(1) If the garnishee fails to pay over funds to which the creditor is entitled under this subchapter within the time required under s. 812.39, the creditor may, upon notice to all of the parties, move the court for judgment against the garnishee in the amount of the unsatisfied judgment plus interest and costs. The garnishee may assert the affirmative defense that the amount of the debtor’s nonexempt disposable earnings that the creditor should have been paid is less than the amount of the unsatisfied judgment balance. If the garnishee proves that defense, the garnishee’s liability is limited to the amount the creditor should have been paid or $100, whichever is greater.
812.41.Garnishee liability.
Ch. 812: Garnishment · Last amended 1993 · Last verified July 15, 2026
In one sentenceSection 812.41 lets a creditor sue a garnishee who fails to pay over earnings on time and lets a debtor sue a garnishee who withholds too much, while giving each garnishee a limited defense that can cap what it owes.
Full Text of Section 812.41
(2) The debtor may move the court for judgment against the garnishee for the debtor’s actual damages if the garnishee deducts more from the debtor’s earnings than is authorized by this subchapter.
(3) In any proceeding under sub. (2), the garnishee may assert the affirmative defense that the wrongful conduct of the garnishee was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid that error. If the garnishee proves that defense, liability of the garnishee is limited to the return to the debtor of any exempt disposable earnings paid to the creditor.
Official Notes
NOTE: 1993 Wis. Act 80 contains Judicial Council notes. When a garnishee/employer failed to withhold any wages in an earnings garnishment, the plaintiff’s action against the employer for its failure to respond to the garnishment complaint was an action against the employer only. Consequently, the bankruptcy law automatic stay provisions did not apply. Kenosha Hospital & Medical Center v. Garcia, 2004 WI 105, 274 Wis. 2d 338, 683 N.W.2d 425, 02-1727. The notice of motion for judgment against the garnishee in an earnings garnishment procedure should be served like a summons in the present case rather than as a paper in a pending action. Kenosha Hospital & Medical Center v. Garcia, 2004 WI 105, 274 Wis. 2d 338, 683 N.W.2d 425, 02-1727. This section does not state that a creditor may not accept garnishment payments that the garnishee wrongfully withheld from the debtor’s earnings. Rather, the garnishee is liable to the debtor for actual damages if it “deducts more from the debtor’s earnings than is authorized by this subchapter.” No provision grants the debtor a claim against the creditor for accepting earnings that the garnishee wrongfully deducted, nor does the statute instruct the creditor to return wrongfully deducted earnings to the garnishee or to forward them to the debtor. If the garnishee wrongfully withholds the debtor’s earnings and sends them to the creditor, the creditor may accept the payments, and the debtor’s remedy for having earnings wrongfully garnished lies against the garnishee. Whitehead v. Discover Bank, 221 F. Supp. 3d 1055 (2016).
Plain-English Summary
Section 812.41 gives both the creditor and the debtor a remedy against a garnishee who mishandles an earnings garnishment. If the garnishee fails to pay over funds the creditor is entitled to within the time section 812.39 requires, the creditor can, after giving notice to all parties, move the court for judgment against the garnishee for the amount of the unsatisfied judgment plus interest and costs. The garnishee is not without a defense, though: if it can show the debtor’s nonexempt disposable earnings owed to the creditor were less than the unsatisfied judgment balance, its liability is limited to whichever is greater — the amount that should have been paid, or $100.
The debtor’s side of the remedy works differently. If the garnishee deducts more from the debtor’s earnings than the subchapter authorizes, the debtor can move the court for judgment against the garnishee for the debtor’s actual damages. Here too the garnishee has a narrow way to limit its exposure: if it proves the wrongful conduct was unintentional, resulted from a bona fide error, and happened despite procedures reasonably designed to prevent that kind of mistake, its liability is capped at returning to the debtor whatever exempt earnings were wrongly paid to the creditor.
Frequently Asked Questions
What can a creditor do if the garnishee never pays over the earnings it owes?
After notice to all the parties, the creditor can move the court for judgment against the garnishee for the amount of the unsatisfied judgment plus interest and costs.
Can a garnishee limit how much it owes the creditor for a late or missed payment?
Yes. If the garnishee proves the debtor’s nonexempt disposable earnings owed were less than the unsatisfied judgment balance, its liability is limited to the greater of that amount or $100.
What can I do if the garnishee took more out of my paycheck than it was allowed to?
You can move the court for judgment against the garnishee for your actual damages.
Can a garnishee avoid liability for over-withholding by claiming it was a mistake?
Only in a limited way. If it proves the conduct was unintentional, a bona fide error, and happened despite reasonably adapted procedures, its liability is limited to returning the exempt earnings it wrongly paid to the creditor.
Does the creditor have to notify anyone before moving for judgment against the garnishee?
Yes. Section 812.41 requires notice to all of the parties before that motion is made.
Amendment History
History: 1993 a. 80.
Source & verification. Section text and official notes are
reproduced verbatim from the Wisconsin Statutes, published by the
Wisconsin Legislature (Legislative Reference Bureau). Last verified July 15, 2026.
· Official source
Also known as: wisconsin garnishee liabilitygarnishee failed to pay creditor wisconsingarnishee over withheld wages wisconsinwisconsin garnishment bona fide error defense