Consumer Credit Protection

 

To provide restrictions on the amount of an employee's wages or salary which may be garnisheed, and to prohibit employers from discharging employees by reason of garnishment for any one indebtedness.

Deleted 04/02/2020 (Archived.) 17.306 Agency: Department of Labor
Office: Wage and Hour Division ADVISORY SERVICES AND COUNSELING; INVESTIGATION OF COMPLAINTS Not Applicable. Consumer Credit Protection Act, Public Law 90-321, 5 U.S.C. 1671-1677, as amended; Public Law 95-30. Any person whose earnings have been subjected to garnishment is entitled to the protection provided by the Act in the United States, the District of Columbia, Puerto Rico, the Virgin Islands; Outer Continental Shelf lands defined in the Outer Continental Shelf Lands Act (Chapter 345, 67 Stat. 462); American Samoa, Guam, Wake Island; and Johnston Island. Under the law, earnings are defined as compensation paid or payable for personal services, including wages, salary, commissions, bonuses, and including periodic payments pursuant to a pension or retirement program. Any person whose earnings have been subjected to garnishment. No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87. Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Persons having knowledge of wage and employment practices which are not in compliance with the minimum standards of these acts, and persons seeking advice or assistance concerning the application of the Federal wage garnishment law to specific situations, including persons seeking remedy to an illegal action under the law, should contact the nearest office of the Wage and Hour Division listed in the telephone directory under United States Government, Labor Department. If no listing is shown for you locality, contact the nearest district office of the Wage and Hour Division listed in the Catalog under Regional Agency Offices. Unless otherwise authorized, the names of persons making inquiries are kept confidential to the maximum extent possible under existing law. Not applicable. Not Applicable. Not applicable. Not applicable. Not applicable. Not Applicable. The general rules for applying the Federal restrictions on garnishment are: If an individual's weekly disposable earnings are $196.50 or less, no amount may be garnished; if the weekly disposable earnings are more than $217.50 but less than $290.00, only the amount in excess of $217.50 may be garnished; and if the weekly disposable earnings are in excess of $290.00 or more, 25 percent of disposable earnings may be garnished. The Act, as amended, limits court orders for the support of any person to 50 percent of the disposable earnings of an individual supporting another spouse or child and to 60 percent of disposable earnings if not. An additional 5 percent may be garnished for support payments more than 12 weeks in arrears. The order must be issued by a court of competent jurisdiction or in accordance with an administrative procedure, which is established by law, which affords substantial due process, and which is subject to judicial review. The restrictions do not apply under Federal bankruptcy proceedings for wage-earners, nor do they apply to debts due for State or Federal taxes. In addition, garnishments issued under the laws of any State may be exempted from the operation of the Federal law where the Secretary of Labor determines that such laws provide substantially similar restrictions. Under no circumstances may an employee be discharged from employment by reason of garnishment for any one indebtedness, although State laws may provide additional protection. Not Applicable. Not Applicable. Not applicable. This program has no statutory formula.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program. Not applicable. See the following for information on how assistance is awarded/released: Not applicable. See Regional Agency Offices. Persons having knowledge of wage and employment practices which are not in compliance with the minimum standards of these acts, and persons requesting information or publications should contact the nearest Office of the Wage and Hour Division, listed in the telephone directory under United States Government, Labor Department. If no listing is shown for your locality, contact the nearest district office of the Wage and Hour Division, listed in the Catalog under Regional Agency Offices. Robert DeVore, 200 Constitution Ave., N.W., Washington, District of Columbia 20210 Email: devore.robert@dol.gov Phone: (202) 693-0539. http://www.dol.gov./WHD/garnishment/index.htm 16-0105-0-1-505. (Salaries) FY 09 $193,092,000; FY 10 est $227,606,000; and FY 11 est $244,240,000 not applicable. Publications furnished free in limited quantities: Fact Sheet: The Federal Wage Garnishment Law, Regulations, 29 CFR Part 870: Restriction on Garnishment. Not Applicable.