Wage Garnishment in California: How to Claim Your Exemptions and Reduce What They Take

California Debt Settlement System | Justice Foundation

California wage garnishment is limited to 25% of disposable earnings or the amount by which weekly disposable earnings exceed 40 times the state minimum wage — whichever is less. At California’s minimum wage, this means many lower-income workers have little or nothing garnishable. But even for workers with significant garnishable income, California’s exemption process can reduce or eliminate withholding in hardship situations.

The Garnishment Calculation

Your “disposable earnings” for garnishment purposes are gross wages minus mandatory deductions: federal and state taxes withheld, Social Security and Medicare taxes, state disability insurance, and mandatory retirement contributions. Voluntary deductions (health insurance, 401k contributions, union dues) are not subtracted before the garnishment calculation. On $800 per week in disposable earnings with California’s $16 minimum wage, the garnishment cap is the lesser of 25% ($200) or the amount above $640 (40 × $16). The result in this example is $160 per week.

The Financial Hardship Exemption

California Code of Civil Procedure Section 706.051 allows a court to reduce or eliminate wage garnishment if it would result in financial hardship preventing you from providing for yourself and your dependents with the necessities of life. To claim this exemption, file a Claim of Exemption (form WG-006) with the levying officer within 15 days of receiving the earnings withholding order. Include an Income and Expense Declaration (FL-150 or a similar financial disclosure) showing your income and essential monthly expenses. If your expenses legitimately consume most of your income, courts often reduce garnishment to a level that still allows basic needs to be met.

What Happens After You File

The creditor can oppose your exemption claim. If they do, the court holds a hearing and decides based on the financial evidence you present. A well-documented hardship claim supported by a complete expense declaration almost always produces a meaningful reduction even if the exemption isn’t granted entirely. The Justice Foundation kit includes Claim of Exemption forms, Income and Expense Declaration instructions, and a hearing preparation guide for California garnishment exemption proceedings.