The California Garnishment Laws for Withholding Limits

A creditor has a right to obtain a judgment against a debtor when his collection efforts fail. To collect an outstanding debt, he can file a writ of garnishment to withhold a debtor's wages. California has a set of laws that protects an employee's wages from excessive withholding, allowing him to claim an exemption in certain situations.

General Provisions

California Civil Code Procedures 706-020 through 706-034 describe the requirements an employer must meet to withhold wages. The law gives an employer a 10-day grace period to start garnishing an employee's paycheck. Wage garnishment for support payments has priority over nonsupport payments, such as creditor debt. An employer must stop a nonsupport garnishment withholding and notify a creditor that a support judgment exists. As a community property state, California permits garnishing a non-debtor spouse's paycheck and requires a separate court order to do so.

Employer Obligations

California garnishment law requires an employer to perform several tasks when he receives a garnishment order. First, it must notify an employee and provide him with a copy of a withholding order. He must complete a form and mail it to a levying officer within 180 days. An employer must withhold the garnishment amount from an employee's earnings during a withholding period and mail the funds withheld during a prior month by the 15th of the following month.

Garnishment Amount Restrictions

California garnishment law does not deviate from the federal law that allows a creditor to take as much as 25 percent of a debtor's disposable income. However, an amount after garnishment must be at least 30 times the federal minimum hourly wage, which is $7.25 as of July 2009. Only half of an employee's earnings is exempt from garnishment for support.

Withholding Exemption

California Code of Civil Procedure section 706-105 allows a debtor to claim an exemption on additional earnings if the garnished amount creates a financial hardship for a debtor and does not allow him to meet his daily needs. An exemption applies only to non-support garnishment. When a debtor files an exemption, the levying officer must notify the judgment creditor about an exemption. A creditor has 10 days to file a notice of opposition. If a creditor does not oppose the exemption, the court automatically grants the exemption and releases the earnings.