Wage Garnishment Laws by State 2026 Employee Protection

Can my employer fire me for having a wage garnishment?

Many employees ask: can employer fire for wage garnishment? Federal law prohibits employers from firing employees for wage garnishment for ONE debt.

However, if you have garnishments for TWO or more separate debts, federal law does NOT protect you from termination. Some states (like Alabama for child support orders) provide additional protections.

Source: 15 U.S.C. § 1674

How much of my paycheck can be garnished?

For most consumer debts, the maximum is the LESSER of:

• 25% of your disposable earnings, OR
• The amount by which your disposable earnings exceed 30 times the federal minimum wage ($217.50/week)

However, many states provide GREATER protection (less garnishment allowed).

Child support can be up to 50-65% of disposable earnings.

Student loans and federal debts: up to 15% of disposable earnings.

What if I live in one state but work in another?

The law of the state where you WORK (and where your employer is located) generally applies.

However, if the garnishment order comes from a court in your state of residence, and that court has jurisdiction over your employer, the rules can be complex. Legal representation is available for interstate garnishment matters.

Can Social Security benefits be garnished?

Social Security retirement and disability benefits are generally EXEMPT from garnishment for consumer debts.

Exceptions – Social Security CAN be garnished for:

• Federal tax debts
• Child support and alimony arrears
• Federal student loans (limited to 15% of benefits)
• Other federal debts

Source: 42 U.S.C. § 407

Can my bank account be garnished?

Yes, bank accounts can be garnished even if wages cannot be garnished in your state.

However:

• Exempt funds (Social Security, SSI, VA benefits, etc.) remain protected
• Some states (like Delaware) prohibit bank account garnishment for consumer debts
• Deposited wages may remain exempt in some states if properly traced
• Many states provide automatic protections for minimum account balances

What is “disposable earnings”?

Disposable earnings are the amount left AFTER legally required deductions:

Deductions that ARE subtracted:

• Federal, state, local income taxes
• Social Security and Medicare taxes
• State unemployment insurance (if required)
• Mandatory retirement contributions required by law

Deductions that are NOT subtracted:

• Health insurance
• Life insurance
• 401(k) contributions (unless required by law)
• Union dues
• Charitable giving
• Voluntary wage assignments

Source: 15 U.S.C. § 1673(b)

Can I have multiple wage garnishments at once?

Yes, you can have multiple garnishments, but:

The TOTAL amount garnished cannot exceed federal/state limits.

Priority rules apply:

1. Child support (highest priority)
2. Federal tax levies
3. State tax levies
4. Federal student loans
5. Other judgments

If child support is already taking 50% of your disposable earnings, no additional garnishment for consumer debts can occur.

What happens when I change jobs?

If you have a continuing garnishment order:

Consumer debts: The garnishment order typically terminates when employment ends. The creditor must obtain a new garnishment order against your new employer.

Child support: Automatic withholding typically continues. The support agency will locate your new employer and send a new withholding order. In some states, the original order may transfer automatically.

Student loans and federal debts: Administrative garnishments may continue more easily than consumer debt garnishments.

Always notify the court and creditor of employment changes as required by law.

Can wages in my bank account be garnished?

In most states: YES, once wages are deposited in a bank account, they can be garnished.

However, several states protect deposited wages:

• California: $1,788 automatically exempt (self-executing)
• Florida: Head of household wages remain exempt for 6 months if traceable
• New York: $2,664-$3,600 automatically exempt
• Delaware: Bank accounts cannot be garnished for consumer debts
• Other states: If you can trace the deposits to exempt wages, they may remain protected

Protection depends on:

• State law
• Whether funds are commingled with non-exempt money
• Whether you can prove source of funds
• Type of debt

What if the garnishment is wrong or unfair?

If you believe the garnishment is incorrect:

File a claim of exemption or motion to dismiss within the deadline (typically 20 days).

Common errors:

• Debt not owed
• Amount miscalculated
• Wrong person
• Debt already paid
• Statute of limitations expired
• Bankruptcy discharge
• Employer calculation errors

Response deadlines are strict and typically range from 10-30 days.

Legal representation and legal aid organizations provide assistance with garnishment challenges.

Can tax refunds be garnished?

Yes, tax refunds CAN be garnished.

Federal tax refunds can be offset for:

• Past-due child support
• Federal student loans in default
• State income tax debts
• Federal agency debts
• Unemployment compensation debts

State tax refunds can be offset for:

• State debts and obligations
• Child support
• Student loans (in some states)

Tax refunds are NOT considered “wages” and are NOT protected by wage garnishment exemptions, even head of household exemptions.

Source: Treasury Offset Program (TOP); state offset programs