State-by-State Wage Garnishment & Levy Laws | Employer Guide
State-By-State Guide To Garnishments And Levies
About Garnishments
What Is A Wage Garnishment?
A wage garnishment is a legal order requiring an employer to withhold a portion of an employee's earnings and remit those funds to a court, government agency, or creditor to satisfy a debt. A wage garnishment generally requires an employer to withhold a portion of an employee's earnings and send the withheld funds to a creditor, government agency, court, or other authorized recipient.
What Are Disposable Earnings?
Disposable earnings generally means the amount remaining from an employee's earnings after legally required deductions have been taken.
Required deductions can include applicable federal, state, and local taxes and required Social Security and Medicare contributions. Voluntary deductions generally are not subtracted when determining disposable earnings for purposes of the federal garnishment calculation.
The definition and calculation can vary depending on the type of garnishment and applicable state law. Payroll should use the calculation required for the specific order being processed.
Types of Wage Garnishments
A wage garnishment generally requires an employer to withhold a portion of an employee's earnings and send the withheld funds to a creditor, government agency, court, or other authorized recipient.
- Ordinary creditor garnishments
- Child support withholding
- Alimony or spousal support
- Federal tax levies
- State tax garnishments
- Federal student loan garnishments
- Bankruptcy orders
- Other government agency garnishments
Employers should note that not every garnishment follows the same rules. Payroll should identify the type of garnishment before calculating the withholding.
How Should an Employer Handle a Garnishment?
Employers should establish a consistent process for receiving, reviewing, calculating, processing, and monitoring garnishment orders.
- Verify the employee identified in the order
- Identify the type of garnishment
- Review the issuing court or government agency
- Confirm the effective date
- Review the withholding instructions
- Determine the applicable definition of earnings
- Calculate disposable earnings
- Apply applicable federal and state limits
- Set up the garnishment in the payroll system
- Begin withholding by the required deadline
- Remit withheld funds to the correct recipient
- Maintain records of withholding and remittance
- Monitor the order for changes or termination
The Various Wage Garnishment Laws
Wage garnishment rules can be complicated for employers because payroll may need to comply with federal law, state law, and the specific requirements of the garnishment order.
Specifically, federal law establishes limits on many ordinary wage garnishments, but states may provide greater protection to employees by imposing lower withholding limits or additional exemptions. Different rules can also apply to child support, alimony, federal student loans, bankruptcy, and federal or state tax debts.
Federal Wage Garnishment Rules
The federal Consumer Credit Protection Act generally limits ordinary creditor garnishments to the lesser of 25% of an employee's disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage/p>
For purposes of the federal calculation, disposable earnings generally means earnings remaining after legally required deductions have been taken from pay. Federal law also provides special rules for child support and alimony. Depending on the employee's circumstances, up to 50% or 60% of disposable earnings may generally be withheld, with an additional 5% potentially available when support payments are more than 12 weeks in arrears.
Please note that federal garnishment limits do not apply in the same way to certain bankruptcy orders and federal or state tax debts
State Wage Garnishment Rules
Employers should determine which state's garnishment law applies before calculating a withholding. State rules can change the maximum percentage, protected earnings amount, priority of competing garnishments, and procedures an employer must follow. Below is an overview of garnishments, followed by rules for each state.
Alabama
Alabama generally follows the federal framework for ordinary wage garnishments, subject to state exemptions and applicable statutory requirements. Employers should review the garnishment order and Alabama law before calculating the withholding. See Alabama rules
Alaska
Alaska provides statutory exemptions and limitations governing wage garnishments. Employers should review the applicable garnishment order and state exemption rules when determining the amount that can be withheld. See Alaska rules
Arizona
Arizona generally limits ordinary wage garnishments under state law and provides exemptions that can affect the amount available to creditors. Employers should calculate withholding using the applicable state and federal limitations. See Arizona rules
Arkansas
Arkansas generally permits wage garnishment for qualifying debts but provides state exemptions and limitations. Employers should review the specific writ and applicable state and federal limits before withholding wages. See Arkansas rules
California
California generally imposes a lower ordinary garnishment limit than the federal 25% maximum. California's calculation can also use a state minimum-wage-based earnings threshold, making the state calculation important for payroll. See California rules
Colorado
Colorado generally limits ordinary wage garnishments to a lower percentage than the federal maximum and applies a protected earnings threshold. Payroll should use the applicable Colorado calculation rather than automatically withholding 25%. See Colorado rules
Connecticut
Connecticut has specific statutory limitations and exemptions governing wage executions. Employers should follow the instructions in the wage execution and apply the applicable state withholding limits. See Connecticut rules
Delaware
Delaware permits wage garnishment in qualifying circumstances and establishes statutory procedures and exemptions. Employers should review the garnishment order and applicable state requirements before processing the withholding. See Delaware rules
District of Columbia
The District of Columbia permits wage garnishment subject to statutory exemptions and limitations. Employers should review the applicable order and determine the legally permitted withholding amount. See District of Columbia rules
