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Training For Arizona Garnishment Law Requirements

What Is A Garnishment?

A wage garnishment is any legal or equitable procedure through which some portion of a person's earnings is required to be withheld by an employer for the payment of a debt. The six basic types of garnishments are child support, federal, state, or local levies, creditor garnishments, and student loans, with the largest amount of garnishments being for child support.

Employer Guidelines For Handling Garnishments

Employers generally have to notify the debtor in writing that a wage garnishment is about to start before making a garnishment and sending payments to the creditor. The wage garnishment then typically continues until the debts are paid off or otherwise resolved. Employers are required to provide employees with a copy of garnishment paperwork.

About Arizona Garnishments

Arizona garnishment laws govern when and how creditors can withhold wages or other assets to collect debts. Employers must comply with valid garnishment orders, applicable withholding limits, exemptions, response deadlines, and priority rules. Separate requirements may apply to child support, taxes, student loans, and other government obligations.

Compliance At A Glance

• Maximum percentage: 10% for most ordinary debt
• Threshold: Arizona statutory disposable-earnings exemption
Employer answer deadline: Generally 10 days
• Administrative fee: Yes, where authorized
• Employer cost recovery: Fee may be recoverable under applicable garnishment rules
• Priority rule: Child support and certain government claims have priority
• Form name: Application for Writ of Garnishment; Writ of Garnishment and Summons; Garnishee's Answer

Common Garnishment Errors In Arizona To Avoid

• Applying the federal percentage without checking Arizona's applicable exemption rules
• Failing to submit the required garnishee answer on time
• Ignoring priority rules when multiple withholding orders are in effect

Arizona Garnishment Law Requirements

Arizona employers that receive a wage garnishment must comply with Arizona garnishment laws as well as applicable federal requirements. Arizona distinguishes between garnishments involving earnings and those involving non-earnings, and different procedures and forms apply to each. Arizona's garnishment laws were significantly changed by Proposition 209, which took effect on December 5, 2022.

Arizona Wage Garnishment Overview

Under Arizona law, a garnishment of earnings generally occurs after a money judgment has been entered. "Earnings" include compensation payable for personal services, including wages, salaries, commissions, bonuses, and certain pension or retirement payments. "Disposable earnings" are generally the amount remaining from gross earnings after deductions required by state and federal law.

Arizona's current wage-garnishment limits were changed by Proposition 209. For most debts other than support obligations, the maximum portion of disposable earnings subject to garnishment is generally the lesser of 10% of disposable earnings for the applicable workweek or the amount by which disposable earnings exceed 60 times the highest applicable federal, state, or local minimum hourly wage.

These limits are established under Arizona Revised Statutes § 33-1131. Employers should use the applicable minimum wage in effect when the earnings are payable and consider any applicable local minimum wage when performing the calculation.

Proposition 209 and Arizona Garnishment Limits

Arizona Proposition 209, also known as the Arizona Protection from Predatory Debt Collection Act, became effective on December 5, 2022. The law reduced the portion of disposable earnings generally subject to debt-collection garnishment from the former 25% limit to 10% and increased the earnings threshold from 30 times the federal minimum wage to 60 times the highest applicable federal, state, or local minimum wage.

Arizona courts have confirmed that the amended garnishment provisions apply to garnishments governed by Proposition 209. The Arizona Judicial Branch has also updated its statewide garnishment forms to reflect the applicable percentage and calculation requirements.

Calculation of Disposable Earnings

Arizona defines disposable earnings as the portion of wages, salary, or compensation remaining after deductions required by law. The definition includes compensation such as bonuses and commissions and may include payments under pension, retirement, or deferred compensation plans.

For a typical non-support garnishment, payroll should calculate the employee's disposable earnings for the applicable workweek and then apply both parts of the Arizona limitation:

• 10% of the employee's disposable earnings; and
• The amount by which the employee's disposable earnings exceed 60 times the highest applicable minimum hourly wage.

The amount subject to garnishment is the lesser of those two calculations.

Extreme Economic Hardship

Arizona law provides an additional protection when a garnishment would cause extreme economic hardship to the judgment debtor or the debtor's family. If the applicable statutory requirements are satisfied and the court makes the required finding based on clear and convincing evidence, the court may reduce the amount withheld under a continuing lien from 10% to an amount not less than 5% of disposable earnings.

Employers should not independently determine whether an employee qualifies for a hardship reduction. Payroll should follow the percentage and instructions contained in the applicable court order.

Arizona Garnishment Process and Employer Response

Arizona garnishment procedures are governed by a series of statutes in A.R.S. §§ 12-1598 through 12-1598.17. The Arizona Judicial Branch describes garnishment procedures as complicated and advises parties to obtain legal advice when necessary.

When an employer receives a Writ of Garnishment and Summons for earnings, the employer becomes the garnishee and must comply with the instructions in the writ. If the employer employs the judgment debtor or expects to owe the debtor earnings within the applicable period, the employer generally must begin withholding nonexempt earnings.

The garnishee must complete and file the required Garnishee's Answer within the applicable deadline. Arizona's current garnishment instructions generally require the answer to be filed within 10 business days after receipt of the required garnishment paperwork when the garnishee owes or expects to owe earnings to the judgment debtor.

