Can overtime pay be garnished by a debt collector?

MoneyWatch: Managing Your Money Can overtime pay be garnished by a debt collector? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht June 1, 2026 / 11:08 AM EDT / CBS News Add CBS News on Google A garnishment order can have a big impact on your paycheck, but can it eat into your overtime earnings, too? Mohd Azrin/Getty Images In today's economic landscape, overtime has become an important financial tool for millions of Americans. After all, inflation isn't just high; it's rising rapidly, meaning that the cost of everything from groceries to gas and housing is climbing rapidly right now, stretching budgets thin. Other economic hurdles are looming, too, like a tough job market and high borrowing rates. So, whether it's used to cover higher living costs, pay down credit card balances or rebuild savings after an unexpected expense, those extra hours are providing people with a much-needed boost to their household budgets.At the same time, many borrowers are carrying significant debt, even as compound interest racks up quickly at today's high average rates. While many borrowers can still keep up with the minimum payments, some have fallen far enough behind on their debt that they're no longer just dealing with phone calls and letters about their unpaid obligations. They're facing more serious collection actions, like bank levies and wage garnishment instead. And, when wage garnishment enters the picture, money can be tak...