Raymond J. Donovan, Secretary of Labor, United States Department of Labor v. Southern California Gas Company
Opinion
Opinion
The Secretary of Labor brought this action charging the Southern California Gas Company with a violation of the Consumer Credit Protection Act. 15 U.S.C. §§ 1601-1693 . The Secretary alleges that in discharging Dianne Allen because her wages had been garnished, the company violated section 304(a) of the Act. 15 U.S.C. § 1674 (a). That section prohibits an employer from discharging an employee whose earnings “have been subjected to garnishment” on account of only one indebtedness. The Secretary contends that garnishment has not occurred until such time as earnings have actually been withheld, while the company contends that garnishment has occurred at the time the employer first receives a legally binding garnishment notice.
The parties stipulated to facts showing that while the company had received two garnishment notices from different creditors in connection with Ms. Allen’s earnings, Ms. Allen had promptly secured a release from the second creditor, and therefore no wages had been withheld pursuant to the second order. On cross-motions for summary judgment on this issue of statutory construction, the district court ruled for the defendant. We reverse.