The federal cap on wage garnishment: 15 USC §1673

The statute, verbatim

"[T]he maximum part of the aggregate disposable earnings of an individual for any workweek which is subjected to garnishment may not exceed (1) 25 per centum of his disposable earnings for that week, or (2) the amount by which his disposable earnings for that week exceed thirty times the Federal minimum hourly wage prescribed by section 206(a)(1) of title 29 in effect at the time the earnings are payable, whichever is less."

15 USC §1673(a) (opens in a new tab)

What "disposable earnings" means

Disposable earnings = gross earnings minus amounts required by law to be withheld. That includes federal income tax, state income tax, FICA (Social Security + Medicare), and court-ordered withholdings. Voluntary deductions — 401(k) contributions, health insurance, union dues, savings, stock-purchase plans — do not reduce disposable for §1673 purposes. This trips people up regularly. The federal definition is at 15 USC §1672(b) (opens in a new tab).

The 30× federal-minimum-wage floor

The §1673(a)(2) floor protects a baseline amount of weekly disposable earnings from any consumer-judgment garnishment. At a federal minimum wage of $7.25, the per-workweek floor is 30 × $7.25 = $217.50. For biweekly, semimonthly, and monthly pay, the floor scales with workweeks-in-period:

• Weekly: $217.50
• Biweekly: $435.00
• Semimonthly: $471.25
• Monthly: $942.50

The federal minimum wage has been $7.25 since 2009. If Congress raises it, the floor rises automatically.

Three worked examples — weekly pay

1. Example 1 — $300 gross, $250 disposable. 25% × $250 = $62.50. Floor 30 × $7.25 = $217.50. Amount above floor: $250 − $217.50 = $32.50. Lesser of $62.50 and $32.50: $32.50 max garnishable.

2. Example 2 — $500 gross, $400 disposable. 25% × $400 = $100. Floor $217.50. Amount above floor: $400 − $217.50 = $182.50. Lesser of $100 and $182.50: $100 max garnishable.

3. Example 3 — $200 gross, $180 disposable. Disposable is below the $217.50 floor. $0 max garnishable — full protection. The full paycheck is shielded from consumer-judgment garnishment.

Exceptions — federal regimes that bypass §1673

Child support

Child-support orders override the §1673(a) consumer-judgment cap with their own ceiling at 15 USC §1673(b)(2) (opens in a new tab):

• 60% disposable max if the worker does NOT also support another spouse / dependent
• 50% disposable if they DO support another family
• Add 5% (so 55% or 65%) if 12+ weeks in arrears

Child support takes priority over consumer-judgment writs — a consumer judgment can only stack onto whatever is left below the §1673 cap.

Federal student loans

Administrative wage garnishment for defaulted federal student loans is capped at 15% of disposable per 20 USC §1095a (opens in a new tab). No state-court judgment required.

Federal tax debt

The IRS uses its own table under 26 USC §6334(d) (opens in a new tab) (Publication 1494) — the exempt amount depends on filing status and dependents. The §1673 cap does not apply.

State overlays

Many states cap consumer wage garnishment below the federal 25% — NY at 10% of gross, IL at 15%, MA at 15%, NJ at 10%, others. Texas, Pennsylvania, North Carolina, and South Carolina prohibit consumer-debt wage garnishment outright (with statutory carve-outs). Florida has a strong head-of-family exemption: a $750/week automatic floor plus a written-waiver carve-out above the floor. See the state grid: