Wage garnishment restrictions: exempt earnings: student loans.

The Wage Garnishment Law prescribes the procedure for withholding an employee's earnings for purposes of paying a debt. The law requires that a levy of execution upon the earnings of an employee be made by service of an earnings withholding order upon the employer. An earnings withholding order is issued by a levying officer upon receiving an application submitted by a judgment creditor. An employer is required, except as specified, to withhold the amounts required by an earnings withholding order from all earnings of the employee payable for any pay period of the employee which ends during the withholding period. The law prohibits the amount of an individual judgment debtor's weekly disposable earnings subject to levy under an earnings withholding order from exceeding the lesser of 25% of the individual's weekly disposable earnings or 50% of the amount by which the individual's disposable earnings for the week exceed 40 times the state minimum hourly wage, or applicable local minimum hourly wage, if higher, in effect at the time the earnings are payable. This bill would establish a reduced maximum amount of disposable earnings of an individual judgment debtor subject to levy under an earnings withholding order for a judgment based in whole or in part on a claim for debt on a student loan that is not made, insured, or guaranteed by the United States Government pursuant to the Federal Family Education Loan Program or the William D. Ford Federal Direct Loan Program. The bill would prohibit the amount of disposable earnings subject to levy from exceeding the lesser of 15% of the individual's disposable earnings for that week or 50% of the amount by which the individual's disposable earnings for the week exceed 40 times the state minimum hourly wage, or applicable local minimum hourly wage, if higher, in effect at the time the earnings are payable.