Tuition reimbursement cannot be factored into wage garnishment, DOL says

The inquiry initially asked whether a repayment of approximately $5,250 in educational benefits comprised earnings under the CCPA. Looman said that “incomes, wages, rewards, and commissions”– which are straight correlated to a worker’s solutions– matter as earnings.

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“if such academic advantages do not constitute earnings for purposes of the CCPA’s limitations on wage garnishment, a worker topic to a garnishment order and to whom those restrictions use will have lower total revenues under the CCPA and may have a smaller amount garnished from their pay,” Looman composed.

Tuition compensation is increasingly an advantage used by companies to win the war for skill. Under the Non-mortgage Consumer Debt Defense Act, the Wage and Hour Division believes that tuition compensation doesn’t equate to earnings.
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Prior to this, the WHD released a viewpoint letter in 2019 pertaining to whether employer payments to wellness interest-bearing accounts are earnings under the CCPA. Similar to tuition reimbursement, in the eyes of the DOL, these employer-provided benefits also may not be treated as incomes.

The WHD has actually noted that Title III of the CCPA prevents companies from “discharging an employee whose revenues have actually been subject to garnishment for any kind of one financial obligation, no matter the variety of levies made or procedures offered collect it.”