Can You Get a New Job While Being Garnished?

A wage garnishment is a collection strategy that a creditor may use in most states after obtaining a judgment against you for an unpaid debt. This strategy involves directing your employer to withhold part of your earnings for payment against your judgment debt. Not only does a wage garnishment reduce your take-home pay, it may also affect your ability to find a new job.

Judgment

In most cases, a wage garnishment can only follow a civil judgment. Except for cases involving unpaid alimony, taxes or child support, creditors must file and win a lawsuit against you for a debt, then apply to the court that issued the judgment for a writ of garnishment. Although a prospective employer typically will not inquire about garnishments, its hiring manager may look for evidence of a judgment, which can indicate that you are subject to or in danger of a wage garnishment.

Job Application

Employment applications typically require disclosure of unpaid judgments -- if you are subject to a garnishment for an unpaid judgment, you must disclose the judgment on your job application. Failure to disclose an unpaid judgment can suffice as grounds for termination if the company hires you; however, disclosing the judgment can cause the employer's hiring staff to pass you over for an interview.

Background Checks

Employers commonly run background checks on prospective employees before making a firm employment offer. A background check may involve obtaining your consumer credit report and public records, both of which typically contain information about civil judgments. Even if you do not disclose a judgment on an employment application, your prospective employer may learn about the judgment from your background report. The employer may then choose to rescind any tentative job offer it has extended to you.

Reasoning

Employers may refuse to hire you after learning about an unpaid judgment or garnishment for several reasons. In the eyes of an employer, a judgment reflects a lack of financial responsibility, which may increase the employer's risk of dealing with embezzlement. An unpaid judgment also suggests financial distress, which means that your money worries may distract you from effectively fulfilling your job duties. Wage garnishments also cost an employer time and money; the employer's payroll staff must take extra time to answer a writ of garnishment, calculate withholding of your earnings and send withheld funds to the court for payment against your judgment debt.