When a particular amount is directly deducted in employees pay check, either voluntarily or involuntarily, and paid to a third person is known as Wage assignment. Like defaulted student loan, debt obligation or any other types.
In voluntary wage assignment, the employee directly asks the higher authority to deduct sum of his pay and pay it to the concerned party. Here, the concerned party can be his/ her family too.
In involuntarily wage assignment, the employer performs the same act. However, here the concern of the employee if not asked. These type of assignment is eligible only after seeking a prior court permission to do so. Also known as Wage garnishment.
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