Wages Protected from Ganishment Increased this July

The federal Consumer Credit Protection Act wage garnishment provisions exempt a portion of a consumer's earning from garnishment, the amount being tied to the federal minimum wage. In July, the minimum wage increased to $7.25 per hour, so that the amount of an employee's disposable earning totally exempt from ganishment increases to $217.50 for the week in question. Only the amount over $217.50 can be garnished when disposable earnings exceed $217.50 but are less than $290.00 If the disposable earnings are more than $290, up to 25% of those earnings may be garnished. However, state law should be checked, as state rules may provide for greater protection.