Bill Text: CA AB1775 | 2011-2012 | Regular Session | Chaptered
Bill Title: Wage garnishment: exempt earnings.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-23 - Chaptered by Secretary of State - Chapter 474, Statutes of 2012. [AB1775 Detail]
Download: California-2011-AB1775-Chaptered.html
BILL NUMBER: AB 1775 CHAPTERED
BILL TEXT
CHAPTER 474
FILED WITH SECRETARY OF STATE SEPTEMBER 23, 2012
APPROVED BY GOVERNOR SEPTEMBER 23, 2012
PASSED THE SENATE AUGUST 20, 2012
PASSED THE ASSEMBLY AUGUST 22, 2012
AMENDED IN SENATE JUNE 21, 2012
AMENDED IN ASSEMBLY APRIL 17, 2012
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 17, 2012
An act to amend Sections 706.011 and 706.050 of the Code of Civil
Procedure, relating to wage garnishment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1775, Wieckowski. Wage garnishment: exempt earnings.
The Wage Garnishment Law governs earnings withholding orders and
provides definitions of certain terms. Existing law requires a levy
of execution upon the earnings of a judgment debtor to be made by
service of an earnings withholding order upon the debtor's employer.
Existing law limits the amount of earnings of a judgment debtor that
may be subject to an earnings withholding order to the amount
specified by federal law, unless an exception applies. Federal law
prohibits the amount of earnings that may be subject to garnishment
from exceeding 25% of an individual's weekly disposable earnings or
the amount by which the individual's disposable earnings for the week
exceed 30 times the federal minimum hourly wage in effect at the
time the earnings are payable.
This bill would define "disposable earnings" as the portion of an
individual's earnings that remains after deducting all amounts
required to be withheld by law. The bill would also prohibit 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
the amount by which the individual's disposable earnings for the week
exceed 40 times the state minimum hourly wage in effect at the time
the earnings are payable, unless an exception applies. For any pay
period other than weekly, the bill would also require the use of
certain multipliers to determine a maximum amount subject to levy
under an earnings withholding order that is proportional in effect to
a calculation based on the amount by which the individual's earnings
for a workweek exceed 40 times the state minimum wage, except as
specified.
This bill would become operative on July 1, 2013. In order to
implement these provisions, the bill would also require the Judicial
Council to, on or before July 1, 2013, revise the instructions
contained in certain documents provided to employers in order to
specify the method of computation described above.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 706.011 of the Code of Civil Procedure is
amended to read:
706.011. As used in this chapter:
(a) "Disposable earnings" means the portion of an individual's
earnings that remains after deducting all amounts required to be
withheld by law.
(b) "Earnings" means compensation payable by an employer to an
employee for personal services performed by such employee, whether
denominated as wages, salary, commission, bonus, or otherwise.
(c) "Earnings withholding order for elder or dependent adult
financial abuse" means an earnings withholding order, made pursuant
to Article 5 (commencing with Section 706.100) and based on a money
judgment in an action for elder or adult dependent financial abuse
under Section 15657.5 of the Welfare and Institutions Code.
(d) "Earnings assignment order for support" means an order, made
pursuant to Chapter 8 (commencing with Section 5200) of Part 5 of
Division 9 of the Family Code or Section 3088 of the Probate Code,
which requires an employer to withhold earnings for support.
(e) "Employee" means a public officer and any individual who
performs services subject to the right of the employer to control
both what shall be done and how it shall be done.
(f) "Employer" means a person for whom an individual performs
services as an employee.
(g) "Judgment creditor," as applied to the state, means the
specific state agency seeking to collect a judgment or tax liability.
(h) "Judgment debtor" includes a person from whom the state is
seeking to collect a tax liability under Article 4 (commencing with
Section 706.070), whether or not a judgment has been obtained on such
tax liability.
(i) "Person" includes an individual, a corporation, a partnership
or other unincorporated association, a limited liability company, and
a public entity.
SEC. 2. Section 706.050 of the Code of Civil Procedure is amended
to read:
706.050. (a) Except as otherwise provided in this chapter, the
maximum amount of disposable earnings of an individual judgment
debtor for any workweek that is subject to levy under an earnings
withholding order shall not exceed the lesser of the following:
(1) Twenty-five percent of the individual's disposable earnings
for that week.
(2) The amount by which the individual's disposable earnings for
that week exceed 40 times the state minimum hourly wage in effect at
the time the earnings are payable.
(b) For any pay period other than weekly, the following
multipliers shall be used to determine the maximum amount of
disposable earnings subject to levy under an earnings withholding
order that is proportional in effect to the calculation described in
paragraph (2) of subdivision (a), except as specified in paragraph
(1):
(1) For a daily pay period, the amounts shall be identical to the
amounts described in subdivision (a).
(2) For a biweekly pay period, multiply the state hourly minimum
wage by 80 work hours.
(3) For a semimonthly pay period, multiply the state hourly
minimum wage by 862/3 work hours.
(4) For a monthly pay period, multiply the state hourly minimum
wage by 1731/3 work hours.
SEC. 3. This act shall become operative on July 1, 2013.
SEC. 4. In order to implement the provisions of this act, the
Judicial Council shall, on or before July 1, 2013, revise the
instructions contained in the employer's instructions pursuant to
Section 706.127 of the Code of Civil Procedure to specify the method
of computation described in Section 2 of this act.
