California law limits the amount that a creditor can garnish (take) from your wages for repayment of debts.
A "wage garnishment," sometimes called a "wage attachment," is an order requiring your employer to withhold a certain amount of money from your pay and send it directly to one of your creditors. In most cases, a creditor can't garnish your wages without first getting a money judgment from a court.
For instance, if you're behind on credit card payments or owe a doctor's bill, those creditors can't garnish your wages unless they sue you and get a judgment. Some creditors, however, like those you owe taxes, federal student loans, child support, or alimony, don't have to file a suit to get a wage garnishment.
The creditor will continue to garnish your wages until the debt is paid off. But creditors can't seize all of the money in your paycheck. Different rules and legal limits determine how much of your pay can be garnished.
Also, you can take measures to stop a garnishment, such as claiming an exemption with the court. Your state's exemption laws determine the amount of income you'll be able to retain. Depending on your situation, you might be able to partially or fully keep your money. You can also potentially stop most garnishments by filing for bankruptcy.
What Are the Types of Wage Garnishments?
Generally, any of your creditors might be able to garnish your wages. Again, some creditors must first get a judgment and court order before garnishing wages. Other creditors don't need a court order.
The most common types of debt that may be garnished from your wages include:
- child support and alimony
- unpaid federal and state income taxes
- federal student loans, and
- court judgments against you for some other unpaid bill (like a credit card balance or personal loan).
What Is the Most Judgment Creditors Can Garnish From My Paycheck Under Federal Law?
Federal law places limits on how much judgment creditors can take. The garnishment amount is limited to 25% of your disposable earnings for that week (what's left after mandatory deductions) or the amount by which your disposable earnings for that week exceed 30 times the federal minimum hourly wage, whichever is less.
Some states set a lower percentage limit for how much of your wages are subject to garnishment. California law also takes into account the state minimum wage and a different multiplier, which can result in less money being garnished.
What Are the Limits on Wage Garnishment in California?
Under California law, as of September 1, 2023, the most that can be garnished from your wages is the lesser of:
- 20% of your disposable earnings for the workweek or
- 40% of the amount your weekly disposable earnings exceed 48 times the state hourly minimum wage. (If you work some place where the local minimum hourly wage is more than the state minimum hourly wage, use the local minimum hourly wage for the calculation. Also, the multiplier varies for pay periods other than weekly.) (Cal. Civ. Proc. Code § 706.050).
A bigger exemption is available if the debtor can show need. Under California law, "the portion of the judgment debtor's earnings which the judgment debtor proves is necessary for the support of the judgment debtor or the judgment debtor's family supported in whole or in part by the judgment debtor is exempt from levy under this chapter." (Cal. Civ. Proc. Code § 706.051).
"Disposable earnings" are the monies paid to the employee after the employer takes out the deductions required by law.
What Are Some Other Ways of Garnishing Money to Repay a Debt?
In addition to wage garnishment, another way to garnish money is by levying a bank account, subject to some exemptions. Certain money in your bank account is protected from this type of garnishment, for example, two months' worth of certain federal benefits, such as Social Security.
If your federal benefits are directly deposited to a bank account or loaded onto a prepaid card, these benefits are automatically protected from garnishment. But if you get your benefits by check and deposit them, the bank won't automatically protect this money. You'll have to go to court to prove the money comes from protected benefits.
So, credit card companies, medical services providers, and other commercial creditors generally can't garnish Social Security and other federal benefits. However, the federal government can garnish some kinds of federal benefits, like Social Security and Social Security Disability Insurance (SSDI), to recover some debts, such as back taxes or defaulted student loan payments.
Limits for Child Support, Student Loans, and Unpaid Taxes
If you owe child support, federal student loans, or taxes, the government or creditor can garnish your wages without getting a court judgment for that purpose. The amount that can be garnished is different than it is for judgment creditors, too.
Garnishment Limits for Unpaid Child Support
Since 1988, all court orders for child support include an automatic income withholding order. The other parent can also get a wage garnishment order from the court if you get behind in child support payments.
Federal law limits this type of wage garnishment. Up to 50% of your disposable earnings may be garnished to pay child support if you're currently supporting a spouse or a child who isn't the subject of the order. If you aren't supporting a spouse or child, up to 60% of your earnings may be taken. An additional 5% may be taken if you're more than 12 weeks in arrears. (15 U.S.C. § 1673).
Garnishment Limit for Federal Student Loans in Default
If you're in default on a federal student loan, the U.S. Department of Education or any entity collecting for this agency can garnish up to 15% of your pay. (20 U.S.C. § 1095a(a)(1)). This kind of garnishment is called an "administrative garnishment."
But you can keep an amount that's equivalent to 30 times the current federal minimum wage per week. (Federal law protects the level of income equal to 30 times the minimum wage per week from garnishment.) (15 U.S.C. § 1673).
Garnishment Limits for Unpaid Taxes
The federal government can garnish your wages (called a "levy") if you owe back taxes, even without a court judgment. The weekly exempt amount is based on the total of the taxpayer's standard deduction and the aggregate amount of the deductions for personal exemptions allowed the taxpayer in the taxable year in which such levy occurs. Then, this total is divided by 52. If you don't verify the standard deduction and how many dependents you would be entitled to claim on your tax return, the IRS bases the amount exempt from levy on the standard deduction for a married person filing separately, with only one personal exemption. (26 U.S.C. § 6334(d)).
States and local governments might also be able to garnish your wages to collect unpaid state and local taxes. If you owe California state taxes, up to 25% of your net wages may be garnished by the state to satisfy your tax obligations. Contact your state's labor department to find out more. You'll find a link to California's state labor department below.
How to Protect Yourself From Wage Garnishment
If you receive a notice of a wage garnishment order, you might be able to protect (exempt) some or all of your wages by filing an exemption claim with the court or raising an objection. The procedures you need to follow to object to a wage garnishment depend on the type of debt that the creditor is trying to collect, as well as the laws of your state. But usually, you must act quickly. File the required form as soon as possible. You might have to go to a hearing, but if you win, a judge might eliminate or reduce the garnishment.
You can often stop garnishments by filing for bankruptcy. Your state's exemption laws determine the amount of income you'll be able to keep.
Talk to a lawyer to learn more about how you can protect your wages.
Restrictions on Job Termination Due to Wage Garnishments
Complying with wage garnishment orders can be a hassle for your employer; some might prefer to terminate your employment rather than comply. State and federal law provide some protection for you in this situation.
According to federal law, your employer can't discharge you if you have one wage garnishment. (15 U.S.C. § 1674). But federal law won't protect you if you have more than one wage garnishment order. Some states offer more protection for debtors. Check with a local attorney to find out more about state protections.
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Getting More Information on California Wage Garnishment Laws
This article provides an overview of California's wage garnishment laws. You can find more information on garnishment in general at the U.S. Department of Labor website. To get more information about wage garnishments in California, check out the California Labor & Workforce Development Agency website and the State of California Department of Industrial Relations website.
For information specific to your situation, or to get help objecting to a garnishment, contact a local debt relief attorney.
