Today's Law As Amended

PDF |Add To My Favorites | print page

SB-16 Wage garnishment restrictions: exempt earnings: student loans.(2017-2018)



SECTION 1.

 Section 706.053 is added to the Code of Civil Procedure, to read:

706.053.
 (a) For a judgment based in whole or in part on a claim for debt from a student loan that is not made, insured, or guaranteed by the United States Government pursuant to the Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.) or the William D. Ford Federal Direct Loan Program (34 C.F.R. 685.100), 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) Fifteen 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.