Employers who are served with wage garnishments on behalf of their employees must adjust the amounts withheld. Beginning July 1, 2016, a withholding order cannot exceed the lesser of:
- 25 percent of an individual’s weekly disposable earnings; or
- 50 percent of the amount by which the disposable earnings for the week exceed 40 times the state minimum hourly wage in effect.
If the debtor works in a location where the local minimum hourly wage is greater than the state minimum hourly wage, the local minimum hourly wage in effect at the time the earnings are payable must be used for the calculation.
This information is intended to provide guidance in the area of employment law and is provided as a service of the Firm. While every effort has been made to ensure the accuracy of the information contained in this bulletin, it is not intended to serve as “legal advice”. If additional information or assistance is needed on any of the topics contained in this informational package or any other matter, please feel free to contact Cynthia Elkins for further information. All rights reserved. © 2016