Federal Wage Garnishment Law vs. CA Wage Garnishment Law

California wage law differs from federal wage law in many ways. For example, California has a higher minimum wage, requires employers to pay overtime when eligible employees work more than eight hours in a day (as opposed to forty hours in a week under federal law), and requires employers to provide meal and rest breaks during the work day, something not mandatory under federal law.  

However, California and federal law are nearly identical when it comes to wage garnishments. This article explains the basic rules.

What Is a Wage Garnishment?

A wage garnishment is a court order requiring your employer to withhold a portion of your wages and send it directly to the person named in the order. Wage garnishments can come about in several ways. If you owe child support, the court will issue an order requiring your employer to take that money out of your paycheck and send it to the custodial parent. If you owe back taxes, the IRS can garnish your wages. And, if you default on your student loan, the Department of Education may garnish your wages.

If you owe money to another type of creditor (such as a credit card company, doctor's office, or department store), that creditor can't simply garnish your wages. It must first file a lawsuit against you for the money you owe, win the lawsuit, and get a court order for a wage garnishment.

How Much Can Creditors Take?

The rules for how much of your paycheck can be taken in a wage garnishment depend on the type of debt:

• Judgment creditors (those who have sued you and won): up to 25% of your net earnings
• Student loans: up to 15% of your net earnings
• Child support: up to 50% of your disposable earnings if you are currently supporting a spouse or child who isn't a subject of the order; up to 60% if you are not.
• Back taxes: the maximum depends on your standard deduction and how many dependents you have. In California, the Franchise Tax Board (the state's tax agency) can't take more than 25% of your net pay if you owe state taxes.

Job Protections

Your employer may not fire you because your wages are garnished to satisfy a single debt, under federal and California law. In addition, California law protects you from being fired because someone threatens to garnish your wages. However, if you face more than one garnishment for different debts, you are no longer protected.