Involuntary and Voluntary Pay Deductions: Minnesota
Federal law and guidance on this subject should be reviewed together with this section.
Author: Megan Anderson, Gray Plant Mooty
- If an employer receives an income withholding order (IWO) for child support against the wages of an employee, it must begin withholding no later than the first pay period that occurs after 14 days following the date it received the order. Payments of amounts withheld, which are subject to certain limits, must be submitted within seven days after payday and may be submitted online. Employers may be subject to serious penalties for noncompliance. See Child Support Withholding.
- Minnesota employers must comply with wage garnishment orders that require the withholding and payment of an employee's earnings to satisfy an employee's obligations to a creditor. The amount of an employee's aggregate disposable earnings that can be subject to garnishment for any pay period is limited. Employers must follow certain procedures in order to comply with a garnishment order and avoid court sanctions for violations. See Creditor Garnishment Withholding.
- In Minnesota, no assignment of wages by an employee is valid unless certain conditions are met. See Voluntary Wage Assignments.
- The Minnesota Department of Revenue may levy an employee's wages to collect an unpaid tax or other state agency debt. Up to 25 percent of an employee's disposable earnings may be withheld to satisfy a levy. Employers must follow certain procedures when a levy is received in order to remain in compliance.See Tax Levies.