Wage Garnishment

Economics Glossary – Malone Global University

Definition

Wage garnishment is a legal process where part of a worker’s paycheck is withheld by an employer and sent directly to a creditor or agency to repay a debt or obligation.

Why It Matters

It can reduce take-home pay significantly and is often triggered by unpaid debts, taxes, or court orders.

Example

A court orders wage garnishment to collect overdue child support payments.

Related Terms

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