Here’s a tip, as written up by the Chattanooga TFP: if you owe money in Tennessee, get a job waiting tables.
Workers worried about garnished wages because of an unpaid bill may have gained a unique escape clause, thanks to a Tennessee Appeals Court judgment against Erlanger Health System.
The ruling could allow a worker to virtually escape wage garnishment if the majority of his pay consists of tips, attorneys say. Ex-wives, hospitals and any other business that depends in part on wage garnishment to collect debts may have to re-think their strategy.
“Ultimately, the appeals court said if you are the employer, you do not count tip income for what is a garnishable wage,” said Chris Merkal, an attorney for Shoney’s. “This is new law.”
Erlanger wouldn’t comment on the case because of patient privacy laws, but spokeswoman Pat Charles said that in order for the hospital to serve as a safety net for the region, it must be able to collect unpaid bills.
“We discount fees based on income levels and work out payment plans with our patients on a regular basis,” Charles said. “When patients do not qualify for free care and do not make payments within a reasonable time, we refer accounts to reputable firms for collection.”