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.
Ohio Assignment of Wages Due or to Become Due can be described as a legal agreement between an employee (assignor) and a creditor (assignee), allowing the assignee to collect a portion of the employee's wages directly from their employer. This assignment is done with the purpose of repaying a debt owed by the assignor to the assignee. The Ohio Revised Code (Section 4113.15) governs the assignment of wages in Ohio, ensuring that certain rights and rules are followed to protect both parties involved. Here, "wages due or to become due" refers to the wages earned by the employee but not yet paid or received. This type of assignment allows the assignee to step into the shoes of the assignor and have a direct claim on the wages, ensuring timely repayment of the debt. There are a few different types of Ohio Assignment of Wages Due or to Become Due: 1. Voluntary Assignment: This type of assignment occurs when an employee willingly enters into an agreement with a creditor, allowing a specific amount or percentage of their wages to be assigned towards the debt repayment. The assignor and assignee mutually agree upon the terms and conditions of the assignment. 2. Court-Ordered Assignment: In certain cases, a court may order an assignment of wages for debt repayment. This occurs primarily when a creditor has taken legal action to collect a debt owed by the assignor, and the court deems an assignment of wages as an appropriate means of repayment. 3. Wage Garnishment: Wage garnishment involves the court issuing an order requiring an employer to withhold a part of an employee's wages and directly pay it to the assignee. This type of assignment usually happens when the assignor has failed to repay their debt despite other measures being taken. It is essential to note that Ohio law establishes limits on the amount that can be assigned from an employee's wages, ensuring that a certain portion is exempt for necessary living expenses. The assigned wages cannot exceed a specific percentage, allowing the employee to meet their basic needs while ensuring repayment of the assigned debt. In conclusion, Ohio Assignment of Wages Due or to Become Due is a legal mechanism that facilitates the repayment of a debt by allowing a creditor to collect a portion of an employee's wages directly from their employer. Whether voluntary, court-ordered, or through wage garnishment, this assignment aims to ensure timely debt repayment while providing certain protections to the assignor. Understanding the different types and regulations surrounding this assignment is crucial for both employees and creditors involved.
