California Wage Garnishment Exemption

 

Wages are protected by federal non bankruptcy law, and by state wage garnishment laws, which are generally more generous than the Federal wage garnishment protection. There are typically exceptions to this exemption for things like child support, and other priority debts.

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Wage Exemptions -- State System

California Law Wage Garnishment Limits

In California, your wages are protected to 75% of wages or 40 times state minimum wage ($12/hour for large employers, otherwise $11) or local minimum wage; more if debtor proves that higher amount is needed. Garnishment is limited to 50% of amount in excess of 40 times state or local minimum wage.

California earned a "C" from NCLC because its garnishment law protect at least $350 per week.

California Exemption System 1

California Exemption System 2

Federal Non-Bankruptcy Law
(available only if using State System)

Federal "non-bankruptcy" law also offers exemption protection for wages.

Wage Garnishment — Federal System § 522 (no exemption)

Can California debtors use the Federal Bankruptcy exemptions instead of California exemptions?

No. Federal exemptions not available. Instead, California has two systems of exemptions, one of which ("C2") closely mirrors the federal scheme. Cal. Civ. Proc. Code § 703.130 

The Federal Bankruptcy Exemptions under 11 U.S.C. § 522(d) are available to you if

  • you haven't lived in any state longer than 180 days for a while,
  • or
  • if your state allows the Federal exemptions as a choice.
 California collections law and federal labor law (a federal non-bankruptcy exemption) set limits on what wages can be garnished.
 
The Wage Garnishment exemption in bankruptcy is for "earned by unpaid wages"... that is wages you'd earned as of the date you filed, but hadn't been paid for yet.
In a few states, the exemption protects earlier wages deposited in a bank account.
 
As the NCLC pointed out in a 2019 survey of state wage garnishment laws, some states fail to guarantee that a debtor can earn a poverty wage free of garnishment.

See also on LegalConsumer.com

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Jurisdictional relevance: ST

There are versions of this article for each State.