If your business employs W-2 workers, chances are you’ve dealt with a wage garnishment. They’re common and can be confusing, especially when something doesn’t seem right and your employee is asking why the deductions haven’t stopped. This article explains what a wage garnishment is, why employers usually can’t stop one on their own, and what to do if a creditor appears to be over-withholding.
What Is a Wage Garnishment?
A wage garnishment is a court-authorized process that requires an employer to withhold part of an employee’s paycheck and send it to a creditor to pay a debt. Once an employer receives an Order of Continuing Lien on Earnings (the formal court order used in Arizona), they are legally required to:
- calculate the non-exempt portion of wages, and
- send those funds to the creditor each pay period.
At that point, the employer becomes what the law calls a garnishee—a neutral third party responsible for handling the withholding.
What Happens When Too Much Is Being Withheld?
Sometimes creditors continue collecting after the judgment is paid or after they’ve already received more than they’re entitled to. An employee asks their employer, “Can’t you just stop withholding?” Usually, the answer is no.
Under Arizona law, the creditor, not the employer, is responsible for making sure the garnishment stops at the right time. Arizona Revised Statutes § 12-1598.12 specifically places the obligation on the creditor to act once the judgment has been satisfied. The creditor must file paperwork to terminate the garnishment. Until that happens, the employer is expected to keep withholding under the order. That’s why even when everyone agrees the balance looks wrong, employers generally cannot stop deductions on their own.
Why Employers Can’t Release a Garnishment Themselves
Employers are protected by law so long as they follow the court’s order exactly as written. But they can face liability if they stop withholding without authorization. In practical terms, that means the employer:
- cannot unilaterally cancel the garnishment,
- cannot decide the judgment has been paid,
- cannot redirect funds back to the employee without court approval.
As garnishee, they must comply with the Order of Continuing Lien and not to interpret whether the creditor has collected enough. The court issued the order, so only the court or the creditor through proper court filings can end it.
What If the Creditor Isn’t Fixing the Problem?
If it looks like the creditor is over-collecting but hasn’t filed a termination, there are ways to address it and they usually involve going back to court. Depending on the situation, options may include:
- requesting clarification from the creditor,
- asking the court to determine the remaining balance,
- filing objections or motions related to the continuing lien, or
- seeking an order directing the creditor to release the garnishment.
These steps are fact-specific and should be handled carefully, because the garnishee’s legal protection depends on following the process correctly.
If the employer is in this position, it’s a good idea to consult a lawyer familiar with Arizona garnishment procedure.
A Reminder About Retaliation
Employers sometimes worry about how garnishments affect workplace dynamics. One important rule to remember. An employer cannot discipline or retaliate against an employee because their wages are being garnished. Both federal and Arizona laws protect employees from adverse action based solely on garnishment. That means no termination, demotion, or penalties just because a creditor obtained a court order affecting the employee’s paycheck.
When to Talk to a Lawyer
If an employer:
- suspects over-withholding,
- is facing a creditor who won’t release a garnishment,
- receives conflicting instructions about deductions, or
- uncertainty about its obligations as garnishee,
It is worth speaking with a collection or employment attorney who handles wage garnishment issues.