Involuntary and Voluntary Pay Deductions: Oklahoma

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Alan L. Rupe and Aaron Sauerwein, Kutak Rock LLP

Summary

• An employer that receives an income withholding order (IWO) for child support must begin withholding no later than on the first payday that occurs after the employer receives the IWO. The employer must remit the withheld amounts within seven days after payday. If an employee is terminated from employment, the employer must send a termination notice within 10 days. See Child Support Withholding.
• The amount of disposable income that is subject to creditor garnishment in Oklahoma is based on the federal garnishment limits. The Oklahoma Tax Commission may garnish an employee's accrued earnings to satisfy a tax debt by serving an administrative wage garnishment notice on their employer along with a copy of the notice to the indebted employee.See Creditor Garnishment Withholding.
• If an employee with unpaid state taxes becomes subject to a tax levy, the employer must comply with the levy by withholding required amounts from the employee's wages. An employer may be served with a levy notice by the Oklahoma Employment Security Commission against an employee to recover the overpayment of unemployment benefits. See Tax and Other Levies.
• Oklahoma allows employees to voluntary assign their wages to another, provided the assignments are revocable. See Voluntary Wage Assignments.