California significantly increases the wage floor exempt from creditor garnishments by tying the exemption formula to 48 times the state minimum wage.
Under California Senate Bill 1477, the calculation for consumer debt garnishments was modified from the federal 30× formula to an enhanced 48× minimum wage multiplier. Furthermore, the maximum deduction rate drops from 25% to 20% of disposable earnings exceeding the floor. For employers with workers in California, payroll algorithms must be updated to ensure compliance with the local living wage escalation schedule.