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HB19-1189

Wage Garnishment Reform

Concerning wage garnishment reform, and, in connection therewith, reducing disposable earnings by health insurance premiums, reducing the amount that is subject to garnishment, and providing more detailed information to the judgment debtor regarding garnishment.
Session:
2019 Regular Session
Subject:
Courts & Judicial
Bill Summary

Wage garnishment - disposable earnings - hardship exemption - notice - applicability. Under current law, the amount of an individual's disposable earnings subject to garnishment is either 25% of the individual's disposable weekly earnings or the amount by which an individual's disposable earnings for a week exceed 30 times the state or federal minimum wage, whichever is less. The act changes the amount subject to garnishment to 20% of the individual's disposable weekly earnings 40 times the amount by which 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 act 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 act 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 act 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 act applies to all writs of garnishment issued on or after October 1, 2020, regardless of the date of the judgment that is basis of the writ of garnishment.


(Note: This summary applies to this bill as enacted.)

Status

Introduced
Passed
Became Law

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Bill Text

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