Change to California Wage Garnishment Limits

On July 1, 2013 the California wage garnishment law changed.

On July 1, 2013 the California wage garnishment law changed. Previously, judgment creditors in California could garnish the lessor of:

  • 25% of a debtor’s disposable income, or
  • the amount that the debtor’s disposable income exceeded 30 times the federal minimum wage (which currently is $7.25 per hour).

Disposable incomes is that income left over after the employer makes required deductions, such as for taxes or social security.

As of July 1, 2013 the California wage garnishment changed so that a judgment creditor can garnish the lessor of:

  • 25% of a debtor’s disposable income, or
  • the amount that the debtor’s disposable income exceeds 40 times the state minimum wage. The minimum wage in California is currently $8.00 per hour, but that may increase in 2014.

This means that if you make the minimum wage or close to the minimum wage, you will be able to keep more of your wages from garnishment. To learn more about the California wage garnishment limits, see California Wage Garnishment Law.