Does wage garnishment occur in California? The answer is yes, and it refers to when your employer receives an order to withhold a certain amount of money from your paycheck and send it directly to one of your creditors.
But, how does it work, and how much can creditors take from your paycheck? Let’s find out, and don’t forget that, in case your wages are being garnished, a wage garnishment lawyer will be able to help you fight back.
Key Takeaways
- Most creditors must sue you and get a court judgment before they can garnish your wages, but certain debts—like taxes, child support, alimony, and federal student loans—can be garnished without a lawsuit.
- California’s wage garnishment limits are stricter than the federal rules. Since September 1, 2023, creditors can take only the lesser of 20% of weekly disposable earnings or 40% of what exceeds 48 times the applicable minimum wage.
- You can challenge a wage garnishment by filing an exemption claim, especially if you can show financial hardship, and an attorney can help you reduce or stop the garnishment.
Some Creditors Need to Sue You First
In most cases, a creditor can’t garnish your wages without having to sue you first and get a judgement that orders the garnish. However, in case of federal student loans, taxes owed, child support, or alimony, these creditors don’t have to file a suit to get a wage garnishment in California.
As we just explained, not all debt may be garnished from your wages. The most common types are:
- Unpaid federal and state income taxes
- Child support
- Alimony
- Federal student loans
- Court judgments for unpaid bills
How much can be garnished from your paycheck?
Federal law has limits on how much judgment creditors can take from your wages, which is 25% of your weekly disposable earnings. This refers to what remains after mandatory deductions. Creditors may also take the amount by which your disposable earnings for a week exceed 30 times the federal minimum hourly wage.
The amount differs from state to state, and in California, usually the state’s minimum wage is taken into consideration, resulting in less money being garnished.
Creditors will only stop when all of the debt is paid off, but they can never seize all of the money in your paycheck. However, all hope is not lost, since you can take measures to stop a garnishment by claiming an exemption in court, with the help of a lawyer, expert in wage garnishments or filing for bankruptcy.
Under California law (effective September 1, 2023), the maximum amount that can be taken from your wages is the lower of the following:
- 20% of your disposable earnings for that workweek, or
- 40% of the amount by which your weekly disposable earnings exceed 48 times the applicable hourly minimum wage. (If your city’s minimum wage is higher than the state minimum wage, you must use the local rate. The multiplier also changes if you’re paid on a schedule other than weekly.)
A larger exemption may apply if you can show financial need. California law protects any portion of your earnings that you can prove is necessary to support yourself or your family. (Cal. Civ. Proc. Code § 706.051 (2024).)
But, can they garnish your wages for medical bills? Yes, your wages can be garnished for unpaid medical bills after a creditor obtains a court order. But remember, you can stop this with the help of a bankruptcy lawyer by your side.
More California Garnishment Laws To Repay a Debt
Besides wage garnishment, creditors may garnish money by levying a bank account. However, some money is protected, such as Social Security, and federal benefits (except when it’s for back taxes or defaulted student loan payments).
How to Protect Yourself From Wage Garnishment
If wage garnishment is happening to you, don’t panic, there are actions you can take, starting today. Remember, you might be able to protect some or even all of your wages by filing an exemption claim in court. If you are unsure how to proceed, contact one of our lawyers at SB Legal.
If you win the case in court, the judge may eliminate or reduce the garnishment. Contact SB Legal today for a free consultation.
Summary
Wage garnishment in California is a legal process that allows certain creditors to take a portion of your paycheck, but state law places strict limits on how much they can withhold. While some debts like taxes, child support, and federal student loans can be collected without a lawsuit, most creditors must first obtain a court judgment.
California offers stronger protections than federal law, capping garnishment at the lesser of 20 percent of your disposable income or 40 percent of the amount that exceeds 48 times the applicable minimum wage. You may also be able to reduce or eliminate a garnishment by proving financial hardship and filing an exemption claim.
Understanding these rules—and getting guidance from a lawyer when needed—can make a significant difference in protecting your income.
Frequently Asked Questions
Can a creditor garnish future earnings I haven’t earned yet?
No. Garnishment applies only to wages as they are paid. Creditors cannot claim income you have not yet earned, and any new garnishment order would require separate legal action.
Does filing an exemption stop the garnishment automatically?
Not automatically. Filing the exemption pauses the process until the court reviews your claim. The garnishment continues unless the judge rules in your favor, so acting quickly is important.
How long does a wage garnishment stay in effect in California?
A garnishment continues until the debt, interest, and allowable fees are fully paid, or until a court orders it reduced or removed. If your financial situation changes, you can request a modification at any time.