16VAC15-21 Maximum Garnishment Amounts

REGULATIONS

Vol. 25 Iss. 20 - June 08, 2009

TITLE 16. LABOR AND EMPLOYMENT

DEPARTMENT OF LABOR AND INDUSTRY

Chapter 21

Final Regulation

REGISTRAR’S NOTICE: The Department of Labor and Industry is claiming an exemption from the Administrative Process Act in accordance with § 2.2-4006 A 4 a of the Code of Virginia, which excludes regulations that are necessary to conform to changes in Virginia statutory law where no agency discretion is involved. The Department of Labor and Industry will receive, consider and respond to petitions from any interested person at any time with respect to reconsideration or revision.

Title of Regulation: 16VAC15-21. Maximum Garnishment Amounts (amending 16VAC15-21-30).

Statutory Authority: § 34-29 of the Code of Virginia.

Effective Date: July 24, 2009.

Agency Contact: Wendy Inge, Director, Division of Labor and Employment Law, Department of Labor and Industry, Powers-Taylor Building, 13 South Thirteenth Street, Richmond, VA 23219, telephone [phone], FAX [phone], TTY [phone], or email [e-mail].

Summary:

In 2007 Congress passed HR2206, U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, which includes a provision that raises the federal minimum wage rate to $7.25 per hour as of July 24, 2009. The amendments reflect this change in the minimum wage.

16VAC15-21-30. Calculation of maximum garnishment amounts for an ordinary debt.

A. Weekly earnings.

1. If the amount of weekly disposable earnings equals 40 times the federal minimum wage rate (F.M.W.R.) or less, nothing may be withheld for garnishment.

2. If the weekly disposable earnings exceed 40 times the federal minimum wage rate (F.M.W.R.), the maximum amount that can be withheld for garnishment shall be either 25% of the weekly disposable earnings or the amount by which the weekly disposable earnings exceed 40 times the F.M.W.R., whichever is less, so long as the amount withheld does not reduce the weekly disposable earnings below 40 times the F.M.W.R. Based on a federal minimum wage rate of $6.55 $7.25 per hour, 40 times the F.M.W.R. is $262 $290. Thus, for example, as of July 24, 2008 2009, if the weekly disposable earnings are less than or equal to $262 $290, nothing may be withheld for garnishment. An increase in the F.M.W.R. will increase the amount of weekly disposable earnings that would be shielded from garnishment.

B. Biweekly earnings. The maximum amount which may be withheld for garnishment from biweekly earnings shall be calculated in the same manner as described for weekly earnings in subsection A of this section, except that the corresponding weekly amounts in subdivisions A 1 and A 2 of this section shall be multiplied by 2.

C. Semimonthly earnings. The maximum amount which may be withheld for garnishment from semimonthly earnings shall be calculated in the same manner as described for weekly earnings in subsection A of this section, except that the corresponding weekly amounts in subdivisions A 1 and A 2 of this section shall be multiplied by 2.16665.

D. Monthly earnings. The maximum amount of monthly disposable earnings which may be withheld for garnishment shall be calculated in the same manner as weekly earnings in subsection A of this section, except that the corresponding weekly amounts in subdivisions A 1 and A 2 of this section shall be multiplied by 4.33330.

E. Earnings for a period of more than one month. The maximum amount which may be withheld in garnishment for work periods in excess of one month shall be calculated in the same manner as described for weekly earnings in subsection A of this section, except that the corresponding weekly amounts in subdivisions A 1 and A 2 of this section shall be multiplied by the number of weeks worked. The number of weeks worked shall be calculated by dividing the total number of days in the period worked by 7, calculated to 4 decimal places.

VA.R. Doc. No. R09-1971; Filed May 18, 2009, 10:39 a.m.