Employment Law Questions? Ask an Employment Lawyer.
What is the garnishment for (creditor, child support, etc.)?
For child support the state of CO, as stated here (see answer to question 6), permits a processing fee of up to $5 per month.
As for other garnishments, I could not find clear information other than this document from ADP (a national payroll processing company) which indicates that CO law does not have a clear direction on whether employers can charge any fees to process garnishments other than child support. Normally, when there is no direct legal provision or okay for an employer to do something or to not be able to do something, then while it means that there are no laws against it, there are also no laws that allow it, which means there may be no clear answer for an employer unless he or she specifically hires an attorney in their state to review the state court's view on the subject through cases and other materials, helps determine the likelihood that such action may lead to legal problems, determines if there is any amount that would be "safe" to charge, and then gives them a recommendation of whether or not they are able to charge a fee for garnishments (other than child support) at all.