Human Resources 
Policies & Procedures 
Illinois Institute of Technology		 Policy No. D. 7.00 

Date of Issue 8/97
 

Subject: Wage Actions Against Employees 

Demands for payment to creditors from an employee's pay are honored to the extent required by state and federal law.
7.01 Notice of wage demand is usually received in Human Resources. If it is received elsewhere in the university, it should be sent to that office. The employee is advised of the demand through campus mail. If the employee is not able to receive campus mail directly, the IIT notice is mailed to his or her home by certified mail. The form states the name of the creditor, the amount claimed and whether the demand is based on a wage deduction or a wage assignment. In the case of an IRS levy, the employee is notified immediately by telephone. If asked, supervisors should refer employee questions to Human Resources. Illinois law prohibits an employer from taking any adverse action against an employee whose wages are subject to a demand.
 
7.02 Wage Deduction 

This demand is issued pursuant to a court order after a judgment has been entered by the court against the debtor. It is almost always honored since there are no defenses to enforcement other than a bankruptcy action. Withholding is limited by law, usually to 15% of the employee's gross pay for a period of 12 weeks. 
 

7.03 Wage Assignment 

This demand is based on a wage assignment executed by the employee to secure a debt. To be honored, a wage assignment must comply with several requirements of the law:
  
a. The employee must receive a notice, at least 20 days prior to the demand, that the creditor intends to make a demand on his or her wages.
 
b. The notice and the demand are examined to determine if all statutory requirements are met. If found to be in compliance, payment is limited by law, usually to 15% of the employee's gross pay for a period of 84 days.
 
b. If the employee claims the demand is not valid, he or she may complete a form available in Human Resources giving the University notice of a defense to the claim. If an employee submits a notice of defense, the demand will not be honored. An employee who provides false information in the notice of defense may be liable to a creditor in a lawsuit.
 

7.04 Child Support 

When served with a certified order for withholding, payment is withheld pursuant to the court order. This order takes priority over all other wage actions except tax levies.
 

7.05 Internal Revenue Service Levy 

This demand is always honored, and the employee is allowed to retain a minimum amount of earnings per applicable federal law. Human Resources may refer the employee to the IRS to inquire about a payment schedule and a release of the levy.
 

7.06 State Tax Levy 

This demand is similar to the IRS levy and is processed in accordance with Illinois law.
  

 

 
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