What is the federal wage garnishment limit?
The Consumer Credit Protection Act (CCPA) sets the federal maximum: the lesser of (1) 25% of disposable earnings per week, or (2) the amount by which weekly disposable earnings exceed 30 times the federal minimum wage ($7.25 × 30 = $217.50). Disposable earnings are what remains after legally required deductions (taxes, Social Security, Medicare) — not voluntary deductions like 401(k) contributions. These limits apply to consumer debt garnishments; child support and alimony allow up to 50–60%.
Which states prohibit wage garnishment for consumer debts?
Several states ban or severely restrict wage garnishment for regular consumer debts: Texas, Pennsylvania, North Carolina, and South Carolina generally exempt wages from consumer debt garnishment. Florida exempts the wages of 'heads of household' earning $750+ per week with a dependent family member. California provides more protection than federal law by using the higher state minimum wage. Even in protective states, child support, student loan, tax, and court-ordered restitution garnishments are still permitted.
Can my employer fire me because of a wage garnishment?
Federal law (CCPA Title III) prohibits firing an employee for a single wage garnishment. It does not protect against dismissal for two or more garnishments from separate creditors. Many states provide stronger protections, prohibiting termination for any number of garnishments. If you are fired because of a single garnishment, you can file a complaint with the U.S. Department of Labor's Wage and Hour Division.