Wage Garnishment Calculator Oregon

Oregon Wage Garnishment Formula:

\[ Garnishment = \min(25\% \text{ Disposable Earnings}, \text{Disposable Earnings} - 40 \times \text{State Min Wage / Week}) \]

Maximum Allowable Garnishment:

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1. What is Wage Garnishment in Oregon?

Wage garnishment in Oregon is a legal procedure where a portion of an employee's earnings is withheld by an employer for the payment of a debt. Oregon law provides specific protections for employees regarding the amount that can be garnished from their wages.

2. How Does the Calculator Work?

The calculator uses the Oregon wage garnishment formula:

\[ Garnishment = \min(25\% \text{ Disposable Earnings}, \text{Disposable Earnings} - 40 \times \text{State Min Wage / Week}) \]

Where:

Disposable Earnings — The amount of earnings remaining after legally required deductions
State Minimum Wage — Oregon's current minimum wage per hour
40 × State Min Wage — Represents the weekly equivalent of full-time work at minimum wage

Explanation: The formula ensures that garnishment doesn't exceed 25% of disposable earnings or reduce earnings below the equivalent of 40 hours at minimum wage, whichever is less.

3. Importance of Wage Garnishment Calculation

Details: Accurate garnishment calculation is crucial for employers to comply with Oregon law, protect employees from excessive garnishment, and ensure proper debt collection procedures.

4. Using the Calculator

Tips: Enter disposable earnings in USD/week and Oregon's current minimum wage in USD/hour. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are disposable earnings?
A: Disposable earnings are the amount remaining after deducting taxes, Social Security, and other legally required withholdings from gross pay.

Q2: Does Oregon have different garnishment limits for different types of debt?
A: Yes, different limits may apply for child support, tax debts, or student loans. This calculator uses the standard consumer debt formula.

Q3: How often can wages be garnished?
A: Garnishment typically continues until the debt is paid in full or otherwise resolved through legal means.

Q4: Are there exemptions from garnishment?
A: Certain types of income may be exempt from garnishment, including Social Security, unemployment benefits, and workers' compensation.

Q5: What if multiple garnishment orders are received?
A: Oregon law provides specific rules for handling multiple garnishments, typically prioritizing certain types of debts over others.