California modifies garnishment maximum withholding amount

California has enacted Senate Bill 1477 which modifies the maximum amount of an individual’s disposable earnings subject to levy when required to enforce a money judgment.

The Details:

Effective September 1, 2023,  the maximum amount of disposable earnings of a judgment debtor for any workweek that is subject to levy must not exceed the lesser of 20% of the individual’s disposable earnings for that week or 40% of the amount by which the individual’s disposable earnings for that week exceed 48 times the state minimum hourly wage. 

Current law provides that the maximum amount of a judgment debtor’s disposable earnings for any workweek that is subject to levy shall not exceed 50% of the amount by which the disposable earnings for the week exceed 40 times the state minimum hourly wage. 

Next Steps:

As of September 1, 2023, California employers when required to enforce a money judgment on an employee must not withhold in excess of the lesser of 20% of the individual’s disposable earnings for that week or 40% of the amount by which the individual’s disposable earnings for that week exceed 48 times the state minimum hourly wage. 

Have Questions?

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