Mass-Peculiarities: An Employers Guide to Wage & Hour Law in the Bay State 2022 Edition

© 2022 Seyfarth Shaw LLP Massachusetts Wage & Hour Peculiarities, 2022 ed. | 143 formulas. 837 The garnishment is limited to the smaller of either 25 percent of the week’s disposable earnings, or the amount of weekly pay that exceeds thirty times the federal minimum wage. 838 To determine the permissible garnishment amount, Massachusetts employers must calculate all possible garnishment limits under state and federal law. The smallest amount produced by the different formulas is the maximum wage that may be garnished. 839 The following table provides an example of garnishment calculations for a Massachusetts employee earning $16.00 per hour, using the current federal minimum wage of $7.25 per hour in the CCPA formulas. Calculating the Maximum Garnishment for a Massachusetts Employee Earning $20.00 per Hour with a 2021 Massachusetts Minimum Wage of $13.50 per Hour and a Federal Minimum Wage of $7.25 per Hour • Step 1: Calculate disposable earnings (those wages left over after mandatory withholdings). We assume weekly earnings of $800.00 ($20.00 per hour x 40 hours worked) and disposable earnings of $600.00 per week. • Step 2: Massachusetts calculation #1. Total weekly earnings of $800.00 - $675 (50 x $13.50 minimum wage, which exceeds $7.25 federal minimum wage) = $125.00 maximum weekly garnishment. • Step 3: Massachusetts calculation #2. 15% of $800.00 in total weekly earnings = $120.00 maximum weekly garnishment. • Step 4: CCPA calculation #1. 25% of $600.00 in disposable earnings =$150.00 maximum weekly garnishment. • Step 4: CCPA calculation #2. $600.00 in diposable earnings - $217.50 (30 x $7.25 minimum wage) = $382.50 maximum weekly garnishment. • Step 5: Use the lowest garnishment amount of $120 per week. B. Garnishments for Support Orders When net wages are garnished pursuant to child or spousal support orders, the employee receives less protection under both Massachusetts and federal law. Under Massachusetts law, the statutory exemption does not apply to support orders; instead, state law provides that the federal law limiting the amounts which may be attached shall apply. 840 The CCPA allows larger garnishments for support orders—up to 50 percent of a week’s disposable earnings if the employee supports a spouse or child other than the one indicated in the support order (e.g., he or 837 15 U.S.C. § 1673(a). 838 Id . 839 Id. 840 M.G.L. ch. 246, § 28.