Under current law, the amount of an individual's disposable earnings subject to garnishment is either 25% of the individual's disposable earnings for a week or the amount an individual's disposable earnings for a week exceed 30 times the state or federal minimum wage, whichever is less. The bill changes the amount subject to garnishment from 25% to 20% of the individual's disposable weekly earnings and from 30 times to 40 times the amount an individual's disposable earnings for a week exceed the state or federal minimum wage. Currently, the cost of court-ordered health insurance for a child provided by an individual is deducted from the individual's disposable earnings subject to garnishment. The bill also deducts from an individual's disposable earnings subject to garnishment the cost of any health insurance that is provided by the individual's employer and voluntarily withheld from the individual's earnings.
The bill creates an exemption that would permit individuals to prove that the amount of their pay subject to garnishment should be further reduced or eliminated altogether if the individual can establish that such reductions are necessary to support the individual or the individual's family. The bill also requires clearer and more timely notice to an individual whose wages are being garnished and gives the individual more time after receiving the notice before garnishment starts.
The bill applies to all writs of garnishment issues on or after January 1, 2020, regardless of the date of the judgment that is basis of the writ of garnishment.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)