New Jersey Minimum Wage Increase Affects New Wage Execution/Garnishment Orders

In connection with the July 24, 2009 minimum wage increase from $6.55 to $7.25 per hour, the New Jersey Supreme Court recently ordered that any wage execution/garnishment orders issued after July 24 will reflect a higher base amount of disposable weekly earnings under which no amount of wages may be withheld or garnished. Specifically, as of July 24, 2009, the base amount of disposable weekly earnings increases from $196.50 to $217.50; for earnings paid every two weeks, the base amount increases from $393.25 to $435.00; for earnings paid twice monthly, the increase is from $425.75 to $471.25; and for earnings paid monthly, the increase is from $851.50 to $942.50. Wage execution/garnishment orders issued prior to July 24, 2009 will not be affected by this order.

Note: This article was published in the August 2009 issue of the New Jersey eAuthority.