X Illinois Minimum Wage or $292.50) = $332.50 deduction.

Garnishment amount is $112.50 (calculation #1)

Employee B has gross weekly earnings of $260.00 and DWE is calculated as $200.00

1. 15% of $260 = $30 deduction

2. a. (DWE = $200) – (45 X Federal Minimum Wage or $231.75) = $00.00 deduction;

b. (DWE = $200) – (45 X Illinois Minimum Wage or $292.50) = $00.00 deduction.

Garnishment amount is $00.00 (calculation #2a or 2b—they are the same amnt)

Employee C has gross weekly earnings of $350.00 and DWE is calculated as $300.00

1. 15% of $350 = $52.50 deduction

2. a. (DWE = $300) – (45 X Federal Minimum Wage or $231.75) = $68.25 deduction;

b. (DWE = $300) – (45 X Illinois Minimum Wage or $292.50) = $7.50 deduction.

Garnishment amount is $7.50 (calculation #2b)

In all cases, the garnishment amount is the least amount of the three calculations.

Some student loan programs do allow for garnishment without judgment.