A wage assignment is a way for an employee to directly pay back a debt taken out of their paychecks. This type of arrangement can be voluntary or involuntary, with an involuntary arrangement being referred to as a wage garnishment. In either case, there are legal requirements that employers and debt collectors must follow for the assignment or garnishment to be effective.

For voluntary wage assignments, the arrangement is often structured between the employer and employee, outside of the court system. This can refer to an agreement for regularly deducting wages from an employee to pay back a loan or another type of debt. The employer will work with the employee to arrange the deductions from their paycheck to ensure that the debt is paid back in a timely way.

Involuntary wage garnishments, however, come into effect when the employer has received a court order to deduct wages from an employee’s paycheck to cover a debt. This usually happens when an employee has failed to pay a bill, such as a loan or services rendered. In this case, the wages must be deducted until the debt is paid off in full, as per the court order.

Overall, wage assignments and wage garnishments are both types of arrangements that can help employers and employees to pay back debts in an efficient and straightforward way. Before entering into any wage assignment agreement, employers and employees alike should be aware of the legal requirements for wage deductions to ensure that the arrangement is legitimate.