Title
Implement an administrative fee for employees with wage garnishments.
Body
Recommended Action: Approve the recommendation to implement an administrative fee for employees with creditor garnishment orders, federal tax levies, educational withholding orders, and state tax garnishment orders.
The Human Resource (HR) department has researched the options, regulations, and best practices for deducting an administrative fee from employees garnishment amounts. HR is recommending the implementation of a fee for employees with income withholding, excluding child support and bankruptcies. These fees would be a way to partially offset the costs paid by the County to administer garnishments. The fee is a regulatory means to receive partial reimbursement for time spent working with third party requesting agencies, employees, paperwork, and data entry as well as for paper, stamps, envelopes, and check printing costs.
Analysis: HR has reviewed regulations, consulted with professional resources, conducted a survey of local organizations, and outlined cost/fee structures. Based on the information received, the recommendation is to pursue obtaining the maximum rate allowable by regulation for each type of garnishment listed in the recommended action. The fee would be taken via payroll deduction.
Alternatives: The County may choose to continue administering garnishments without a fee or with a fee below the maximum allowed by regulation. However, the recommendation has a considerable financial impact if approved.
Financial Considerations: The approximate cost in administering garnishments throughout a budget year is $16,000 (employee support and supplies). Approximately $12,000 per year could be obtained by implementing the proposed recommendation.
Legal Considerations: This recommendation has been reviewed by the Sedgwick County Counselors Office.
Policy Considerations: There are no policy implications affected by approving this recommendation.