ORS § 18.840

Current through 2024 Regular Session legislation effective June 6, 2024

Section 18.840 - [Operative 1/1/2025] Wage exemption calculation form

(1) A wage exemption calculation form must be delivered to the garnishee with each writ of garnishment. Except as provided in subsection (2) of this section, a wage exemption calculation form must be in substantially the following form: For wages paid on or after July 1, 2027, the garnishor is required to update this form with the applicable year and wage exemption amounts published on the Judicial Department website pursuant to ORS 18.385 (3). The garnishor is required to include the wage exemption amounts for wages earned before and after July 1 of the year the garnishment was issued.

WAGE EXEMPTION CALCULATION (to be filled out by employers only)

1. Debtor's gross wages for period covered by this payment................................................. $ ____

2. Total amount required to be withheld by law for amount in Line 1 (Federal and state withholding, Social Security, etc.)........................ $ ______

3. Debtor's disposable wages (Subtract Line 2 from Line 1).......................... $ _____

4. Normal exemption (Enter 75 percent of Line 3)............................... $ _____

5. Minimum exemption (check one) If you pay wages weekly:

__ $254, if the wages are payable before January 1, 2025

__ $305, if the wages are payable on or after January 1, 2025, and before July 1, 2025

__ $338, if the wages are payable on or after July 1, 2025, and before July 1, 2026

__ $400, if the wages are payable on or after July 1, 2026, and before July 1, 2027

__ $__, if the wages are payable on or after July 1, 2027, and before July 1, 2028. Note: The garnishor is required to insert the applicable wage exemption amount published on the Judicial Department website pursuant to ORS 18.385 (3)

__ $__, if the wages are payable on or after July 1, ___ and before July 1, ___. Note: The garnishor is required to insert the applicable years and wage exemption amount published on the Judicial Department website pursuant to ORS 18.385 (3)

If you pay wages every two weeks:

__ $509, if the wages are payable before January 1, 2025

__ $611, if the wages are payable on or after January 1, 2025, and before July 1, 2025

__ $675, if the wages are payable on or after July 1, 2025, and before July 1, 2026

__ $832, if the wages are payable on or after July 1, 2026, and before July 1, 2027

If you pay wages for a half-month period:

__ $545, if the wages are payable before January 1, 2025

__ $655, if the wages are payable on or after January 1, 2025, and before July 1, 2025

__ $737, if the wages are payable on or after July 1, 2025, and before July 1, 2026

__ $912, if the wages are payable on or after July 1, 2026, and before July 1, 2027

If you pay wages monthly:

__ $1,090, if the wages are payable before January 1, 2025

__ $1,309, if the wages are payable on or after January 1, 2025, and before July 1, 2025

__ $1,458, if the wages are payable on or after July 1, 2025, and before July 1, 2026

__ $1,792, if the wages are payable on or after July 1, 2026, and before July 1, 2027

If you pay wages for any other period longer than one week, including partial payments for less than a full pay period:

__ $254 multiplied by that fraction produced by dividing the number of days for which the earnings are paid by seven, rounded to the nearest dollar, if the wages are payable before January 1, 2025

__ $305 multiplied by that fraction produced by dividing the number of days for which the earnings are paid by seven, rounded to the nearest dollar, if the wages are payable on or after January 1, 2025, and before July 1, 2025

__ $338 multiplied by that fraction produced by dividing the number of days for which the earnings are paid by seven, rounded to the nearest dollar, if the wages are payable on or after July 1, 2025, and before July 1, 2026

__ $400 multiplied by that fraction produced by dividing the number of days for which the earnings are paid by seven, rounded to the nearest dollar, if the wages are payable on or after July 1, 2026, and before July 1, 2027

__ The minimum wage that the Bureau of Labor and Industries calculates under ORS 653.025 (1) multiplied by 30 and multiplied again by the number of weeks or fraction of a week, if the wages are payable on or after July 1, 2027

6. Wages exempt from garnishment (Line 4 or 5, whichever is greater).......... $ _____

7. Nonexempt wages (Subtract Line 6 from Line 3).......................... $ _____

8. Amount withheld for this pay period pursuant to a support order under support withholding process or under another writ with priority................ $ _____

9. Wages subject to garnishment (Subtract Line 8 from Line 7).......................... $ _____

INSTRUCTIONS FOR WAGE EXEMPTION CALCULATION FORM

If you employ the Debtor named in the writ of garnishment, you must fill out and return this Wage Exemption Calculation form. A Wage Exemption Calculation form must be sent with the first payment you make under the writ. For the 90-day period during which the writ is effective, you must also fill out and return a Wage Exemption Calculation form with a subsequent payment any time the initial calculation changes. Finally, you must fill out and return a Wage Exemption Calculation form with the final payment that you make under the writ.

