Wage garnishment is a legal process in which a court orders an employer to withhold a certain amount of an employee’s earnings and send it directly to a creditor to satisfy a debt. The amount that can be garnished varies by state and type of debt. In this post, we will provide an overview of wage garnishment laws by state in 2023.
Overview of Wage Garnishment
Wage garnishment is a legal process in which a court orders an employer to withhold a certain amount of an employee’s earnings and send it directly to a creditor to satisfy a debt. The amount that can be garnished varies by state and type of debt.
Types of Debts that Can Be Garnished
The most common types of debts that can be garnished include unpaid:
- Taxes
- Child support
- Student loans
- Court-ordered fines and fees
- Medical bills
- Credit card debt
Exemptions from Wage Garnishment
Certain types of income are exempt from wage garnishment, including:
- Social Security
- Veterans’ benefits
- Workers’ compensation
- Disability benefits
- Retirement benefits
- Public assistance benefits
State-Specific Wage Garnishment Laws
Each state has its own wage garnishment laws. Here is an overview of wage garnishment laws by some states in 2023:
Alabama
In Alabama, wage garnishment is limited to 25% of an individual’s disposable income or the amount by which their income goes beyond thirty times the federal minimum wage, whichever is less. Additionally, garnishment is not allowed for certain types of debts, including medical bills and credit card debts.
Alaska
Wage garnishment is only permitted in Alaska to the extent that it does not exceed 25% of the individual’s disposable income or the amount by which their income goes beyond thirty times the federal minimum wage, whichever is less. For those who make less than 50 times the federal minimum wage, there are a few exceptions.
Arizona
In Arizona, wage garnishment is only allowed to be applied to 25% of one’s disposable income or, if less, the amount by which their income goes beyond thirty times the federal minimum wage. For those who make less than 150% of the federal poverty level, there are exemptions, though.
Arkansas
The garnishment of wages in Arkansas is limited to 25% of one’s disposable income or the amount by which their income exceeds 40 times the federal minimum wage, whichever is less. Furthermore, garnishment is not permitted for certain types of debts, such as medical bills and credit card debts.
California
Like In Arkansas, wage garnishment in California is limited to 25% of an individual’s disposable income or the amount by which their income exceeds 40 times the state minimum wage, whichever is less. However, there are exemptions for individuals who earn less than 40 times the state minimum wage.
Colorado
Wage garnishment is prohibited in Colorado and is confined to 25% of an individual’s disposable income or the amount by which their income goes beyond thirty times the federal minimum wage, whichever is less. Furthermore, garnishment is not permitted for certain types of debts, such as medical bills and student loans.
Connecticut
Wage garnishment in Connecticut is set at 25% of a person’s disposable income or the amount by which their income exceeds 40 times the federal minimum wage, whichever is less. Furthermore, garnishment is not permitted for certain types of debts, such as medical bills and credit card debts.
Florida
In Florida, wage garnishment is limited to 25% of an individual’s disposable income or the amount by which their income goes beyond thirty times the federal minimum wage, whichever is less. However, garnishment is not allowed for certain types of debts, including medical bills and student loans.
Wage garnishment laws by state play an important role in protecting employees’ rights and ensuring that their wages are not unfairly garnished by creditors or debt collectors. While the specifics of these laws can vary from state to state, the majority of states follow a similar framework that limits the percentage of an employee’s disposable income that can be garnished, as well as the types of debts that can be subject to wage garnishment.
Understanding these laws is crucial for employees who may find themselves in a situation where their wages are being garnished, as well as for employers who are responsible for withholding and remitting these garnished wages. It’s important to keep in mind that while wage garnishment can be a difficult and stressful situation, there are tax resolution/consultation services available to help individuals navigate the process and protect their rights.