Federal law allows a minimum wage to be earned that is not subject to garnishment. After the federal minimum earnings requirements are met, Georgia law allows garnishment of one fourth of a defendant's net income per pay period. State and federal law also protect retirement plans from garnishment.
Federal exemption requirements for wage garnishmentsGeorgia law sets up some wage exemptions for wages in continuing garnishment cases. Subsection (d) (1) of this Code Section states that the maximum part of the aggregate disposable earnings of an individual for any one work week which is subject to garnishment may not exceed the lesser of:
(A) Twenty five percent of his disposable earnings for that week; or
(B) The amount by which his disposable earnings for that week exceed
30 times the federal minimum hourly rate prescribed by 29 U.S.C ? 206 (a) (1), at the time the earnings are payable.
In the case of earnings paid other than weekly, a multiple of the federal minimum hourly wage equivalent may be used. In addition, the same code section provides that a garnishee may be served with more than one garnishment at one time on a particular employee, and the exemption limitations of this Code Section apply even though the employer is served with more than one garnishment.
Pension and retirement funds benefits exemptionsGeorgia law exempts from the process of garnishment funds from a pension or retirement program as defined in 29 U.S.C Section 1002(2)(A), or benefits from a individual retirement account as defined in Section 408 of the Internal Revenue Code of 1986. This would include traditional and ROTH IRAs, IRAs, 401(k) plan benefits, 403 (c) plan benefits, and all public and private retirement and pension plans. Several other statutes in Georgia exempt the retirement of public employees from any garnishment and or collection activities of creditors. This includes the Teacher Retirement System of Georgia, and the Georgia State Employees Retirement System.