It’s not fun to process garnishments, but it’s got to be done. That’s the harsh lesson learned by one firm. Prodantis, Inc. received a garnishment order against one of its workers from United Student Aid Funds, a student loan guaranty agency. The order required Prodantis to withhold 15% of the employee’s pay (nearly $645).

When Prodantis failed to withhold, USAF sued. 

Bad news for Prodantis: Any employer that fails to follow a garnishment order from a student loan guaranty is liable for the amount of the garnishment — as well as attorney’s fees, costs and possibly punitive damages. 

Even though Prodantis admitted liability, the court ruled that USAF was entitled to $6,300 — almost 10 times the original garnishment amount. 

Rubbing salt in the wound: The court also awarded to USAF pre-judgment interest of $27 and post-judgment interest until it receives full payment. 

Tags: Court rulings, Garnishments, Payroll, Penalties