What it is:
A wage assignment refers to a forced payment of a financial obligation via automatic withholding from an employee's pay.
How it works (Example):
Courts can subject individuals who become delinquent in their obligations to wage assignments. In most cases, wage assignments are ordered when a person is delinquent on child support, spousal support, taxes or loans. If the obligor shows a history of nonpayment, a wage assignment can be used to automatically subtract money owed from his or her payroll without his or her consent. For example, if an individual becomes delinquent on $100 monthly loan payments, a wage assignment automatically deducts the $100 from the person's weekly or monthly paycheck and sends it to the lender.