Employers should therefore:

• Review the Writ of Garnishment and accompanying documents immediately upon receipt.
• Verify whether the named judgment debtor is an employee or whether the employer otherwise owes the individual earnings.
• Determine the employee's disposable earnings for each applicable pay period.
• Calculate the nonexempt amount using the applicable Arizona garnishment limits.
• Begin withholding nonexempt earnings as required by the writ.
• Complete and file the Garnishee's Answer within the required deadline.
• Provide the required documents and notices to the judgment debtor and judgment creditor.
• Complete the required Non-Exempt Earnings Statement for each applicable pay period.
• Remit withheld earnings according to the applicable continuing-lien order and Arizona law.
• Maintain records of the garnishment, calculations, withholding, statements, and payments.

Initial Lien and Continuing Lien

Under A.R.S. § 12-1598.05, a writ of garnishment creates a lien on the judgment debtor's nonexempt earnings from the date the writ is served. The initial lien continues until an order of continuing lien is entered or another event specified by Arizona law causes the lien to terminate.

The garnishee generally must not remit withheld earnings to the judgment creditor until a court order is entered pursuant to the applicable continuing-lien procedure.

Arizona law also provides that if an order of continuing lien is not entered within 45 days after the garnishee files its answer, and no applicable objection has been filed, the withheld earnings may be released to the judgment debtor and the garnishee may be discharged from liability on the garnishment.

Non-Exempt Earnings Statements

Once an order of continuing lien is in effect, Arizona law requires the garnishee to continue withholding nonexempt earnings for as long as the lien remains in effect.

For each applicable pay period, the garnishee must complete a Non-Exempt Earnings Statement and provide it to the judgment debtor with the debtor's exempt earnings. A copy must also be provided to the judgment creditor or the creditor's attorney.

After an order of continuing lien has been entered, the garnishee generally delivers the nonexempt earnings to the judgment creditor or the creditor's attorney together with the required earnings statement.

Support and Child Support Garnishments

Arizona's standard 10% garnishment limitation does not apply to an order for the support of a person. Under A.R.S. § 33-1131, one-half of the debtor's disposable earnings for the applicable pay period is generally exempt from an order for support, meaning that up to 50% may be subject to the support order under the Arizona provision.

Child support and other support-withholding orders may also be subject to federal requirements, including the federal Consumer Credit Protection Act's special limits for support obligations. Employers should follow the specific support order and apply all applicable state and federal requirements.

Tax and Bankruptcy Garnishments

The exemptions in A.R.S. § 33-1131 do not apply to certain bankruptcy orders or debts due for state or federal taxes. Tax levies and bankruptcy-related withholding therefore require separate analysis and should not automatically be processed using the standard 10% Arizona consumer-debt garnishment calculation.

Employers should carefully review the issuing agency's or court's instructions for tax levies, bankruptcy orders, and other specialized withholding orders.

Employee Objections and Hearings

Arizona law provides procedures through which a judgment debtor may object to a garnishment and request a hearing. An employee may challenge issues such as the validity of the garnishment, the amount being withheld, or the application of an exemption.

Employers should not make independent legal determinations regarding an employee's objection or exemption claim. Payroll should continue following the garnishment order unless and until the court or issuing authority provides different instructions.

Arizona Garnishment Exemptions

Proposition 209 also increased several Arizona property exemptions that may protect assets from certain debt-collection proceedings. The Arizona Judicial Branch identifies increased exemptions for items including a homestead, household furnishings, motor vehicle equity, and funds held in a single financial account.

These property exemptions generally concern non-earnings garnishments and other collection procedures rather than the calculation of an employee's wage withholding. Employers processing wage garnishments should focus on the earnings exemptions and limits applicable to the particular order.

Federal Garnishment Limits Still Apply

Arizona employers must also comply with applicable federal garnishment requirements. Federal law establishes limits for ordinary consumer-debt garnishments and separate rules for child support, federal tax obligations, bankruptcy, and certain other debts.

Because Arizona's current law provides greater protection than the former federal-style 25% calculation for many ordinary debts, employers should determine which state and federal provisions apply to the particular garnishment and follow the controlling requirements.

Important Employer Compliance Point

An Arizona wage garnishment should not be treated as a simple instruction to withhold a fixed percentage of an employee's paycheck. Payroll must identify the type of garnishment, determine disposable earnings, apply the applicable Arizona and federal limitations, complete the required garnishment forms, provide required notices, and remit funds according to the court's instructions.

In particular, employers should not automatically use the former 25% federal-style calculation for an ordinary Arizona garnishment. Arizona's current statutory framework generally limits non-support debt garnishments to the lesser of 10% of disposable earnings or the amount exceeding 60 times the highest applicable minimum wage.

Recent Alabama Garnishment Court Cases

Radiance Capital Receivables Twelve, LLC v. Bondy’s Ford, Inc., 411 So. 3d 1210 (Ala. 2024). Employer argued that the employee had left and payments through another company were not garnishable; Supreme Court found factual issues concerning the continuing employment/payment relationship.

Moore v. Capesius, No. SC-2026-0037 (Ala. June 26, 2026). Employer sought release after the employee left; Court held the creditor was entitled to examine the employer concerning its amended garnishment answer.

Common Garnishment Errors In Arizona To Avoid

• Applying the federal percentage without checking Arizona's applicable exemption rules
• Failing to submit the required garnishee answer on time
• Ignoring priority rules when multiple withholding orders are in effect

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