29 C.F.R. § 1650.113 Liquidation of final check.
Title 29 - Labor
When the employee retires or resigns or if his or her employment or period of active duty ends before the debt is collected in full, the employee's debt will be automatically deducted from the final payments (e.g., final salary payment, lump-sum leave, etc.) due the employee to the extent necessary to liquidate the debt. If the employee's final pay is not sufficient to permit all deductions to be made, the order of precedence for the deductions will be: retirement and FICA; Medicare; Federal income taxes; health benefits; group life insurance; indebtedness due to the United States; State income taxes; and voluntary deductions and allotments.
Title 29: Labor
PART 1650—DEBT COLLECTION
Subpart A—Procedures for the Collection of Debts by Salary Offset
§ 1650.113 Liquidation of final check.
