Legal Definitions - wage-assignment order

A wage-assignment order is a legal document that requires an employer to withhold a portion of an employee's wages to pay off a debt. This is similar to an income-withholding order, which is used to collect child support or spousal support payments.

For example, if someone owes money to a creditor and has not been making payments, the creditor may obtain a wage-assignment order to collect the debt. The employer will then deduct a certain amount from the employee's paycheck and send it directly to the creditor until the debt is paid off.

Another example is if a person falls behind on their student loan payments. The lender may obtain a wage-assignment order to collect the debt. The employer will then deduct a certain amount from the employee's paycheck and send it directly to the lender until the debt is paid off.

These examples illustrate how a wage-assignment order can be used to collect debts from an employee's wages. It is important to note that there are limits to how much can be withheld from an employee's paycheck, and the employer must follow certain procedures when implementing a wage-assignment order.