What does a employer/garneshee mean by exercising their right to recoupment?

[BoymomX2]

Jurisdiction

Missouri

A company I earn commission from that considers me an Independent Contractor received a wage garnishment order for me. I didn't think as an IC that they could garnish my "wages" being that I don't earn wages. However, any comission that I've earned is now being put toward a "debit balance" that's nearly twice the amount of the garnishment amount and then once that has been cleared they will adhear to the garnishment order. The only explaination I've been given is that they are exercising their right to recoupment. I have no idea what that means. Please help. I don't know if this matters at all but the branch I work out of is located in Rhode Island, but I reside in Missouri. The company is an international company.

 

[adjusterjack]

The only explaination I've been given is that they are exercising their right to recoupment. I have no idea what that means.

"Recoupment allows one party (Party A) to a contract to keep payments that are due to the other party (Party B) when Party B owes money to Party A at the same time."

https://www.dlgfirm.com/blog/2018/01/recoupment-defined/

What is it that you owe the company that's being taken out of your commissions?

I didn't think as an IC that they could garnish my "wages" being that I don't earn wages.

You're right. It's not wage garnishment because you don't earn wages.

It's a levy of your receivables or revenue and, like a bank account levy, there is no limit to how much the creditor can take until the debt is paid.

 

[welkin]

A company I earn commission from that considers me an Independent Contractor received a wage garnishment order for me. I didn't think as an IC that they could garnish my "wages" being that I don't earn wages. However, any comission that I've earned is now being put toward a "debit balance" that's nearly twice the amount of the garnishment amount and then once that has been cleared they will adhear to the garnishment order. The only explaination I've been given is that they are exercising their right to recoupment. I have no idea what that means. Please help. I don't know if this matters at all but the branch I work out of is located in Rhode Island, but I reside in Missouri. The company is an international company.

You should speak to an attorney to see if the order is on the up and up and where the judgement came from.

 

[zddoodah]

A company I earn commission from that considers me an Independent Contractor received a wage garnishment order for me. I didn't think as an IC that they could garnish my "wages" being that I don't earn wages.

Your "wages" aren't being garnished. What's being garnished is your receivable from the employer to you, as the IC.

Before I try to address the rest of your post, please explain why the garnishment exists. Is it because you got sued and have a judgment against you? Is it in connection with an alimony/child support obligation? Something else? Also, you used the word "they" three times in your post without being clear who "they" are. Please clarify.