Wage garnishment is a legal mechanism creditors employ to recover unpaid debts, involving the process of withholding a portion of an individual’s income or salary. This process initiates when a debtor fails to meet their financial obligations.

Typically, a creditor obtains a court order known as a writ of garnishment, directing the garnishee (creditor) to deduct a specific amount from an employee’s earnings toward debt settlement. This intricate process adheres to a complex set of rules and procedures, primarily outlined in Missouri’s Chapter 525 statutes and the Missouri Supreme Court rules.

It’s worth noting that federal legislation may come into play when addressing garnishment matters. (Our firm’s attorneys are well-versed in the rights and responsibilities associated with these proceedings and can offer expert guidance.)

Navigating Wage Arrest in Missouri

In Missouri, when a creditor secures a court judgment against a debtor, additional steps are required for enforcement. One avenue involves wage arrest:

• In Missouri, once a court verdict has been passed against a debtor, further steps are essential for its implementation. One such approach is the apprehension of wages. To set this in motion, the person to whom the debt is owed (also known as the garnishee) needs to submit a formal plea to the court responsible for the original judgment, adhering to particular criteria. Once the court greenlights this, the order is handed over to the creditor who received the judgment. Following this, the garnishee is given a five-day window to provide the debtor with a replica of both the summons and the court’s directive, as per the court’s stipulations. (Reference: Mo. S. Ct. R. 90.02; Mo. S. Ct. R. 90.03.);
• Every directive from the court should include critical details and clauses, notably alerts regarding any exclusions as highlighted by either state or federal legislation. (Refer: Mo. S. Ct. R. 90.035(a).) Should the debtor decide to stake a claim for an exemption from paying as per the court’s verdict, they are mandated to present a validated claim of exemption within a period of twenty days post receiving the garnishment alert. (See: Mo. S. Ct. R. 90.035(b).);
• After this, the garnishee is allowed a twenty-day span to dispute any exemption claims by presenting a plea for a review. Any delay in this action leads to forfeiture of rights over the disputed money. If the plea is submitted within the prescribed time, the court then either makes a determination based on the disputed paperwork or schedules a fast-tracked hearing, to be held within a 30-day period from the plea’s submission. (For reference: Mo. S. Ct. R. 90.035(c).);
• Furthermore, the garnishee possesses another twenty-day timeframe to counter any exemption claims by appealing to the judiciary. Any delay in this process negates the plea for retrieval of the disputed sum. However, should a timely counterclaim be made, the judiciary either passes a judgment after assessing the disputed documents or organizes a swift hearing, to occur within thirty days post the review plea submission. (Citation: Mo. S. Ct. R. 90.035(c)).

Specific rules govern the exchange of information between the garnishee and the garnished individual regarding wages or property subject to garnishment. The garnishee’s request for such information must accompany written inquiries along with the order for wage arrest. (Mo. S. Ct. R. 90.07(a)). Furthermore, should other interested parties emerge during the legal process, having claims to the arrested property, the creditor must notify them of the impending wage arrest and their right to participate in the proceedings. (Mo. S. Ct. R. 90.09.)

Compensation for Responding to Inquiries

Reward, including attorney fees, can be granted to responders of creditor inquiries. (Mo. S. Ct. R. 90.12(a)). Additionally, if the garnishee disputes the responses but doesn’t obtain a court decision against them, expenses related to garnishment, including “reasonable attorney’s fees,” are assigned to the garnishee. (Mo. S. Ct. R. 90.12(b)). Notably, presenting a bona fide exemption claim on behalf of the judgment debtor doesn’t waive the garnishee’s entitlement to costs and attorney fee payment. (Id.)

If the garnishee admits, in their responses to the interrogatories, to possessing the seized property, they must promptly pay the earnings or property to the court or the garnishee’s attorney, without requiring an additional court order. (See Mo. S. Ct. R. 90.10; § 525.070 RSMo.) In the absence of objections, disputes, or attempts to halt the garnishment, wages or property transferred to the court must be paid to the employer, minus expenses, within ten days. (Mo. S. Ct. R. 90.11.)

Statute of Limitations on Debt Collection Cases in Missouri

In Missouri, the statute of limitations for collections ranges from 5 to 10 years. After this period, creditors lose the right to sue the debtor. However, the debtor remains responsible for the debt even after the statute of limitations expires. When served with a summons regarding a debt that might become time-barred, seeking legal advice is recommended to determine the next steps.

Introducing Continuous Garnishment

Until January 15, 2015, Missouri’s legislation confined wage garnishment to specific time frames, often ranging from 30 to 180 days. This system compelled creditors to extend the garnishment duration until its expiration to prevent yielding priority to other creditors. However, a 2015 amendment introduced the concept of “continuous garnishment” to Missouri’s laws.

• According to Missouri’s interpretation, “continuous garnishment” refers to the ongoing garnishment of earnings as defined in Section 525.030 RSMo. This continues until full judgment execution or termination of employment, whichever comes first. (Mo. S. Ct. R. 90.01.);
• Section 525.030 broadly defines “earnings,” encompassing compensation for personal services, regardless of terminology (e.g., wages, salary, commissions, bonuses), including periodic pension or retirement payments. (§ 525.030.2(5) RSMo.);
• However, new Rule 90.19 mandates that creditors conducting continuous garnishment file a “judgment statement” every six months detailing payments received over the preceding half-year and any unsatisfied portions of the judgment, including post-judgment interest and costs;
• The judgment statement must be filed within twenty days after the six-month period following the commencement of the garnishment. (Mo. S. Ct. R. 90.19(b).) Failure to comply may result in termination of garnishment either through court order or external intervention. (Mo. S. Ct. R. 90.19(c)).

