California Governor Signs Law on Garnishment for Judgment Debtors

California Gov. Gavin Newsom (D) announced Sept. 29 the signing of S.B. 1477, which reduces the maximum amount of wages subject to garnishment for employees against whom a judgment levy has been issued.

The act sets the maximum rates of weekly garnishment to be the lesser of two amounts, 20% of the individual’s disposable earnings for a week or 40% of the amount by which the individual’s disposable earnings exceed 48 times the state minimum hourly wage.

Existing law sets a higher rate at the lesser of 25% of disposable earnings or 50% of the amount by which disposable earnings ...