House File 628 - Introduced HOUSE FILE 628 BY DE BOEF A BILL FOR An Act eliminating certain specific statutory limits on wage 1 garnishments. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1071YH (2) 84 rh/nh

H.F. 628 Section 1. Section 537.5105, subsection 2, paragraph a, 1 Code 2011, is amended to read as follows: 2 a. In addition to the provisions of section 642.21 , the 3 The maximum part of the aggregate disposable earnings of an 4 individual for any workweek which is subjected to garnishment 5 to enforce payment of a judgment arising from a consumer credit 6 transaction may not exceed the lesser of twenty-five percent 7 of the individual’s disposable earnings for that week, or 8 the amount by which the individual’s disposable earnings for 9 that week exceed forty times the federal minimum hourly wage 10 prescribed by the Fair Labor Standards Act of 1938, 29 U.S.C. § 11 206(a)(1), in effect at the time the earnings are payable. 12 Sec. 2. Section 642.21, subsection 1, Code 2011, is amended 13 to read as follows: 14 1. The disposable earnings of an individual are exempt from 15 garnishment to the extent provided by the federal Consumer 16 Credit Protection Act, Title III, 15 U.S.C. § 1671 – 1677 17 (1982). The maximum amount of an employee’s earnings which 18 may be garnished during any one calendar year is two hundred 19 fifty dollars for each judgment creditor, except as provided 20 in chapter 252D and sections 598.22 , 598.23 , and 627.12 , or 21 when those earnings are reasonably expected to be in excess of 22 twelve thousand dollars for that calendar year as determined 23 from the answers taken by the sheriff or by the court pursuant 24 to section 642.5, subsection 4 . When the employee’s earnings 25 are reasonably expected to be more than twelve thousand dollars 26 the maximum amount of those earnings which may be garnished 27 during a calendar year for each creditor is as follows: 28 a. Employees with expected earnings of twelve thousand 29 dollars or more, but less than sixteen thousand dollars, not 30 more than four hundred dollars may be garnished. 31 b. Employees with expected earnings of sixteen thousand 32 dollars or more, but less than twenty-four thousand dollars, 33 not more than eight hundred dollars may be garnished. 34 c. Employees with expected earnings of twenty-four thousand 35 -1- LSB 1071YH (2) 84 rh/nh 1/ 2

H.F. 628 dollars or more, but less than thirty-five thousand dollars, 1 not more than one thousand five hundred dollars may be 2 garnished. 3 d. Employees with expected earnings of thirty-five thousand 4 dollars or more, but less than fifty thousand dollars, not more 5 than two thousand dollars may be garnished. 6 e. Employees with expected earnings of fifty thousand 7 dollars or more, not more than ten percent of an employee’s 8 expected earnings. 9 Sec. 3. Section 642.22, subsection 1, paragraph a, Code 10 2011, is amended by striking the paragraph. 11 EXPLANATION 12 Under Code section 642.21, an employee’s disposable earnings 13 are exempt from garnishment to the extent provided by the 14 federal Consumer Credit Protection Act. Code section 642.21 15 also contains maximum dollar amounts that may be garnished 16 during any one calendar year. This bill eliminates these 17 statutory limits. 18 -2- LSB 1071YH (2) 84 rh/nh 2/ 2