California State Statutes for Wage Garnishments
Wage garnishments in California are in accordance with federal law, as well as state-specific laws relating to dependent support. The debtor must receive a regular wage, not through self-employment, and his pay must be above the poverty line in order to have wages garnished. The California Wage Garnishment Act obligates all private and public employers to honor wage-garnishment orders.
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Civil Money Judgments
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California’s Code of Civil Procedure gives creditors with civil judgments the right to wage garnishment as a means to collect the judgment debt. Judgments in California earn an annual interest rate of 10 percent on the unpaid liability. Wage garnishment may start at any time after the creditor is awarded a civil money judgment. California civil money judgments are valid for 10 years with an option to renew for an additional five years. Wage garnishment to satisfy a civil judgment takes a backseat to wage garnishment for child-support payments and alimony.
Child Support
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Title III of the Consumer Credit Protection Act limits the amount of money that a creditor may garnish from an employee’s pay per pay period. California follows federal guidelines, but includes an added stipulation for debtors responsible for dependent support. Federal statutes limit the garnishment to no more than 25 percent of the disposable income unless the employee owes money for past-due child support. By federal law, court orders for delinquent support can garnish up to 50 percent of weekly wages. In California, debtors have the option of proving to the court that they require more than 75 percent of their disposable income to support themselves and any dependents. Based on the validity of the debtor’s argument, the court may allow a reduction in wage garnishment.
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Delinquent Taxes
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The Internal Revenue Service and California can garnish wages for past-due tax debt. Federal and state rules apply regarding the amount of wages that may be deducted to pay off the tax liability. Taxpayers can have the wage deduction order lifted by paying off the amount of the delinquent tax debt.
Bank Account
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Another way in which creditors can seize wages in California is to garnish a debtor’s bank account. If the funds within the account are from wages, the same guidelines as those imposed on wage garnishment apply. Debtors can appeal a bank account garnishment order on the basis that the funds within the account are derived from wages. For example, if a creditor wins a civil suit and receives a garnishment order for a bank account seizure, the funds in the account are typically frozen up to the amount of the judgment debt. If the funds are from wages, the amount taken may be no more than 25 percent, or less in the case of dependent support.
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