TITLE III OF THE FEDERAL CONSUMER PROTECTION ACT
RESTRICTIONS OF GARNISHMENT
Sec. 301. (a) The Congress finds:
(1) The unrestricted garnishment of compensation due for personal services encourages the making of predatory extensions of
credit: Such extensions of credit divert money into excessive credit payments and thereby hinder the production and flow of goods in
interstate commerce.
(2) The application of garnishment as a creditor’s remedy frequently results in loss of employment by the debtor, and the resulting
disruption of employment, production, and consumption constitutes a substantial burden on interstate commerce.
(3) The great disparities among the laws of the several States relating to garnishment have, in effect, destroyed the uniformity of
the bankruptcy laws and frustrated the purposes thereof in many areas of the country.
(b) On the basis of findings stated in subsection (a) of this section, the Congress determines that the provisions of this title are
necessary and proper for the purpose of carrying into execution the powers of the Congress to regulate commerce and to establish uniform
bankruptcy laws.
(82 Stat. 163; 15 USC 1671.)
Sec. 302. For the purposes of this title:
(a) The term “earnings” means compensation paid or payable for personal services, whether denominated as wages, salary,
commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program.
(b) The term “disposable earnings” means that part of the earnings of any individual remaining after the deduction from those
earnings of any amounts required by law to be withheld.
(c) The term “garnishment” means any legal or equitable procedure through which the earnings of any individual are required to be
withheld for payment of any debt.
(82 Stat. 163; 15 USC 1672)
Sec 303. (a) Except as provided in subsection (b) and in section 305, the maximum part of the aggregate disposable earnings of an
individual for any workweek which is subjected to garnishment may not exceed
(1) 25 per centum of his disposable earnings for that week, or
(2) the amount by which his disposable earnings for that week exceed thirty times the Federal minimum hourly wage prescribed by
section 6(a)(1) of the Fair Labor Standards Act of 1938 in effect at the time the earnings are payable, whichever is less. In the case of
earnings for any pay period other than a week, the Secretary of Labor shall by regulation prescribe a multiple of the Federal minimum
hourly wage equivalent in effect to that set forth in paragraph (2).
(b) The restrictions of subsection (a) do not apply in the case of
(1) any order of any court for the support of any person.
(2) any order of any court of bankruptcy under chapter XIII of the Bankruptcy Act.
(3) any debt due for any State or Federal tax
(c) No court of the United States or any State may make, execute, or enforce any order or process in violation of this section. (82
Stat. 163; 15 USC 1673)
Sec 304. (a) No employer may discharge any employee by reason of the fact that his earnings have been subjected to
garnishment for any one indebtedness.
(b) Whoever willfully violates subsection (a) of this section shall be fined not more than $1,000 or imprisoned not more than one
year, or both.
(82 Stat. 163; 15 USC 1674)
Sec 305. The Secretary of Labor may by regulation exempt from the provisions of section 303 (a) garnishments issued under the
laws of any State if he determines that the laws of the State provide restrictions on garnishments which are substantially similar to those
provided in section 303 (a).
(82 Stat. 164; 15 USC 1675)
Sec 306. The Secretary of Labor, acting through the Wage and Hour Division of the Department of Labor, shall enforce the
provisions of this Title.
(82 Stat. 164; 15 USC 1676)
Sec 307. This title does not annul, alter, or affect, or exempt any person from complying with, the laws of any State
(1) prohibiting garnishments or providing for more limited garnishments than are allowed under this title, or
(2) prohibiting the discharge of any employee by reason of the fact that his earnings have been subjected to garnishment for more
than one indebtedness.
(82 Stat. 164; 15 USC 1677.)
_____ Employer’s Copy