By Global Pay Compliance Desk · Minneapolis, MN · General information, not legal advice
Department of Education and guaranty agencies reissue AWG withholding orders following the conclusion of pandemic relief extensions.
Employers are receiving new Administrative Wage Garnishment (AWG) directives from the Department of Education. Under the Higher Education Act, employers must withhold up to 15% of disposable pay per order, not to exceed a combined 25% for multiple student loan orders. Orders require prompt acknowledgement within 20 days to prevent institutional liability.
Arizona’s 2026 minimum-wage increase raises the protected earnings floor on creditor wage garnishments. Withhold the lesser of 10% of disposable earnings or the amount above 60 times the highest applicable minimum wage.
California piloting electronic service of garnishments to employers
The Federal Office of Child Support Services (OCSS) expands real-time electronic income withholding order protocols, accelerating child support processing speeds nationwide.
Questions about how this affects your payroll? We will walk through your active orders.
