Legal Definitions - wage-withholding order

A wage-withholding order is a legal directive issued by a court or administrative agency that compels an employer to deduct a specified amount of money directly from an employee's wages or salary. These deducted funds are then sent to a designated recipient, typically to satisfy a financial obligation owed by the employee. This mechanism ensures regular payment for debts such as child support, alimony, unpaid taxes, or court-ordered judgments.

Here are some examples of how a wage-withholding order might apply:

• Scenario: After a divorce, Emily is ordered to pay monthly alimony to her ex-spouse, Mark. Emily consistently misses payments. Mark petitions the court, which then issues a wage-withholding order to Emily's employer, "Innovate Solutions Corp."

  Explanation: This order legally requires Innovate Solutions Corp. to deduct the specified alimony amount directly from Emily's bi-weekly paycheck and send it to Mark. This ensures Mark receives consistent financial support as ordered by the court, without relying on Emily to make direct payments.

• Scenario: The Internal Revenue Service (IRS) determines that Robert owes a substantial amount in back federal income taxes. After several notices and attempts to collect the debt, the IRS issues a wage-withholding order (often referred to as a "wage levy" in this context) to Robert's employer, "National Bank."

  Explanation: National Bank is now legally obligated to withhold a portion of Robert's earnings each pay period and remit those funds directly to the IRS until his outstanding tax debt is fully satisfied. This is a common method for government agencies to collect overdue taxes.

• Scenario: A landlord, Ms. Chen, successfully sues her former tenant, David, for unpaid rent and damages, obtaining a court judgment for $5,000. David refuses to pay the judgment. Ms. Chen's attorney obtains a wage-withholding order from the court and serves it on David's employer, "City Construction Co."

  Explanation: City Construction Co. must now deduct a legally permissible percentage of David's wages from each paycheck and send it to Ms. Chen until the $5,000 judgment, plus any accrued interest and court fees, is paid in full. This allows Ms. Chen to collect the money she is legally owed.