Bill Text: CA SB501 | 2015-2016 | Regular Session | Chaptered


Bill Title: Wage garnishment restrictions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-10-11 - Chaptered by Secretary of State. Chapter 800, Statutes of 2015. [SB501 Detail]

Download: California-2015-SB501-Chaptered.html
BILL NUMBER: SB 501	CHAPTERED
	BILL TEXT

	CHAPTER  800
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2015
	APPROVED BY GOVERNOR  OCTOBER 11, 2015
	PASSED THE SENATE  SEPTEMBER 10, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 9, 2015
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2015
	AMENDED IN ASSEMBLY  AUGUST 27, 2015
	AMENDED IN ASSEMBLY  JULY 9, 2015
	AMENDED IN SENATE  APRIL 28, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator Wieckowski

                        FEBRUARY 26, 2015

   An act to amend, repeal, and add Section 706.050 of the Code of
Civil Procedure, relating to wage garnishment.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 501, Wieckowski. Wage garnishment restrictions.
   The Wage Garnishment Law prescribes the procedure for withholding
an employee's earnings for purposes of paying a debt. The law
requires that a levy of execution upon the earnings of an employee be
made by service of an earnings withholding order upon the employer.
An earnings withholding order is issued by a levying officer upon
receiving an application submitted by a judgment creditor, as
specified. Existing law prohibits 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, as specified, unless an exception applies. An employer is
required, except as otherwise provided by statute, to withhold the
amounts required by an earnings withholding order from all earnings
of the employee payable for any pay period of the employee which ends
during the withholding period.
   This bill would, commencing July 1, 2016, reduce the prohibited
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
50% of the amount by which the individual's disposable earnings for
the week exceed 40 times the state minimum hourly wage, or applicable
local minimum hourly wage, if higher, in effect at the time the
earnings are payable.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  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.
   (c) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 2.  Section 706.050 is added to the Code of Civil Procedure,
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) Fifty percent of 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. If a
judgment debtor works in a location where the local minimum hourly
wage is greater than the state minimum hourly wage, the local minimum
hourly wage in effect at the time the earnings are payable shall be
used for the calculation made pursuant to this paragraph.
   (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 applicable hourly
minimum wage by 80 work hours.
   (3) For a semimonthly pay period, multiply the applicable hourly
minimum wage by 862/3 work hours.
   (4) For a monthly pay period, multiply the applicable hourly
minimum wage by 1731/3 work hours.
   (c) This section shall become operative on July 1, 2016.
  
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