Normal wage exemption. The wage exemption calculation is based on the amount of the payment you make under the writ of garnishment. The normal wage exemption in Line 4 is 75 percent of the employee's disposable wages in Line 3.

If the payment is for a one-week period (without regard to whether the period is a calendar week or any other seven-day period), the minimum exemption is:

$254, if the wages are payable before January 1, 2025

$305, if the wages are payable on or after January 1, 2025, and before July 1, 2025

$338, if the wages are payable on or after July 1, 2025, and before July 1, 2026

$400, if the wages are payable on or after July 1, 2026, and before July 1, 2027

$__, if the wages are payable on or after July 1, 2027, and before July 1, 2028. Note: The garnishor is required to insert the applicable wage exemption amount published on the Judicial Department website pursuant to ORS 18.385 (3)

$__, if the wages are payable on or after July 1, ___and before July 1, ___. Note: The garnishor is required to insert the applicable years and wage exemption amount published on the Judicial Department website pursuant to ORS 18.385 (3)

If the payment is for a two-week period, the minimum exemption is:

$509, if the wages are payable before January 1, 2025

$611, if the wages are payable on or after January 1, 2025, and before July 1, 2025

$675, if the wages are payable on or after July 1, 2025, and before July 1, 2026

$832, if the wages are payable on or after July 1, 2026, and before July 1, 2027

$__, if the wages are payable on or after July 1, ___ and before July 1, ___. Note: The garnishor is required to insert the applicable years and wage exemption amount published on the Judicial Department website pursuant to ORS 18.385 (3)

If the payment is for a one-half of one month (i.e. the Debtor is paid twice each month), the minimum exemption is:

$545, if the wages are payable before January 1, 2025

$655, if the wages are payable on or after January 1, 2025, and before July 1, 2025

$737, if the wages are payable on or after July 1, 2025, and before July 1, 2026

$912, if the wages are payable on or after July 1, 2026, and before July 1, 2027

If the payment is for a monthly period, the minimum exemption is:

$1,090, if the wages are payable before January 1, 2025

$1,309, if the wages are payable on or after January 1, 2025, and before July 1, 2025

$1,458, if the wages are payable on or after July 1, 2025, and before July 1, 2026

$1,792, if the wages are payable on or after July 1, 2026, and before July 1, 2027

$__, if the wages are payable on or after July 1, ___, and before July 1,___. Note: The garnishor is required to insert the applicable years and wage exemption amount published on the Judicial Department website pursuant to ORS 18.385 (3)

If the payment you are making is based on some period of time other than one week, two weeks, half month or month, and the payment is for more than one week, you must calculate the minimum exemption by multiplying the minimum exemption for one week or less provided for in ORS 18.385 (2)(a) by the number of weeks covered by the paycheck, including any fraction of a week. You should round the amount calculated to the nearest dollar.

The amounts that are exempt from garnishment may change from year to year. You may view updated garnishment exemption limitations on the Oregon Judicial Department website.

If you receive more than one writ of garnishment. If you receive more than one writ of garnishment for the same debtor, the writs have priority based on the date on which you receive them. If the full amount of wages subject to garnishment for a given pay period is paid on the first writ, you should not make any payment on subsequently received writs until the first writ expires. In some cases, it may be necessary to make payments on two or more writs for the same pay period.

Example : You have received two writs of garnishment for Debtor A. You pay Debtor A on a monthly basis. The first writ expires on October 16. The second writ will not expire until November 15. You will need to prepare two wage exemption calculation forms for Debtor A's October wages and make payments under both writs. The wage exemption calculation form for the first writ will be for the wages attributable to October 1 to October 15 . The wage exemption calculation form for the second writ will be for all wages for the month of October, but the amounts withheld under the first writ must be subtracted on Line 8 to determine the October wages subject to garnishment under the second writ.

(2) If a writ of garnishment includes or is attached to a notice from a state or federal child support agency or includes or is attached to an attestation that a debt arises out of a judgment debtor's child support or spousal support obligation or a money award judgment that includes restitution, the wage exemption calculation form described in subsection (1) of this section must be modified to read as follows:

WAGE EXEMPTION CALCULATION (to be filled out by employers only)

1. Debtor's gross wages for period covered by this payment;...................................... $ ____

2. Total amount required to be withheld by law for amount in Line 1 (Federal and state withholding, Social Security, etc.)................. $ _____

3. Debtor's disposable wages (Subtract Line 2 from Line 1)................... $ ____

4. Normal exemption (Enter 75 percent of Line 3)........................ $ _____

5. Minimum exemption (check one)

__ $254 (payment of wages weekly)

__ $509 (payment of wages every two weeks)

__ $545 (payment of wages half-monthly)

__ $1,090 (payment of wages monthly)

__ $____ (Any other period longer than one week, including partial payments for less than full pay period) (Multiply $254 by number of weeks or fraction of a week)

6. Wages exempt from garnishment (Line 4 or 5, whichever is greater)..... $ _____

7. Nonexempt wages (Subtract Line 6 from Line 3)................... $ ____

8. Amount withheld for this pay period pursuant to a support order under support withholding process or under another writ with priority.......... $ _____

9. Wages subject to garnishment (Subtract Line 8 from Line 7)................... $ ____

INSTRUCTIONS FOR WAGE EXEMPTION CALCULATION FORM

Minimum wage exemption. The minimum exemption in Line 5 is also based on the amount of the payment you are making. The minimum exemption is designed to ensure that an employee receives at least a certain minimum amount in any one-week period. If the payment is for a one-week period (without regard to whether the period is a calendar week or any other seven-day period), the minimum exemption is $254. The minimum exemption is $509 if the payment is for a two-week period. If the payment is for one-half of one month (i.e., the Debtor is paid twice each month), the minimum exemption is $545. The minimum exemption for a monthly payment is $1,090.

If the payment you are making is based on some period of time other than one week, two weeks, half month or month, and the payment is for more than one week, you must calculate the minimum exemption by multiplying $254 by the number of weeks covered by the paycheck, including any fraction of a week. You should round the amount calculated to the nearest dollar.

Example 1: You pay Debtor A every 10 days. Each 10-day period is equal to 1.429 weeks (10 divided by 7). The minimum exemption is $363 ($254 X1.429 rounded to the nearest dollar).

You must use this same calculation for computing the minimum exemption when making a payment for less than a full pay period (e.g., for the final payment at the end of the 90-day period covered by the writ).

Example 2: You pay Debtor A on a monthly basis. You are required to make a final payment under a writ of garnishment for the wages owing to Debtor A for the period beginning October 1 and ending October 15. This period is equal to 2.143 weeks (15 divided by 7). The minimum exemption is $544 ($254 X 2.143 rounded to the nearest dollar).

The amount of time actually worked by the Debtor during the period covered by the paycheck does not affect the calculation of the minimum exemption.

Example 3: You pay Debtor A on a weekly basis. Debtor A works two days per week. The minimum exemption is $254 for each weekly payment you make for Debtor A.

If the payment you are making is based on a period of time less than one week, the minimum wage exemption may not exceed $254 for any one-week period.

Example 4: You have received two writs of garnishment for Debtor A. You pay Debtor A on a monthly basis. The first writ expires on October 16. The second writ will not expire until November 15. You will need to prepare two wage exemption calculation forms for Debtor A's October wages and make payments under both writs. The wage exemption calculation form for the first writ will be for the wages attributable to October 1 to October 15 as described in Example 2. The wage exemption calculation form for the second writ will be for all wages for the month of October, but the amounts withheld under the first writ must be subtracted on Line 8 to determine the October wages subject to garnishment under the second writ.

ORS 18.840

Amended by 2024 Ch. 100,§ 16, eff. 4/4/2024, op. 1/1/2025.

Amended by 2019 Ch. 263, § 2, eff. 1/1/2020.

2001 c.249 §63; 2003 c. 85, § 20; 2007 c. 496, §§ 10, 15; 2011 c. 228, § 2

This section is set out more than once due to postponed, multiple, or conflicting amendments.