Furthermore, when an employer deals with an employee subject to multiple garnishments, they must identify superior garnishments, including case numbers, to subordinate creditors. (Mo. S. Ct. R. 90.04.)

Capping Garnishment Amounts

Missouri law sets a maximum garnishment cap on weekly wages, with specific limitations. The cap must not exceed either twenty-five percent of aggregate earnings (after lawful deductions) per week or the difference between total weekly earnings and thirty times the federal minimum wage, as defined by FLSA, or ten percent of earnings for heads of households and state residents, whichever is lower. (§ 525.030.2(1); 15 U.S.C. § 1673).

The same principles apply to pay periods exceeding one week, with exceptions based on pay period length. (§ 525.030.2(3).)

Wage Garnishment Limits

In the realm of wage garnishment, Missouri’s legislation defines clear boundaries within which wages can be withheld during a workweek. According to § 525.030.2 RSMo, the maximum portion of an individual’s aggregate earnings subject to garnishment during a workweek must not exceed:

• 25% of the difference between total weekly earnings (after lawful deductions) and thirty times the federal minimum wage set by the FLSA;
• Or 10% if the employee is a head of household and resides in the state, whichever is lower.

These provisions are elaborated in § 525.030.2(1), with a similar scheme outlined in federal law under § 1673 of 15 U.S.C. This doctrine maintains consistency for pay periods exceeding one week, with the sole exception detailed in § 525.030.2(3).

For such periods, § 525.030.2(1)(b) introduces a formulaic approach to determine the “multiple” of the federal minimum hourly wage, considering wages subject to garnishment for one week. This formula is as follows: The number of workweeks or their fraction (x) is multiplied by 30, and then by the appropriate federal minimum wage. The application of this formula accommodates varying pay periods, ensuring equitable calculation.

For instance, using the formula, a calendar month equates to 4 1/3 workweeks, and a half-month translates to 2 1/6 weeks. This methodology remains consistent for pay periods exceeding one week. (§ 525.030.2(1)(b).) This comprehensive approach ensures fair limitations on garnishment, accounting for diverse pay structures.

Child Support and Wage Garnishment

Child support garnishment is one of the most common forms of wage garnishment. Typically, child support orders include directives for automatic income withholding. However, if a parent obligated to pay child support accrues arrears, a garnishment procedure can be initiated:

• Importantly, child support garnishments usually take precedence over other permissible garnishments, except when wage garnishment is already in place against the employer;
• It’s essential to understand that Missouri’s rules regarding maximum garnishable earnings do not apply to income withholdings related to child support orders. Missouri legislation expressly states that “limitations on maximum earnings subject to withholding do not apply to court orders for payment of child support.” (See § 525.030.2(2));
• On the federal level, the Consumer Credit Protection Act establishes clear boundaries for wage deductions related to child support court orders. § 1673 of 15 U.S.C. outlines the allowable limits for wage garnishment associated with child support.

Depending on whether the employee supports a spouse or dependent child, such garnishments may amount to between 50% and 60% of the employee’s “disposable earnings” per week. (See 15 U.S.C. § 1673(b)(2)). This legislative foundation ensures precise priority setting and adherence to child support payment obligations.

Protecting Employees from Termination Due to Wage Garnishment

Both federal and Missouri state legislations vigorously shield employees from termination based on the fact that their earnings are subject to garnishment for specific debts. These laws, enshrined in § 1674(a) of 15 U.S.C. and § 525.030.5 RSMo, impose a strict prohibition against firing employees under such circumstances. 

It’s noteworthy that willful violation of this provision under Missouri law is treated as a misdemeanor, punishable by a fine of up to $1,000 or imprisonment for up to one year, as stated in § 15 U.S.C. 1674(b) and § 525.030.6 RSMo.

Get in Touch

If you’re seeking further clarification or have doubts about the intricacies of wage garnishment, don’t hesitate to reach out to us at Dolley Law, LLC. We’re ready to provide comprehensive information and recommendations on this matter. Your legal interests are our priority. Contact us today to address your queries or explore potential solutions.

Conclusion

Navigating the complex landscape of wage garnishment in Missouri requires a comprehensive understanding of the legal framework, rules, and safeguards in place. In this article, we’ve delved into the multifaceted aspects of wage garnishment, shedding light on key points that both debtors and creditors need to grasp.

We’ve dissected the complexities of the wage garnishment process, including the intricate requirements for initiating a wage garnishment court order and subsequent responsibilities for both employers and garnishers. We’ve also highlighted nuances related to exemptions from garnishment and limitations on the garnishment amount.

A significant topic has been child support garnishment, emphasizing its special priority over other permissible garnishments. Federal and state laws converge on the notion that child support obligations are to be fulfilled with precision, safeguarding the interests of both guardian and dependent.

Furthermore, the prohibition against terminating an employee due to wage garnishment underscores the fundamental commitment to protect the rights of workers facing financial hardship. Legal consequences emphasize that such actions are not only ethically unjust, but also subject to significant legal penalties.

In order to navigate the dynamic situation involving wage garnishment in Missouri, having competent attorneys by your side is crucial. At Dolley Law, LLC, we’re prepared to offer comprehensive recommendations, address your concerns, and provide strategic solutions tailored to your unique circumstances. Whether you’re a creditor seeking to uphold your rights or a debtor striving to understand and protect your rights, our attorneys are always ready to assist.

In Missouri, clarity and competence are your foremost allies. Arm yourself with accurate information and personalized legal advice to confidently navigate these intricate waters. Reach out to us today at Dolley Law, LLC, and let our expertise and dedication guide you to well-informed decisions and optimal outcomes. Your financial well-being and legal protection are of paramount importance, and we’re here to help you secure both.