§ 24-4.5-5-105 — Limitation on garnishment and proceedings supplemental to execution; employer's fee

(1) For the purposes of IC 24-4.5-5-101
through IC 24-4.5-5-108:
(a) "disposable earnings" means that part of the earnings of an
individual, including wages, commissions, income, rents, or
profits remaining after the deduction from those earnings of
amounts required by law to be withheld;
(b) "garnishment" means any legal or equitable proceedings
through which the earnings of an individual are required to be
withheld by a garnishee, by the individual debtor, or by any other
person for the payment of a judgment; and
(c) "support withholding" means that part of the earnings that are
withheld from an individual for child support in accordance with
the laws of this state.
(2) Except as provided in subsection (8), the maximum part of the
aggregate disposable earnings of an individual for any workweek which
is subjected to garnishment to enforce the payment of one (1) or more
judgments against the individual may not exceed the lesser of the
following amounts:
(a) An amount equal to twenty-five percent (25%) of the
individual's disposable earnings for that week or, upon a showing
of good cause by the individual why the amount should be
reduced, an amount equal to:
(i) less than twenty-five percent (25%); and
(ii) at least ten percent (10%);
of the individual's disposable earnings for that week.
(b) The amount by which the individual's disposable earnings for
that week exceed thirty (30) times the federal minimum hourly
wage prescribed by 29 U.S.C. 206(a)(1) in effect at the time the
earnings are payable.
In the case of earnings for a pay period other than a week, the earnings
shall be computed upon a multiple of the federal minimum hourly wage
equivalent to thirty (30) times the federal minimum hourly wage as
prescribed in this section.
(3) The maximum part of the aggregate disposable earnings of an
individual for any workweek which is subject to garnishment or
support withholding to enforce any order for the support of any person
shall not exceed:
(a) where such individual is supporting the individual's spouse or
dependent child (other than a spouse or child with respect to
whose support such order is used), fifty percent (50%) of such
individual's disposable earnings for that week; and
(b) where such individual is not supporting such a spouse or
dependent child described in subdivision (a), sixty percent (60%)
of such individual's disposable earnings for that week;
except that, with respect to the disposable earnings of any individual
for any workweek, the fifty percent (50%) specified in subdivision (a)
shall be deemed to be fifty-five percent (55%) and the sixty percent
(60%) specified in subdivision (b) shall be deemed to be sixty-five
percent (65%), if and to the extent that such earnings are subject to
garnishment or support withholding to enforce a support order with
respect to a period which is prior to the twelve (12) week period which
ends with the beginning of such workweek.
(4) No court may make, execute, or enforce an order or process in
violation of this section.
(5) An employer who is required to make deductions from an
individual's disposable earnings pursuant to a garnishment order or
series of orders arising out of the same judgment debt (excluding a
judgment for payment of child support) may collect, as a fee to
compensate the employer for making these deductions, an amount
equal to the greater of twelve dollars ($12) or three percent (3%) of the
total amount required to be deducted by the garnishment order or series
of orders arising out of the same judgment debt. If the employer
chooses to impose a fee, the fee shall be allocated as follows:
(a) One-half (1/2) of the fee shall be borne by the debtor, and that
amount may be deducted by the employer directly from the
employee's disposable earnings.
(b) One-half (1/2) of the fee shall be borne by the creditor, and
that amount may be retained by the employer from the amount
otherwise due the creditor.
The deductions made under this subsection for a collection fee do not
increase the amount of the judgment debt for which the fee is collected
for the purpose of calculating or collecting judgment interest. This fee
may be collected by an employer only once for each garnishment order
or series of orders arising out of the same judgment debt. The employer
may collect the entire fee from one (1) or more of the initial deductions
from the employee's disposable earnings. Alternatively, the employer
may collect the fee ratably over the number of pay periods during
which deductions from the employee's disposable earnings are
required.
(6) The deduction of the garnishment collection fee under
subsection (5)(a) or subsection (7) is not an assignment of wages under
IC 22-2-6.
(7) An employer who is required to make a deduction from an
individual's disposable earnings in accordance with a judgment for
payment of child support may collect a fee of two dollars ($2) each
time the employer is required to make the deduction. The fee may be
deducted by the employer from the individual's disposable earnings
each time the employer makes the deduction for support. If the
employer elects to deduct such a fee, the amount to be deducted for the
payment of support must be reduced accordingly if necessary to avoid
exceeding the maximum amount permitted to be deducted under
subsection (3).
(8) A support withholding order takes priority over a garnishment
order irrespective of their dates of entry or activation. If a person is
subject to a support withholding order and a garnishment order, the
garnishment order shall be honored only to the extent that disposable
earnings withheld under the support withholding order do not exceed
the maximum amount subject to garnishment as computed under
subsection (2).
Formerly: Acts 1971, P.L.366, SEC.6. As amended by Acts
1979, P.L.239, SEC.1; Acts 1982, P.L.151, SEC.1; P.L.248-1983,
SEC.1; P.L.237-1985, SEC.1; P.L.102-1986, SEC.3; P.L.148-1988,
SEC.1; P.L.78-2014, SEC.2.