Louisiana Garnishee Laws

Garnishment is the process by which a creditor obtains a court order to intercept part of an employee's paycheck and use it to satisfy an outstanding debt. Though federal law acts as the ultimate legal authority that provides Big Picture guidance to the garnishment process, Louisiana also has well-developed rules that function to make sure all parties are being served as fairly as possible. The process of garnishment begins when a creditor declares in court that he is owed a valid debt and has exhausted other options for collection.

Exempt Income

While the creditor and debtor are the initial two parties to garnishment proceedings, there is a good chance that a third party, know as the garnishee, will be forced to become involved, especially if the debtor is employed. As garnishee, an employer is bound by law to collect and remit the portion of income earned by a debtor that is legally at risk. However, the garnishee should be aware that certain kinds of income, such as retirement benefits and pensions, as well as most types of accident, disability or health insurance payouts are not subject to garnishment.

Garnishment Limit

Garnishees also should be aware of the legal limit, imposed by federal and state statutes, on the portion of paycheck that can be held by court order. There are two controlling limits in Louisiana. The employer should use whichever method results in a lessor payment. The first method states that 25 percent of an employee's paycheck can be taken, while the second method allows the harvest of any amount earned in a week that exceeds 30 times the federal minimum wage.

Court Order

A garnishee should never begin taking earnings and remitting them to a creditor without having in his possession a Writ of Garnishment. For a garnishment to proceed in Louisiana, there first must be a judgment in place from the court that decrees the debt valid. After that, the creditor must ask for the issuance of a Writ of Garnishment. Only with such a writ in hand and believed to be valid should the employer begin holding back wages.

Legal Help

The garnishee, unfortunately, finds himself stuck in the middle of what can be an uncomfortable situation, especially if he has a good working relationship with an employee who is being garnished. If at any point during the process he is unclear about his legal obligations, it would be a great idea to consult with an attorney who is familiar with the law and who could offer guidance.