Wage Garnishment

Wage Garnishment

Senate Bill 106 would have forced employers to garnish the wages of their workers who have incurred commercial debt for their personal side businesses. The employer would then have to forward the money collected to the other business owed the debt.

The Small Business Chamber believes that a small business should not be forced to become a bill collector for another company’s debt collection problem. Being forced to garnish an employee’s wages:

– would cause a morale problem with that employee
– may cause that employee to quit to avoid the garnishment
– would certainly add to administrative work load
– could expose the business to unforeseen liabilities

On April 1, 2003, thanks to the strong lobbying effort by the Small Business Chamber, S.106 was defeated in the Senate Judiciary Committee.