An assignment of wages is the transfer of the right to collect wages from the wage earner to a creditor. The assignment of wages is usually effectuated by deducting from an employee's earnings the amount necessary to pay off a debt.
An assignment of wages should be contained in a separate written instrument, signed by the person who has earned or will earn the wages or salary. The assignment should include statements identifying the transaction to which the assignment relates, the personal status of the assignor, and a recital, where appropriate, that no other assignment or order exists in connection with the same transaction.
Many jurisdictions have enacted statutory provisions concerning wage assignments that prescribe various requisites of or conditions to the validity of assignments of wages. Compliance with these statutes is essential to make such assignments effective.
Hawaii Assignment of Wages Due or to Become Due is a legal document that allows an individual or entity (assignor) to assign their future wages to another person or entity (assignee). This assignment is typically used as collateral for a loan or to settle a debt. In Hawaii, there are primarily two types of Assignment of Wages Due or to Become Due: 1. Voluntary Assignment of Wages: This type of assignment occurs when an employee voluntarily assigns a portion of their future wages to a creditor or an assignee. This assignment is often done to repay a debt or to fulfill a loan agreement. The assignee becomes the beneficiary of the assigned wages and has the right to receive the assigned percentage of the employee's wages until the debt is paid off. 2. Wage Assignment for Child Support: When it comes to child support, Hawaii allows for wage assignments to ensure consistent and timely payment. In such cases, the court may order the assignment of wages due or to become due from the noncustodial parent's paycheck to be directly sent to the custodial parent or the agency responsible for distributing child support. The Hawaii Assignment of Wages Due or to Become Due document should consist of various crucial elements to be considered legally valid. These may include: 1. Names and contact information: The document should clearly state the names, addresses, and contact information of both the assignor (employee) and the assignee (creditor or beneficiary). 2. Assignor's employment details: The assignment should specify the name and address of the employer, the assignor's position/title, and any relevant employment information that may be necessary for wage garnishment. 3. Assigned wage percentage: The document should state the percentage of the assignor's wages to be assigned to the assignee or creditor. This defines the percentage of future earnings that will be redirected to the assignee until the debt is repaid. 4. Repayment terms: It is essential to include the repayment terms, such as the duration of the assignment, payment frequency, and the total amount owed. This clarifies the expected timeline for debt repayment. 5. Revocation clause: The assignment may include a revocation clause, which allows the assignor to terminate the wage assignment under specific circumstances, such as the debt being fully repaid. 6. Statement of acknowledgment: Both the assignor and the assignee should sign and date the document, acknowledging their understanding and agreement to the terms and conditions of the assignment. It is important to consult with a legal professional to ensure compliance with the specific regulations and requirements established by the state of Hawaii when preparing and executing an Assignment of Wages Due or to Become Due.
