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  1. #1
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    May 2018
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    Default Illegal Wage Garnishment Provision in an Employment Contract

    My question involves labor and employment law for the state of: Pennsylvania

    I signed a training contract for my job and am leaving early so I will owe money back per the contract ($14000 is the prorated amount I owe). In the contract it says I have 30 days to pay back the full amount or they can garnish my wages at a rate of $1500 a month for 12 months. However, I have recently discovered that Pennsylvania has very restrictive wage garnishment rules and basically doesn't even allow it except for student loans and child support. My employer has threaten me several times with the wage garnishment if I don't pay it all back. So my question is can he garnish my wages because I signed the contract even though state law says no? Id assume state law would prevail here. If so is this whole contract technically null and void because of the illegal sub clause? Id assume he could still sue me for it which is why I still plan on making a fair deal with him but $14000 is almost half my salary! Thanks for any help.

  2. #2
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    Oct 2006
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    Default Re: Illegal Wage Garnishment Provision in an Employment Contract

    Quote Quoting austin27
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    My question involves labor and employment law for the state of: Pennsylvania

    I signed a training contract for my job and am leaving early so I will owe money back per the contract ($14000 is the prorated amount I owe). In the contract it says I have 30 days to pay back the full amount or they can garnish my wages at a rate of $1500 a month for 12 months. However, I have recently discovered that Pennsylvania has very restrictive wage garnishment rules and basically doesn't even allow it except for student loans and child support. My employer has threaten me several times with the wage garnishment if I don't pay it all back. So my question is can he garnish my wages because I signed the contract even though state law says no? Id assume state law would prevail here. If so is this whole contract technically null and void because of the illegal sub clause? Id assume he could still sue me for it which is why I still plan on making a fair deal with him but $14000 is almost half my salary! Thanks for any help.
    Half of your yearly salary? If so, then its possible that a court would throw out the agreement as unenforceable based on the amount alone. What is your industry and what kind of training did you receive?

  3. #3
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    Default Re: Illegal Wage Garnishment Provision in an Employment Contract

    Quote Quoting llworking
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    Half of your yearly salary? If so, then its possible that a court would throw out the agreement as unenforceable based on the amount alone. What is your industry and what kind of training did you receive?
    Im a low time pilot. The training was for the the initial type rating for the jet I fly. Im leaving to go back to flight instruction in small planes so I can build time much faster and go to the airlines. But yes I will be taking a pay cut for sure Ill probably make 35k (Will go up once I get to the airlines).

  4. #4
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    Default Re: Illegal Wage Garnishment Provision in an Employment Contract

    Is your current employer the entity you owe the $14,000 to or do you work for somebody other than who you owe the money to?

    If you work for the entity you owe money to, given they have a signed authorization to withhold the money, they could probably withhold it

    if you work for an entity other than to whom you owe the money to; do you believe your employer would actually withhold money from your check without a judgment and a court’s order to withhold the money?

    The amoint owed compared to your income is irrelevent. If you signed a contract that obligates you to repay the money, chances are you will be required to repay it.

  5. #5
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    Default Re: Illegal Wage Garnishment Provision in an Employment Contract

    There is no contract you can sign that would allow them to garish that much of your income from another employer. Even if they sue you and get a judgement the maximum they would be able to garnish is 25% of income or 30 time minimum wage.

  6. #6
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    Default Re: Illegal Wage Garnishment Provision in an Employment Contract

    Quote Quoting jk
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    Is your current employer the entity you owe the $14,000 to or do you work for somebody other than who you owe the money to?

    If you work for the entity you owe money to, given they have a signed authorization to withhold the money, they could probably withhold it

    if you work for an entity other than to whom you owe the money to; do you believe your employer would actually withhold money from your check without a judgment and a court’s order to withhold the money?

    The amoint owed compared to your income is irrelevent. If you signed a contract that obligates you to repay the money, chances are you will be required to repay it.
    Let me clarify sorry! It is a 2 year contract and I am quitting early so I will have to pay it back. I got a new job. Employer thinks he can basically take my whole entire paycheck at my next job until it is paid off in full because I signed a contract that says he could. (Idiotically)

    Quote Quoting PayrolGuy
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    There is no contract you can sign that would allow them to garish that much of your income from another employer. Even if they sue you and get a judgement the maximum they would be able to garnish is 25% of income or 30 time minimum wage.
    Yes so that is my question. In PA they aren't even allowed to garnish my wages at all. So is this contract technically void?

  7. #7
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    Default Re: Illegal Wage Garnishment Provision in an Employment Contract

    No it is not technically void. You will likely continue to owe the money until you pay it.

    I would have to verify it but typically an employer cannot withhold anything from your pay (other than the statutory withholdings or that a court orders (garishment would fall under this)) unless you authorize the withholding. That means your future employer cannot withhold money from your pay to forward to the current employer unless you authoriize it. So, just don’t authorize the withholding.

    Your current employer can sue you and presumably obtain a judgment against you. It doesn’t sound like your wages can be garnished for the resulting judgment.

    Your current employer can take all other lawful actions to collect on the judgment though. It will also show up on your credit report as well. That will screw with obtaining credit and it could screw with your employment.

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