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12-809.Offsetting claims.

Article XII. Judgments - Enforcement · Part 8. Wage Deductions · Not amended since adoption on record · Last verified July 20, 2026

In one sentenceLets an employer offset its own claims against the judgment creditor or debtor from what it owes on wages -- except unliquidated tort claims -- and holds the employer liable only for the balance left after that offset.

Full Text of 735 ILCS 5/12-809

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The employer is entitled to assert against indebtedness due to the judgment debtor offsetting claims against either or both the judgment creditor and the judgment debtor, whether (1) due at the time of service of the summons or thereafter to become due and (2) liquidated or unliquidated, except demands for unliquidated claims for actions sounding in tort. The employer is liable for the balance of indebtedness due the judgment debtor after the offsetting claims are adjusted. The verdict or finding and judgment shall show the amount of offsetting claims or deductions allowed against each party.

Plain-English Summary

Section 12-809 recognizes that the employer often has its own financial dealings with the parties, separate from the wages a deduction order targets. The employer may assert offsetting claims against the judgment creditor, the judgment debtor, or both, whether those claims were already due when the summons was served or become due afterward, and whether they are liquidated or unliquidated. The one exception: demands for unliquidated claims sounding in tort cannot be used as an offset. That line keeps disputed, unquantified tort claims from being used to swallow up wages otherwise headed to the debtor or creditor.

Once the offsetting claims are adjusted, the employer is liable only for whatever balance of indebtedness remains due the judgment debtor. The verdict or finding, and the resulting judgment, must show the amount of offsetting claims or deductions allowed against each party, so the record reflects exactly how the final number was reached rather than leaving it to be reconstructed later.

Frequently Asked Questions

Can an employer offset money the judgment debtor owes it against wages otherwise headed for a deduction order?

Yes. Section 12-809 lets the employer assert offsetting claims against the judgment creditor, the judgment debtor, or both, whether liquidated or unliquidated.

Are all types of claims an employer might have eligible to be used as an offset?

No. The statute excludes demands for unliquidated claims for actions sounding in tort -- those cannot be used to offset the indebtedness.

Must the employer's offsetting claim already be due when the summons is served?

No. It can be a claim already due at the time of service, or one that becomes due afterward.

What is the employer liable for once offsets are applied?

Only the balance of indebtedness remaining due the judgment debtor after the offsetting claims have been adjusted.

Does the judgment show how the offset amounts were calculated?

Yes. The verdict or finding and the judgment must show the amount of offsetting claims or deductions allowed against each party.

Amendment History

(Source: P.A. 82-280.)

Source & verification. Section text and amendment history are reproduced verbatim from the Illinois Compiled Statutes, published by the Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026. · Official source
Also known as: employer offset wage garnishment illinoiscan employer deduct debt owed by employee illinoistort claim offset garnishment illinoisemployer counterclaim wage deduction illinois