Los Angeles partner Pascal Benyamini was quoted in The Press Enterprise, in an article titled, “California: New laws you should know about that take effect July 1.” The article covered several California laws that include news rules for disability insurance, wage garnishment and piecework compensation, among others.
The New Wage and Garnishment Restrictions reduces wage garnishes to the lesser of 25% of weekly pay, or 50% if the net pay exceeds 40 times the state or local minimum wage. Pascal notes that the new law was mainly created to aid minimum-wage earners.
“If someone was making $10 an hour, the state minimum wage, under the previous law there was a potential they could give up almost all their income to garnishment and take very little home,” Pascal said. “In the view of the state, that was putting the individual into further poverty.”