If an employer does not garnish wages for child support as ordered, they face significant legal and financial repercussions, as they are legally obligated to comply with valid income withholding orders.
Employer's Legal Obligation to Garnish Wages
When a child support order is established, an Income Withholding Order (IWO) is typically issued to the non-custodial parent's employer. This order legally mandates the employer to deduct specific amounts from the employee's wages and send them to the appropriate child support agency or custodial parent. Employers act as a vital link in the child support enforcement system, serving as a pass-through entity to ensure regular payments.
Serious Consequences for Non-Compliance
Employers who do not withhold and send child support payments as ordered are subject to penalties in every state. These may include repayment of the amount of the child support plus penalties and fines.
Financial Penalties and Liability
- Repayment of Unpaid Support: An employer can be held directly liable for the full amount of child support they failed to withhold and remit. This means they might have to pay the missed support payments out of their own company funds.
- Fines and Penalties: State laws impose specific monetary fines for each instance of non-compliance, which can accumulate rapidly. These fines vary by state but can be substantial. For example, some states might impose a fine for each paycheck where deductions were not made or remitted correctly.
- Legal Fees: If legal action is taken, the employer may also be responsible for covering the legal fees incurred by the child support agency or the custodial parent.
Legal Action and Contempt of Court
- Lawsuits: The state child support enforcement agency or the custodial parent can sue the employer directly to enforce the IWO and recover unpaid support.
- Contempt of Court: Willful failure to comply with an IWO can result in an employer being held in contempt of court. This can lead to additional fines, and in severe or repeated cases, even imprisonment, though this is rare and typically reserved for extreme defiance.
- Administrative Actions: In some jurisdictions, persistent non-compliance could lead to administrative penalties, such as the suspension or revocation of business licenses.
Reputation Damage
Failure to comply with legal obligations like child support garnishment can damage an employer's reputation. This can affect employee morale, public perception, and potentially lead to difficulties in attracting and retaining talent.
Impact on the Employee (Non-Custodial Parent)
It's crucial to understand that even if the employer fails to garnish wages, the employee (non-custodial parent) still owes the child support. The missed payments will accumulate as arrears, which can lead to:
- Accumulated Debt: The employee's child support debt continues to grow.
- Further Enforcement Actions: The child support agency may pursue additional enforcement actions against the employee, such as:
- Wage garnishment from a new employer.
- Tax refund interception.
- Driver's license or professional license suspension.
- Lien on property.
- Credit reporting of arrears.
Impact on the Custodial Parent and Child
The most immediate impact is on the custodial parent and child, who are deprived of essential financial support. This disruption can cause significant hardship, affecting the family's ability to cover basic living expenses, healthcare, and educational needs.
What to Do If an Employer Fails to Garnish Wages
For the Custodial Parent:
- Contact the Child Support Agency: Immediately notify your state's child support enforcement agency (CSE). Provide them with all relevant details, including the employer's name, address, and contact information.
- Provide Documentation: Share any documentation you have, such as the IWO or pay stubs if available, showing that deductions are not being made.
- Agency Intervention: The CSE agency will investigate the matter, re-issue orders, and initiate enforcement actions against the non-compliant employer on your behalf.
For the Employee (Non-Custodial Parent):
- Communicate with Employer: First, try to speak with your employer's payroll or HR department to understand why the garnishment isn't happening. It could be an oversight.
- Contact Child Support Agency: If the employer remains non-compliant, contact your state's child support enforcement agency. Explain the situation and provide details about your employer.
- Make Direct Payments: To avoid accumulating arrears and further enforcement actions against yourself, consider making direct child support payments to the child support agency until the garnishment issue is resolved. Keep meticulous records of all payments.
Employer Best Practices for Compliance
To avoid legal and financial penalties, employers should prioritize compliance with income withholding orders:
- Prompt Implementation: Implement IWOs immediately upon receipt. Most states require implementation within a specific timeframe (e.g., 10-15 business days).
- Accurate Deductions: Ensure the correct amount is deducted, considering any limits on wage garnishment as per the Consumer Credit Protection Act (CCPA).
- Timely Remittance: Send the withheld payments to the specified agency or recipient promptly.
- Maintain Records: Keep accurate and detailed records of all withholdings and remittances for future reference or audits.
- Communicate Changes: Notify the child support agency immediately if the employee terminates employment or if there are changes to their employment status (e.g., leave of absence).
- Seek Guidance: If unsure about an IWO or state-specific requirements, consult with the child support agency or a legal professional.
Summary of Consequences for Non-Compliant Employers
| Type of Consequence | Description |
|---|---|
| Financial Liability | Employers may be liable for the full amount of child support they failed to withhold and remit. |
| Fines & Penalties | State laws impose specific monetary fines for each instance of non-compliance, which can accumulate. |
| Legal Action | Employers can be sued by child support agencies or individuals, potentially leading to court orders, contempt charges, or administrative sanctions like license suspension. |
For more information on income withholding and employer responsibilities, resources like the federal Office of Child Support Enforcement (OCSE) provide valuable guidance. You can find general information about employer FAQs regarding income withholding at www.acf.hhs.gov. You can also find information about your specific state's child support laws by searching for your state's "child support agency" online.
