Once a creditor obtains a court judgment, they can garnish your wages without any further warning. An earnings withholding order served on your employer requires them to withhold up to 25% of your disposable earnings and send it directly to the creditor. Most people first learn about wage garnishment when their paycheck is short.
California Garnishment Limits
California limits wage garnishment to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 40 times the state minimum wage per week. At California’s current minimum wage, the 40x floor provides significant protection for lower-wage workers — if your weekly disposable earnings are close to the floor, garnishment may be zero or minimal.
Exempt Income
Social Security benefits, SSI, disability payments, and unemployment insurance are exempt from wage garnishment. Bank accounts containing exempt funds may also be protected — though levying a bank account is a separate process from wage garnishment with different rules.
Claiming a Hardship Exemption
File a claim of exemption with the levying officer (usually the sheriff) within 10 days of receiving the notice of levy. State that the garnishment would prevent you from providing for the necessities of life for yourself or your dependents. A hearing is scheduled. If granted, the garnishment is reduced or eliminated. Most creditors will negotiate a payment plan rather than face an exemption hearing.
Educational use only. Not legal advice. Justice Foundation.
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