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Oregon Wage Garnishment Exemption Formula:
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The Oregon wage garnishment exemption protects a portion of a worker's earnings from being garnished. It ensures that creditors cannot take all of a debtor's wages, leaving them with enough to meet basic living expenses.
The calculator uses the Oregon wage garnishment exemption formula:
Where:
Explanation: The exemption is the greater of either 75% of disposable earnings or an amount equivalent to 40 hours at federal minimum wage.
Details: Accurate calculation ensures compliance with Oregon law while protecting both creditors' rights and debtors' ability to meet basic needs.
Tips: Enter disposable earnings (after taxes and other required deductions) and current federal minimum wage. The calculator will determine the exempt portion and the amount that can be garnished.
Q1: What counts as disposable earnings?
A: Earnings after deductions required by law (taxes, Social Security, etc.), but before voluntary deductions like health insurance or retirement contributions.
Q2: Is the federal minimum wage always used?
A: Yes, Oregon uses the federal minimum wage for this calculation regardless of the state's higher minimum wage.
Q3: Are there different rules for child support?
A: Yes, child support garnishments follow different rules and typically allow higher garnishment amounts.
Q4: How often is this calculated?
A: The exemption is calculated each pay period based on that period's earnings.
Q5: Are bonuses and commissions included?
A: Yes, all forms of compensation are included in disposable earnings for garnishment purposes.