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Run the Payroll Fee Auditor →Blog · Payroll Management · Engineering
Engineering & Professional Services Firms: Payroll Garnishments: What You Need to Know (2026)
Garnishments in engineering firms follow the federal Consumer Credit Protection Act limits, 25 percent of disposable earnings or the amount above 30 times the federal minimum wage, whichever is less, with the engineering firm twist that prevailing wage for government projects and billable hour payroll allocation count as earnings. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
The federal limits
Title III of the Consumer Credit Protection Act caps ordinary garnishments at the lesser of 25 percent of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, $217.50 a week at $7.25. Child support orders can reach 50 to 65 percent, and tax levies and bankruptcy orders have their own tables. Disposable earnings are gross pay less legally required deductions, not less voluntary ones like a 401(k) or health premium.
What counts as earnings in an engineering firm
Prevailing wage for government projects, billable hour payroll allocation, PE license classification and field vs office payroll are all earnings for garnishment purposes when they are paid as compensation for personal services, so the order applies to the whole check, not the base rate. The Davis-Bacon Act applies to federal and District of Columbia contracts over $2,000 for construction, alteration or repair of public buildings or works, and Related Acts extend it to most federally assisted construction. The Service Contract Act covers federal service contracts over $2,500 and requires prevailing wage rates and fringe benefits for service employees; workers who meet the executive, administrative or professional exemption under 29 CFR part 541 are not service employees under the Act.
At the BLS May 2025 national median for civil engineers, $100,840 a year or $1,939 a week, a typical 25 percent cap on disposable earnings lands near $364 a week, and the exact figure depends on that employee's required deductions.
Processing rules that avoid employer liability
An employer that ignores an order can become liable for the amount it should have withheld. Orders are answered by their deadline, multiple orders are stacked in the priority the law sets (child support first), the employee is not disciplined for a single garnishment, and withheld amounts are remitted to the issuing agency on its schedule with the case number on every payment.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- The Davis-Bacon Act applies to federal and District of Columbia contracts over $2,000 for construction, alteration or repair of public buildings or works, and Related Acts extend it to most federally assisted construction. Contractors must pay laborers and mechanics the prevailing wage including fringe benefits, pay weekly, and submit weekly certified payroll records to the contracting agency. [DOL Fact Sheet #66]
- The Service Contract Act covers federal service contracts over $2,500 and requires prevailing wage rates and fringe benefits for service employees; workers who meet the executive, administrative or professional exemption under 29 CFR part 541 are not service employees under the Act. Contracts of $2,500 or less carry the $7.25 federal minimum wage. [DOL Fact Sheet #67]
Read the full guide to how to handle payroll garnishments, and the rest of the engineering firm payroll library.
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Frequently Asked Questions
How much of an engineering firm employee's pay can be garnished?
For ordinary debts, the lesser of 25 percent of disposable earnings or the amount over 30 times the federal minimum wage per week. Child support can take up to 50 to 65 percent depending on arrears and dependents.
Do prevailing wage for government projects count toward a garnishment?
Yes. Anything paid as compensation for personal services is earnings under the CCPA, so prevailing wage for government projects enter the disposable earnings calculation along with base pay.
Can an engineering firm fire an employee over a garnishment?
Not for a single debt. The CCPA prohibits discharge because earnings have been garnished for any one debt; state law often extends that protection further.
What does managed payroll cost for an engineering firm?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Prevailing wage for government projects, billable hour payroll allocation and PE license classification are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Engineering & Professional Services Firms. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage Garnishment
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