Start with disposable earnings
Title III of the Consumer Credit Protection Act (CCPA), enforced by the Department of Labor's Wage and Hour Division, limits garnishment as a share of disposable earnings, which the department defines as the amount of earnings left after legally required deductions are made. Earnings means compensation for personal services: wages, salaries, commissions, bonuses and pension or retirement payments, including lump sums such as severance paid for work performed. Tips count only to the extent they are cash wages paid by the employer or a tip credit the employer claims.
| Subtracted to reach disposable earnings | Not subtracted |
|---|---|
| Federal, state and local income tax withholding | Union dues |
| Employee share of Social Security and Medicare | Health and life insurance premiums |
| State unemployment insurance tax, where employees pay it | Charitable donations and savings bond purchases |
| Required contributions to a state employee retirement system | Voluntary retirement plan contributions |
Because the voluntary items are not subtracted, disposable earnings are usually higher than take-home pay. The paycheck calculator shows the required withholdings for a given gross pay, and the guide paycheck deductions explained sorts every line of a pay stub into the two columns.
The federal limit for ordinary debts
For garnishments other than support, bankruptcy orders and taxes, the weekly amount may not exceed the lesser of two figures:
The second test protects low earners completely: disposable earnings of $217.50 a week or less cannot be garnished, and just above that only the excess can be taken. The fact sheet notes that at $290 a week or more the 25 percent test takes over. The floor scales with the pay period:
| Pay period | No garnishment at or below | 25% test governs from |
|---|---|---|
| Weekly | $217.50 | $290.00 |
| Biweekly | $435.00 | $580.00 |
| Semimonthly | $471.25 | $628.33 |
| Monthly | $942.50 | $1,256.67 |
The department lists the first column as $217.50 weekly, $435 biweekly, $471.25 semimonthly and $942.50 monthly, which is what the table reproduces.
What the cap comes to
| Weekly disposable earnings | 25% test | Over $217.50 | Maximum garnishment | Left for you |
|---|---|---|---|---|
| $217.50 | $54.38 | $0.00 | $0.00 | $217.50 |
| $260.00 | $65.00 | $42.50 | $42.50 | $217.50 |
| $290.00 | $72.50 | $72.50 | $72.50 | $217.50 |
| $400.00 | $100.00 | $182.50 | $100.00 | $300.00 |
| $600.00 | $150.00 | $382.50 | $150.00 | $450.00 |
| $1,000.00 | $250.00 | $782.50 | $250.00 | $750.00 |
Between $217.50 and $290 the "over the floor" column is the smaller one and governs; from $290 upward the garnishment is a flat quarter of disposable earnings.
Debts with higher limits
| Type of debt | Federal limit on disposable earnings |
|---|---|
| Child support or alimony, worker supports another spouse or child | 50%, plus 5% if more than 12 weeks in arrears |
| Child support or alimony, worker supports no other spouse or child | 60%, plus 5% if more than 12 weeks in arrears |
| Defaulted federal non-tax debts collected by a federal agency | up to 15% (administrative wage garnishment) |
| Defaulted federal student loans collected by Education Department guaranty agencies | up to 15% |
| Federal or state taxes | Title III limits do not apply; the tax agency's own rules govern |
| Certain bankruptcy court orders | Title III limits do not apply |
The support percentages are federal ceilings; the court order sets the actual amount. The 15 percent garnishments for federal debts are subject to the CCPA but, the department notes, not to state garnishment laws.
Two other protections
- No firing for one garnishment. An employer may not discharge an employee because their earnings are garnished for any one debt, however many levies or proceedings are brought to collect it. A second, separate debt is not covered by this rule.
- The lower limit wins. Where a state law and the CCPA differ, the law that leaves the employee with more must be observed. State exemptions can be considerably more protective than the federal floor, so the state rule is the second thing to check.
This guide describes the federal limits as the Department of Labor publishes them. The garnishment order itself, the state's exemption statute and, for support, the court order determine the amount in a specific case; the percentage calculator covers the arithmetic once the right percentage is known.
Frequently asked questions
How much of my paycheck can be garnished?
For ordinary debts such as credit cards, medical bills or personal loans, Title III of the Consumer Credit Protection Act caps a garnishment at the lesser of 25 percent of your disposable earnings for the week or the amount by which those earnings exceed 30 times the federal minimum wage, $217.50 a week at $7.25. Disposable earnings of $217.50 or less cannot be garnished at all; from $290 a week up, the 25 percent test is the binding one. Child support, alimony, taxes and defaulted federal debts have their own higher limits.
What are disposable earnings?
The Department of Labor defines them as the amount of earnings left after legally required deductions are made: federal, state and local taxes, the employee's share of Social Security, Medicare and state unemployment insurance, and required contributions to a state employee retirement system. Voluntary deductions such as union dues, health and life insurance, charitable donations and voluntary retirement contributions do not reduce disposable earnings, so the garnishment is figured on a larger number than your take-home pay.
How much can be garnished for child support?
Up to 50 percent of disposable earnings if you are supporting another spouse or child, and up to 60 percent if you are not; an additional 5 percent may be taken for support payments more than 12 weeks in arrears, which gives the 55 and 65 percent figures. These are the federal ceilings; the court order sets the actual amount.
Can I be fired for a wage garnishment?
Not for one. The Department of Labor states that the CCPA prohibits an employer from firing an employee whose earnings are subject to garnishment for any one debt, regardless of the number of levies made or proceedings brought to collect it. The protection does not extend to a second, unrelated garnishment.
Do state limits or federal limits apply?
Whichever takes less. The fact sheet says that where a state garnishment law differs from the CCPA, the law resulting in the lower amount of earnings being garnished must be observed. Where a state protects more of a paycheck than the federal floor, the state rule is the one that applies.