Senate Bill 501 changes the amount of an employee’s weekly earnings that would be exempt from a wage garnishment order in California. Currently the amount subject to garnishment cannot exceed the lesser of 25% of the employee’s disposable earnings and the amount by which the individual’s disposable earnings for the week exceed 40 times the state minimum wage in effect at the time the earnings are payable. Beginning on July 1, 2016, the maximum amount subject to garnishment will change to the lesser of 25% of the employee’s disposable earnings for the week or 50% of the amount by which the employee’s disposable earnings for the week exceed 40 times the state minimum hourly wage in effect at the time the earnings are payable. If the employee works in a location where the local minimum wage exceeds the state minimum wage, the local minimum wage in effect at the time the earnings are payable will be used for this calculation.
