The Voice of Business, Industry & the Professions Since 1942
North Carolina's largest business group proudly serves as the state chamber of commerce

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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