Florida
Florida provides substantial wage protections for certain employees, including exemptions that may apply to heads of household. Employers should carefully review the garnishment order and applicable exemptions. See Florida rules
Georgia
Georgia generally limits ordinary creditor garnishments to the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed $217.50. Different rules may apply to private student loans, child support, taxes, and other specialized garnishments. See Georgia rules
Hawaii
Hawaii has specific wage garnishment procedures and statutory exemptions. Employers should follow the applicable order and determine the withholding under both state and federal requirements. See Hawaii rules
Idaho
Idaho permits wage garnishments subject to statutory limits and exemptions. Employers should review the writ and determine the amount that can legally be withheld from the employee's disposable earnings. See Idaho rules
Illinois
Illinois generally applies a lower garnishment limit than the federal 25% maximum for ordinary wage garnishments. Illinois also uses state-specific protected earnings rules that payroll should consider when calculating withholding. See Illinois rules
Indiana
Indiana permits wage garnishment for qualifying debts and provides statutory limitations and exemptions. Employers should follow the garnishment order and apply the lower applicable state or federal limit. See Indiana rules
Iowa
Iowa provides specific limits and exemptions for wage garnishments. Employers should review the applicable order and calculate withholding using the state requirements in addition to federal protections. See Iowa rules
Kansas
Kansas permits wage garnishment subject to state and federal limitations. Employers should review applicable exemptions, protected earnings amounts, and the instructions contained in the garnishment order. See Kansas rules
Kentucky
Kentucky generally limits ordinary wage garnishments and provides statutory exemptions. Payroll should determine the employee's disposable earnings and apply the legally permitted withholding amount. See Kentucky rules
Louisiana
Louisiana has specific garnishment procedures and exemptions. Employers receiving a garnishment should review the order carefully and comply with the applicable state withholding and remittance requirements. See Louisiana rules
Maine
Maine generally applies a garnishment limit of 25% of disposable earnings or the amount exceeding the applicable protected earnings threshold, subject to state and federal requirements. See Maine rules
Maryland
Maryland has specific wage garnishment protections and uses a state earnings exemption that can provide greater protection than the federal threshold. Employers should apply the Maryland calculation when it results in a lower withholding. See Maryland rules
Massachusetts
Massachusetts provides significant protections for wages subject to ordinary creditor garnishments. State law establishes a protected earnings amount that can be substantially higher than the federal threshold. See Massachusetts rules
Michigan
Michigan permits wage garnishment under specified circumstances and provides statutory limits and exemptions. Employers should follow the garnishment order and apply the applicable state and federal limitations. See Michigan rules
Minnesota
Minnesota provides wage garnishment protections that can be more restrictive than the federal standard. The state uses protected earnings thresholds and percentage limitations that payroll should consider when processing an ordinary garnishment. See Minnesota rules
Mississippi
Mississippi permits wage garnishment subject to state exemptions and federal limitations. Employers should review the specific writ and determine the legally permitted withholding before processing payroll. See Mississippi rules
Missouri
Missouri generally limits ordinary wage garnishments to a percentage of disposable earnings and provides additional protections for certain employees, including qualifying heads of household. See Missouri rules
Montana
Montana permits wage garnishment subject to state and federal restrictions and provides statutory exemptions. Employers should follow the garnishment order and calculate the lower applicable withholding amount. See Montana rules
Nebraska
Nebraska generally limits ordinary wage garnishments to a percentage of disposable earnings and provides additional protections for qualifying employees. Different rules can apply to child support, taxes, and other specialized debts. See Nebraska rules
Nevada
Nevada provides greater protection for certain lower-income employees and generally uses a tiered garnishment calculation. Payroll should apply Nevada's statutory formula rather than automatically using the federal 25% limit. See Nevada rules
New Hampshire
New Hampshire provides substantial protection against ordinary wage garnishment. Employers should carefully review the type of debt and applicable statutory exemptions before withholding employee wages. See New Hampshire rules
New Jersey
New Jersey permits wage garnishment subject to statutory limits and exemptions. Employers should follow the instructions in the order and apply the lower applicable state or federal withholding limit. See New Jersey rules
New Mexico
New Mexico generally limits ordinary wage garnishment to 25% of disposable earnings or the amount exceeding a protected earnings threshold. Payroll should apply the state calculation when it provides greater employee protection. See New Mexico rules
New York
New York has specific wage garnishment procedures and exemptions. Employers should review the income execution or income withholding order and calculate the amount that can legally be withheld. See New York rules
North Carolina
North Carolina generally prohibits ordinary creditors from garnishing wages in many circumstances. Exceptions apply for obligations such as child support, taxes, and certain other debts. See North Carolina rules
North Dakota
North Dakota permits wage garnishment subject to statutory exemptions and limitations. Employers should review the writ and applicable state and federal requirements before processing a withholding. See North Dakota rules
Ohio
Ohio permits wage garnishment subject to statutory limits and exemptions. Employers should calculate disposable earnings and follow the withholding instructions in the applicable order. See Ohio rules
