Garnished Earnings

• Ohio state law specifies that personal earnings are subject to legal garnishment action. The law defines personal earnings as money that is paid or due to a person in exchange for work, labor or personal services provided by the person to an employer. This includes severance pay. However, federal law usually limits the amount of any earnings that can be garnished to 25 percent of the net amount paid; any earnings less than 30 times the hourly minimum wage are fully exempt. The garnishment can be fully blocked by the creditor not complying with state mandated procedure or by the debtor making other specified payment arrangements.