Wage Assignment
A wage assignment is a private transaction between the employee and the creditor wherein an employee transfers his right to collect all or part of his wages to a creditor. The federal garnishment restrictions would therefore not apply to wage assignments. If a legal proceeding to enforce a wage assignment results in a judgment with an accompanying garnishment order, the federal order would apply.
Some states place a limit on the amount of wages that may be assigned by an employee; other states expressly declare wage assignment void.
