News
Exemptions to California Wage Garnishment Laws

Exemptions to California Wage Garnishment Laws

By Her Lawyer on March 5th, 2022

Wage garnishment can be a difficult concept to understand. Here’s what to know about exemptions to wage garnishment laws in California.

Filing an exemption claim against wage garnishment is a form of protection against the debtor’s income. Exemption claims ensure the debtor may still pay off any necessary living expenses.

What is a wage garnishment law?

Wage garnishment, also known as wage assignment, earnings assignment, or earnings withholding, occurs when a person loses a civil case and owes money. The winning side is called the creditor, and the losing side is known as the debtor. The court does not collect money from the creditor. Instead, the debtor is paid any wages they do not pay to the creditor, who may file to have the debtor’s wages withheld to pay the owed money.

Wage garnishment laws may apply to civil court, tax liability, and child, spousal, and partner support.

To apply for child, spousal, or partner support, use the following forms:

  • Earnings Withholding Order for Support (Form WG-004)
  • Earnings Assignment Order for Spousal or Partner Support (Form FL-435)

To apply for tax liability, individuals should fill out the Earnings Withholding Order for Taxes (Form WG-022).

Related: California Wage Garnishment Laws

Information Included in Wage Garnishment Orders

Employers who receive the following forms must withhold part of the debtor’s earnings:

  • Earnings Withholding Order (Form WG-002)
  • Earnings Withholding Order for Elder or Dependent Adult Financial Abuse (Form WG-030)

Each wage garnishment order may include the following information:

  • The debtor and the creditor
  • The levying officer responsible for collecting money
  • Amount of money owed

The levying officer will provide the employer with the following documents:

After an employer receives the order, the employer must relay information to the employee and withhold money from the debtor.

Related: Wage Discrimination Laws in California

Employer Steps after Receiving an Earnings Withholding Order

  1. Remember the date of the received order
  2. Complete and return all the forms the levying officer gave to the employer to the employee within ten days since the order was received
  3. Mail the Employer’s Return form back to the levying officer within 15 days of receiving the order

Wage Garnishment Limits in California

Creditors cannot withhold a debtor’s wages without getting a money judgment. A money judgment is a court order awarding the creditor a sum of money. After obtaining the judgment, the information is sent through the local sheriff to the debtor’s employer.

Creditors are limited to the amount of money taken out of a debtor’s paycheck. Under California law (Civil Code Section 706.050), the most a debtor’s wage may be withheld are:

  • 25% of disposable earnings for one week OR
  • 50% of the amount of weekly disposable earnings exceed 40 times the state hourly minimum wage

Under federal law, individuals may only use up to 50% of disposable earnings to pay for child support. However, if the debtor is not supporting a spouse or child, up to 60% of earnings may be taken. If a debtor owes arrears for more than 12 weeks, the debtor may pay an additional 5%.

Exemptions to Wage Garnishment Laws in California

Wage garnishment exemptions are wage protectors to prevent the creditor from taking more of the debtor’s wages to ensure the debtor may pay living expenses. Depending on state law and circumstance, debtors may partially or fully protect income. Creditors may not garnish income from:

  • Social Security
  • Disability
  • Retirement
  • Child support
  • Alimony

All wages are subject to an exemption. However, low-income debtors may be more likely to keep their wages. A debtor may also claim an exemption under California Civil Procedures Code Section 706.051 if no prior hearing for an earnings withholding order existed or a major change affects the debtor’s ability to pay.

How to File a Claim of Exemption in California

California wage garnishment orders can be found online here, in addition to any claims of exemptions a debtor may make.

An exemption claim should include:

  • The debtor and creditor’s name and information
  • The case number
  • A description of the exemption allowing the debtor to keep
  • the largest amount of wages
  • Proof of dependents (if applicable)

Exemption claims may be made by filing the debtor’s claim of exemption and the debtor’s financial statement with the levying officer or in-person and by mail. An exemption claim must be made within 15 days in person or within 20 days by mail.

1. File and complete paperwork

Under California law (Civil Procedures Code 706.123), the claim of exemption is executed under oath and includes:

  • The amount a judgment debtor believes should be withheld from debtor earnings
  • Mailing address and name of the claimant
  • Grounds for exemption objection
  • Financial statement
  • Citation of the law based on the claim

Fill out these forms:

Form WG-006, California’s Claim of Exemption (return to the levying officer, not the court)

The debtor may offer the creditor a specified amount to be withheld

Form WG-007 (California Financial Statement)

2. Mail or deliver the forms to the levying officer

The original and a copy of the Claim of Exemption and Financial Statement should be delivered, but the debtor should keep another copy. If the creditor does not oppose the claim of exemption, the levying officer will ask the employer to stop withholding wages after ten days.

3. Opposition of Claim of Exemption

If a creditor disagrees with the claim of exemption, the debtor will receive forms for:

  • Notice of Opposition to Claim of Exemption (Form WG-009)
  • Notice of Hearing on Claim of Exemption (Form WG-010)

The later form sets a court date for the judge, allowing the debtor to know whether or not the creditor will go to court. However, attending court is unnecessary if the debtor is willing to have the court decide whether or not the debtor receives an exemption. Read the Employee Instructions (Form WG-003) for information about the hearing.

4. Attend a hearing

After filing the appropriate court forms, a garnishment hearing may be set by the court. The time is given to the debtor later or automatically with the initial garnishment notice. The hearing centers on the debtor’s claim to exemption.

To the hearing, debtors are recommended to bring recent pay stubs, canceled checks, or any information which may support the debtor’s reasoning. Under California Civil Procedures Code (Section 703.050), less than ten days before the hearing, the creditor serves notice of the hearing and opposition to the claim of exemption on the debtor in person or by mail.

If the judge agrees, the employer will stop withholding earnings.

Exemptions in Special Wage Garnishment Cases

For federal loans and taxes, creditors may legally garnish wages before receiving a judgment from the court. However, a debtor may still submit an objection and forms of exemptions. Under California state law (Section 706.075), the state must grant a taxpayer a hearing within 15 days after the request was submitted.

If the IRS wants to garnish wages, a written notice will be provided. Within ten days, the employer must deliver the debtor a copy of the order and notice. Exemptions may be claimed depending on household size and income.

For student loans, debtors receive at least 30 days’ notice to file a claim for exemption, request a hearing, or request hardship assistance.

Exceptions to Filing an Exemption

If a debtor’s wages are being withheld, their best interest may be to talk to a lawyer or a small claims advisor. However, a claim of exemption may not be granted if:

  • Earnings are used for unnecessary luxuries
  • The debtor owes money to a lawyer for a family law case
  • The debtor owes a debt for child, spousal, or partner support
  • The debtor owes a debt to a former employee

FAQs About Wage Garnishment Exemptions in California

Related: A Guide to Equal Pay Laws in California

Can an employer fire a debtor over wage garnishment?

Employers may terminate a debtor’s employment rather than comply with wage garnishment orders. Under federal law (15 USC Section 1674), employers may not fire a debtor with one wage garnishment. However, federal law does not protect the debtor from more than one order.

Are there other options to stopping wage garnishment in California?

Debtors may try many different options such as calling the creditor, filing an exemption, filing for bankruptcy, or fighting the judgment.

What are other forms of wage garnishment?

Wage garnishments may be levied on non-wages such as taxes, federal loans, or property. The process to claim exemption on non-wage garnishments is no different from wage garnishment, with the exception of the different forms, which may include the following:

Contact Us

If you or a loved one would like to know more about wage garnishment laws in California, get your free consultation with one of our employment attorneys today!