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Wage Garnishments Kentucky

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  • Wage Garnishments Kentucky

    I have looked up the statutes, and from what I can gather in the state of Kentucky an employee's employment is protected if one wage garnishment is received, but they may be terminated if we receive additional orders. Actually, I believe Kentucky is silent on the matter and it falls under the Federal laws.

    I am not a fan of terminating someone for multiple wage garnishments, however, I have one employee in particular that this has become an administrative nightmare. He has a child support order already in place. Then we received a garnishment order from a car loan. Then we received another garnishment order for unpaid cash advance loans (that one actually had to be put on hold, because there was no longer enough disposable income to institute it at this time. That means we have to actually estimate when the car loan deduction will be paid off, then keep track of it so we can immediately put the cash advance loan garnishment in effect). Today, we received an IRS garnishment.

    I have two questions:

    - Do any of you have experience with employees that have MULTIPLE wage garnishments? How does your organization handle those?
    - Would the employee be eligible for unemployment benefits if we do decide to terminate his employment? (Does not taking care of your personal business equal misconduct?)

    Thanks for any help!

  • #2
    Luckily I work in TX where we only deal with IRS taxes and child support. So no, we can't or don't terminate.

    That said, we can charge an administrative fee for processing, but don't.

    I'd be more concerned about whether the employee had access to company funds (via company credit card, etc). If he did, it would make a huge difference in my decision. Also, it is hard to think that his job performance might not be affected by this. Because obviously this employee is having financial issues. I'd probably bring him in for a discussion on how he can solve his personal problems without involving the employer. If he had a plan, I would work with him. If he blew me off, I would let him go. But I do hate to kick a guy when he is down and if he is performing well.

    As to whether he would get unemployment, I don't know about Kentucky but even in employer-friendly TX, I think he would.

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    • #3
      Ky. does have a statute re wage garnishment & termination:

      Employers may not discharge employees because their earnings have been subjected to garnishment for any one indebtedness. The statute doesn't protect against discharge when employees are subject to garnishment for more than one indebtedness. KRS 427.140 & OAG 78-433
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