Tuition reimbursement cannot be factored into wage garnishment, DOL says

By Caroline Colvin

Tuition reimbursement cannot be factored into wage garnishment, DOL says

The query originally asked whether a payment of up to $5,250 in educational benefits constituted earnings under the CCPA. Looman said that "wages, salaries, commissions, and bonuses" -- which are directly correlated to an employee's services -- count as earnings.

Therefore, "if such educational benefits do not constitute earnings for purposes of the CCPA's limitations on wage garnishment, an employee subject to a garnishment order and to whom those limitations apply will have lower overall earnings under the CCPA and may have a smaller amount garnished from their pay," Looman wrote.

The letter reiterated that employer-provided tax-free educational assistance programs are not earnings under the act and are "not included when applying the CCPA's garnishment limitations."

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