When wages are garnished, it means that a creditor has ordered your employer to divert some of your earnings to repay a debt. Federal laws limit the amount of money that can be garnished from an employee's earnings. Some states also have garnishment laws. When the state law conflicts with federal law, the law that results in the lower garnishment amount prevails. Some states do not allow garnishments to pay commercial debts. All states allow garnishments for child support and back taxes. These garnishments can exceed federal limits. Bankruptcy judges can also order garnishments above federal law.
No Garnishment
South Carolina, North Carolina, Texas and Pennsylvania do not allow commercial creditors to garnish wages. Florida allows garnishment in some cases, but does not allow garnishment of wages if a person is the head of household. In all of these states, wages may be garnished for child support and back taxes in these states.
Federal Law and Close to It
Several states look to federal law when determining wage garnishments. Under federal law, about 25 percent of an employee's disposable earnings "or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage." What this means is that for low wage workers and part-time workers, the portion of wages that cannot be garnished is equal to 30 times minimum wage. Arizona, California, Colorado, the District of Columbia, Georgia, Idaho, Iowa, Kansas, Michigan, Mississippi, Montana, Nevada, Ohio, Oklahoma, Rhode Island, Tennessee, Virginia and Wyoming follow federal law. In Connecticut and Maine, 25 percent of disposable wages is exempt from garnishment, but for low-wage workers, 40 times the minimum wage is exempt. Florida follows the same rules as Connecticut and Maine, unless the person is a head of household, in which case no wages can be garnished.
75 Percent Exempt
Some states exempt 75 percent of wages from garnishment orders. This amount would typically be lower than garnishments allowed under federal law. These states are Alaska, Alabama, Maryland, Louisiana, New Mexico, Oregon, North Dakota, Minnesota, and Washington. In Vermont, 75 percent of wages above federal minimum wage is exempt. Several of these states -- North Dakota, Oregon, Washington, and Minnesota -- exempt 40 times the federal minimum wage, an added protection for low-wage workers.
Cash Limits.
Some states do not base garnishments on a percentage of earnings. Rather, they allow garnishments for all amounts above a certain threshold. In Arkansas, $500 of a head of household's weekly wages are exempt from garnishment, and $200 for a single person. In Massachusetts, creditors can garnish everything above $125 per week. In Utah, $142 is exempt from garnishment
Others
The remaining states allow garnishments for various amounts. In Delaware, 85 percent of earnings are exempt. In Hawaii, 95 percent of the first $100 a person earns is exempt, 90 percent of the second $100 and 85 percent of the remainder is exempt from garnishment. In Illinois, 15 percent of gross income or 45 times the minimum wage -- whichever is greater -- is exempt from garnishments. In Missouri, 90 percent of a head of household's wages are exempt, 75 percent if the worker is single. Nebraska exempts 75 percent of a single person's wages from garnishment, but 85 percent of a head of household's. In New Hampshire, the amount that is exempt is 50 times the minimum wage. In New Jersey and North Dakota, creditors can take up to 10 percent of a person's gross wages. In South Dakota and West Virginia, 20 percent of a person's wages are exempt. In Wisconsin, 80 percent of earnings are exempt.
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