Wage Garnishment by State

The conditions for wage garnishment are outlined by federal law. One of these conditions pertains to the maximum allowable amount that can be garnished from a person’s paycheck. According to the Consumer Credit Protection Act, any court-ordered wage garnishment can only deduct whichever is lower between these two computations:

·         25 percent of your disposable income or take-home pay

·         Your disposable income minus 30 times the federal hourly minimum wage

States have also come forward with their own computations based on their respective economic status. After all, not every state shares the same minimum wages and enforces the same economic policies. Take a look at how states with wage garnishment laws stand in relation to established federal guidelines.

Colorado

Colorado bases wage garnishment calculations on the first pay period less deductions. The amount is either 75 percent of disposable income or fixed amounts depending on the pay schedule, whichever is lower. For weekly pay, the garnishment is $154.50; for bi-weekly, $309.00; for semi-monthly, $334.75; and for monthly, $669.50.

Texas

Texas follows the federal wage garnishment guidelines but distinguishes between the types of income that can be garnished. Aside from federal benefits such as Social Security, wages cannot be garnished.

Minnesota

Minnesota slightly differs with regard to federal wage garnishment guidelines. In particular, the state calculates 40 times the federal hourly minimum wage instead of 30 (the 25-percent rule, however, still exists).