Wage Garnishment
Position: NCCBI believes that employers
should not be unnecessarily involved in their employees’ private
business affairs or be burdened with the administrative time and
expense of collecting debts for their employees’ creditors and
forwarding payroll payments to various clerks of court throughout the
state. For this reason, NCCBI opposes any expansion of existing North
Carolina law regarding when creditors may garnish an employee's wages
in order to collect a debt.
Explanation: Currently, garnishment is
allowed in North Carolina for the recovery of child support and public
debts, such as taxes and charges for hospital and ambulance services.
Under these laws, North Carolina employers are burdened by the
administrative time and expense required to carry out garnishment
orders. Expansion of existing North Carolina law to allow creditors to
garnish an employee's wages to satisfy judgments would cause
additional undue administrative burden and expense for employers. No
administrative fee would be adequate to reimburse employers for the
administrative burden and expense or the negative impact on the
employer/employee relationship caused by withholding garnished wages.
The collection of such a fee, in and of itself, poses a real risk of
causing animosity by employees toward their employers. moreover,
employers are opposed to becoming unnecessarily involved in the private
business affairs of their employees, which also will cause instability
in the employer/employee relationship, to the extent of encouraging
"job hopping" by employees. NCCBI believes any expansion of
the garnishment laws in North Carolina would unduly
burden all employers, but
that small employers in particular would suffer a hardship by having to invest
administrative time to garnish wages and to bear the costs of
implementing the garnishments.
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