Wage Garnishment California: Creditor Guide to EWOs

Wage garnishment in California is governed by California Code of Civil Procedure §§ 706.010–706.154, which applies exclusively post-judgment: a creditor cannot garnish wages without a valid money judgment. The federal ceiling under the Consumer Credit Protection Act (15 U.S.C. § 1673) caps garnishment at 25% of disposable earnings (earnings after legally required deductions), but California imposes the lower of the federal cap or the amount by which the debtor’s weekly disposable earnings exceed 40 times the California minimum wage (approximately USD 640/week in 2025, making the California floor protection more generous than the federal floor). The critical California exemption: a judgment debtor who is the head of a family and earning USD 750 per week or less may claim a complete exemption from wage garnishment under CCP § 706.050. To enforce a wage garnishment, the creditor first obtains a Writ of Execution under CCP § 699.510, then serves an Earnings Withholding Order (EWO) on the employer. The employer withholds from each paycheck and remits to the levying officer. The debtor has the right to file a Claim of Exemption (Form WG-006) within 10 days of receiving the employer’s Notice of Earnings Withholding, asserting financial hardship. For commercial judgment debtors (corporations, LLCs), wage garnishment is irrelevant — the enforcement levers are bank levy (CCP § 700.140), writ of execution on business assets (CCP § 699.510), keeper’s levy (CCP § 700.070), and charging order on LLC interests (CCP § 708.310). California’s 10% annual post-judgment interest rate means a USD 100,000 judgment accrues USD 10,000/year whether or not garnishment is active.

A Los Angeles logistics company has a USD 85,000 judgment against a former operations manager (individual, personal guarantee on a business lease). The debtor earns USD 4,200/month as a warehouse supervisor. Analysis: (1) Disposable earnings: USD 4,200/month less FICA, state tax, etc. ≈ USD 3,200 disposable. Weekly disposable ≈ USD 738. (2) California minimum wage floor (40 × USD 16/hr = USD 640/week in 2025): disposable earnings (USD 738) minus USD 640 = USD 98/week garnishable. Federal 25% cap = 0.25 × USD 738 = USD 184.50/week. California applies the lower: USD 98/week. At that rate: USD 85,000 ÷ USD 98/week = 867 weeks (~16.7 years) to satisfy. (3) Head of family exemption: if the debtor has dependents and earns ≤ USD 750/week, they can file WG-006 Claim of Exemption and potentially eliminate the garnishment entirely. (4) Better strategy: simultaneously record an Abstract of Judgment in Los Angeles County (CCP § 697.310) to create a lien on any real property the debtor owns or acquires, and run an Order for Examination (CCP § 708.110) to identify bank accounts, vehicle equity, or other assets where a writ of execution is more productive than a 16-year wage garnishment. (5) 10% annual interest: USD 85,000 × 10% = USD 8,500/year accruing regardless — settlement leverage increases with time.

Wage Garnishment California: The Statutory Framework

CCP §§ 706.010–706.154. Step 1: obtain a money judgment. Step 2: apply for Writ of Execution (§ 699.510). Step 3: serve Earnings Withholding Order (EWO) on the employer. Employer withholds from each paycheck and remits to the levying officer. California applies the lower of: (a) federal CCPA cap of 25% of disposable earnings; or (b) the amount by which weekly disposable earnings exceed 40 × California minimum wage (~USD 640/week in 2025). Head of family earning ≤ USD 750/week: full exemption under CCP § 706.050. Debtor has 10 days from employer’s Notice to file a Claim of Exemption (WG-006) asserting financial hardship.

California Debt Collection Laws and the Role of the Final Judgment

No pre-judgment wage garnishment available in California. Wages can only be garnished post-judgment. Foreign creditors: obtain a California judgment via federal diversity jurisdiction (USD 75,000+ threshold, 28 U.S.C. § 1332) or register a foreign judgment under the UFCMJRA (CCP §§ 1713–1724). 10% annual post-judgment interest (Article 15, Section 1 California Constitution) accrues regardless of whether garnishment is active. Judgment enforceable 10 years, renewable indefinitely (CCP § 683.020).

How Much Can Be Garnished: California Limits Versus Federal Law

Federal ceiling: 25% of disposable earnings. California floor protection: wages below 40 × minimum wage are entirely exempt. For the head-of-family exemption (§ 706.050): if weekly disposable earnings ≤ USD 750, the full amount is exempt from garnishment. For higher earners: the 25% federal cap applies. In practice for minimum-wage earners: very little is garnishable — the floor protection largely eliminates the garnishment.

Claim of Exemption and the Debtor’s Procedural Tools

Employer must serve the debtor with a copy of the EWO and a Notice to Employee (WG-012). Debtor has 10 days to file Claim of Exemption (WG-006) and Financial Statement (WG-007) with the levying officer. Hearing is set within 10 days. Creditor bears the burden of opposing the exemption claim. If the creditor does not oppose, the levy is released. Financial hardship is the standard — the debtor must show the garnishment would prevent providing for basic necessities.

Commercial Judgments, Sole Proprietors, and Corporate Debtors

For corporate or LLC judgment debtors: wage garnishment is irrelevant. Use: bank levy (§ 700.140), writ of execution on business assets (§ 699.510), keeper’s levy at retail premises (§ 700.070), charging order on LLC membership interest (§ 708.310), and order for examination (§ 708.110). For sole proprietors with personal guarantees: wages are potentially garnishable but the head-of-family exemption and California’s generous floor protection often make bank levy and real property liens more productive.

Can a debt collector garnish wages in California?

Yes, but only post-judgment. A money judgment must first be obtained in California (or registered from another state/country). The creditor then serves an Earnings Withholding Order on the employer. California applies the lower of the federal 25% CCPA cap or the floor calculated at 40 × minimum wage. Head-of-family debtors earning ≤ USD 750/week can claim a full exemption by filing WG-006 within 10 days.

You know the debt is real. What you need now is someone on the ground in the right jurisdiction who can make it cost the debtor more to ignore it than to pay it. Contact Cosmopolite for a free case assessment. No win, no fee.