HEADS UP: Wage Garnishment Changes

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Heads up to Illinois employers - the State's changing wage deduction rules.

The Governor’s getting a piece of proposed legislation on his desk this morning that would alter post-judgment enforcement. The changes notably include:

- Removing the judicial discretion in wage-deduction orders – deductions would automatically be the lesser of (a) 15% of the weekly gross income or (b) the amount of net income above 45 times the current minimum wage (which just went up to $7.50).

- Allowing judgment creditors the option of taking conditional judgments against employers who stop deducting wages without a valid excuse, but the bill would also require creditors to certify the remaining balance in garnishment proceedings before the employers are obligated to pay.

- Changing the employer fee from either $12 or 2% to just 2%. No option.

If the bill gets signed it will go into effect Jan. 1, 2008.

Illinois Senate Bill SB0229

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