Oklahoma
Oklahoma permits wage garnishment under specified circumstances and provides statutory exemptions and limitations. Employers should review the garnishment order before determining the amount to withhold. See Oklahoma rules
Oregon
Oregon provides specific wage garnishment protections and procedures. Employers should apply the applicable state withholding calculation and review exemptions before processing the garnishment. See Oregon rules
Pennsylvania
Pennsylvania generally protects wages from ordinary creditor garnishment, although important exceptions apply, including certain support obligations and other legally authorized debts. See Pennsylvania rules
Rhode Island
Rhode Island permits wage garnishment subject to state and federal limitations. Employers should review the applicable writ and calculate the withholding using the requirements that provide the greater protection to the employee. See Rhode Island rules
South Carolina
South Carolina generally protects wages from ordinary creditor garnishment. Exceptions can apply to obligations such as child support, taxes, and other legally authorized collections. See South Carolina rules
South Dakota
South Dakota permits wage garnishment subject to statutory exemptions and limitations. Employers should review the garnishment order and apply the applicable state and federal restrictions. See South Dakota rules
Tennessee
Tennessee permits wage garnishment for qualifying debts and establishes statutory limits and exemptions. Employers should follow the applicable order and calculate withholding under state and federal law. See Tennessee rules
Texas
Texas generally provides strong protection for current wages against ordinary creditor garnishments. Important exceptions apply, including child support, spousal maintenance, federal student loans, and certain tax obligations. See Texas rules
Utah
Utah permits wage garnishment subject to state and federal limits and exemptions. Employers should review the garnishment order and determine the legally permitted withholding amount. See Utah rules
Vermont
Vermont generally provides greater protection than federal law for certain consumer debts. State law can limit ordinary garnishment to a lower percentage of disposable earnings and establish protected earnings thresholds. See Vermont rules
Virginia
Virginia generally permits ordinary wage garnishment up to 25% of disposable earnings, subject to a protected earnings calculation based on applicable minimum-wage requirements. See Virginia rules
Washington
Washington generally provides greater protection than the federal 25% standard for certain consumer debts. State law can limit ordinary garnishments to 20% of disposable earnings and establish a higher protected earnings threshold. See Washington rules
West Virginia
West Virginia generally limits ordinary wage garnishment to 20% of disposable earnings and provides a protected earnings threshold that can be greater than the federal minimum. See West Virginia rules
Wisconsin
Wisconsin generally limits ordinary wage garnishment to 20% of disposable earnings and provides additional protections for qualifying lower-income households. See Wisconsin rules
Wyoming
Wyoming permits wage garnishment subject to statutory limits and exemptions. Employers should review the garnishment order and apply the applicable state and federal withholding requirements. See Wyoming rules
Garnishment Compliance Best Practices
- Centralize receipt and processing of garnishment orders
- Use standardized garnishment procedures
- Train payroll staff on applicable withholding requirements
- Verify each order before entering it into the payroll system
- Document withholding calculations
- Monitor payment and remittance deadlines
- Maintain records of all garnishment activity
- Review active orders regularly
- Monitor employees who transfer between states
- Review applicable state and local requirements periodically
- Audit garnishment calculations and remittances
- Escalate unusual or disputed orders for appropriate review
FAQs
What Should an Employer Do When It Receives a Garnishment?
Employers should establish a consistent process for handling garnishment orders.
- Verify the employee identified in the order
- Identify the type of garnishment
- Review the issuing court or government agency
- Confirm the effective date
- Review the amount claimed and withholding instructions
- Determine the applicable definition of earnings
- Calculate disposable earnings
- Apply the applicable federal and state limits
- Begin withholding according to the order
- Remit the withheld funds to the correct recipient
- Maintain records of withholding and remittance
- Continue withholding until the order is properly released or terminated
What Is Disposable Earnings for Garnishment Purposes?
For purposes of the federal Consumer Credit Protection Act, disposable earnings generally means the amount remaining after legally required deductions are taken from earnings.
Required deductions can include federal, state, and local taxes and the employee's required Social Security and Medicare contributions. Voluntary deductions generally are not subtracted when determining disposable earnings under the federal garnishment calculation.
Can an Employer Ignore a Wage Garnishment?
Generally, no. Once an employer receives a valid garnishment order or income withholding order, the employer generally must comply with the applicable withholding and remittance requirements.
Failure to properly process a garnishment can expose an employer to liability, penalties, or other consequences under applicable state or federal law.
Can an Employer Fire an Employee Because of a Wage Garnishment?
Federal law generally prohibits an employer from discharging an employee because the employee's earnings have been garnished for any one debt. Some states provide broader employment protections, including protection when multiple garnishments are involved.
What Happens When an Employee Leaves the Company?
Payroll should review every active garnishment when an employee resigns, is terminated, is laid off, or otherwise stops receiving wages.
Depending on the type of garnishment, the employer may have additional reporting or final-answer requirements. Child support withholding orders, in particular, can impose specific obligations when employment ends.
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