1. CONSUMER CREDITPROTECTION ACT(CCPA): WAGEGARNISHMENTGabriela RosasHuman Resource Vice President

2. OVERVIEW What is CCAP Who is Covered What is Wage Garnishment Federal Laws Protection and Restrictions Examples Additional Assistance 3. WHAT IS CCPA Administered by the Wage and Hour Division Protects employees from discharge by their employers becausetheir wages have been garnished for any one debt Limits the amount of an employee's earnings that may begarnished in any one week 4. WHO IS COVERED All employers and individuals who receive earnings for personalservices including: Wages Salaries, Commissions Bonuses Periodic payments from a pension or retirement program Does not include tips Applies to all 50 states, District of Colombia and all U.S.territories/possesions 5. WHAT IS WAGE GARNISHMENT Any legal or equitable procedure where portion of personsearnings is withheld by an employer for debt payment Typically made by court order Types of legal equitable procedure include: IRS State Tax Collection Does NOT include voluntary wage assignments Employee volunteers that specified amount of earnings be turned over to acreditor(s) 6. FEDERAL LAWS Tittle III administered by the Wage and Hour Division of the U.S.Department of Labors Employment Standards Has no other authority with regard to garnishments For questions on amount withheld refer to court or agencyinitiating action 7. PROTECTION AND RESTRICTIONS Employers are prohibited from discharging employee due to wagegarnishment Regardless of number of levies made or proceedings brought to collect thatdebt because of SINGLE garnishmentIMPORTANT Employers may discharge an employee because earnings areseparately garnished for two or more debts Managers be aware of the difference 1= no discharge < 2= ability to discharge 8. PROTECTION AND RESTRICTIONS The amount of pay is subject to an employees disposable earnings The amount left after legally required deductions Examples: Federal tax State tax Local tax Social security Retirement withholding required by law Deductions not required by law are NOT subtracted from gross earningswhen calculated under CCPA Examples: Health insurance Union Dues Voluntary wage assignments/ charitable donations 9. EXAMPLES Scenario 1: An employee's gross earnings in a particular workweek are $402.00. Afterdeductions required by law, the disposable earnings are $368.00. In this week, 25percent of the disposable earnings may be garnished. ($368.00 25% = $92.00)The employee would be paid $276.00. Scenario 2: An employee paid every other week has disposable earnings of $500.00 for thefirst week and $80.00 for the second week of the pay period, for a total of $580.00.In a biweekly pay period, when disposable earnings are at or above $580.00 forthe pay period, 25% may be garnished; $145.00 (25% $580.00) is subject togarnishment. It does not matter that the disposable earnings in the second weekare less than $217.50. 10. ADDITIONAL ASSISTANCE Wage and Hour Division(http://www.dol.gov/whd/) Contact WHD(http://www.dol.gov/whd/contactform.asp) Tel: 1-866-4USWAGE (1-866-487-9243) TTY: 1-877-889-5627 11. OVERVIEW What is CCAP Who is Covered What is Wage Garnishment Federal Laws Protection and Restrictions Examples Additional Assistance