Stormont-Vail Healthcare, Inc. v. Sievers
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The Supreme Court reversed the holdings of the lower courts in this case, holding that wages can be "earnings" under Kan. Stat. Ann. 60-2310(a)(1) even after they are paid if the employee can specifically and directly identify the funds as wages.
Plaintiff sued Defendant for $3,008, and Defendant consented to the judgment. At issue was a garnishment order issued under Kan. Stat. Ann. 61-3505(b)(1). Defendant objected to the garnishment, arguing that the funds in his bank account were "earnings" and could only be garnished under Kan. Stat. Ann. 61-3507. The district court and court of appeals ordered the bank to pay the withheld funds, concluding that Defendant's wages lost their status as "earnings" and could be garnished under section 61-3505 once his paycheck was deposited in his bank account. The Supreme Court reversed, holding (1) "paid" wages may in certain circumstances be deemed earnings for purposes of garnishment; and (2) this case must be remanded for further factual findings.
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