Prioritizing Multiple Deductions, Or What Does The Employer Pay First If Theres Not Enough Money To Go Around?
Normally, when an employee is being paid his or her regular earnings, the full amount of the order can usually be withheld. It is only when the paycheck falls short due to special circumstances that the employer may not be able to withhold the full ordered amounts. However, sometimes an employee’s earnings do not stretch far enough to pay all his or her claimants. There are specific laws governing who is to be paid first. There are also laws protecting the employee from having his or her entire paycheck turned over to a third party. The Consumer Credit Protection Act (CCPA) is a federal law that serves as the minimum protection to the employee. The CCPA limits on withholding an employee’s paycheck do not forgive the debt owed.
Related Questions
- Can an employer withhold pay or make deductions from an employees pay for cash shortages, damage to the employers property or for any other such reason?
- I was looking at my pay stub and realized my employer is deducting money for workers′ compensation insurance. Can it do that?
- Would my employer have to pay redundancy money or does he get help from the government?
