Wage Garnishment in Alabama

Alabama: Federal Baseline in the Deep South

Alabama follows the federal baseline CCPA limits for wage garnishment under Ala. Code § 6-10-7, offering no additional state-level protections beyond the federal floor. This means creditors can garnish up to 25% of disposable earnings or the amount above 30× the federal minimum wage ($217.50/week), whichever is less.

Minimum Wage Context

Alabama is one of only five states with no state minimum wage law, defaulting entirely to the federal $7.25/hour. This has significant implications for wage garnishment: a full-time minimum-wage worker in Alabama earns just $290/week, with $217.50 protected — leaving only $72.50 potentially garnishable but representing a full 25% of disposable earnings.

The absence of a state minimum wage means Alabama workers have the weakest possible earnings floor in the country, which compounds the impact of the federal-default garnishment rules. When both the wage base and the garnishment protection are at the federal minimum, workers are doubly exposed.

Comparison to Neighboring States

Alabama’s protections are weaker than most of its neighbors. Florida offers a strong $750/week head-of-household exemption and a $13.00 minimum wage. Georgia matches Alabama’s federal default but shares the $7.25 minimum wage. Mississippi similarly follows the federal baseline. Tennessee has no state minimum wage and follows federal garnishment limits. Within this region, Alabama represents the baseline of minimal protection — no enhancements, no state minimum wage, and no HOH provisions.

Practical Implications

For the typical Alabama worker facing a debt collection judgment, there are few state-specific defenses to limit garnishment. Workers should be aware that claiming head-of-household status does not provide additional protection in Alabama (unlike in Florida), and the state’s modest homestead exemption ($16,450) offers limited asset protection alongside the standard wage garnishment rules.

Statute: Ala. Code § 6-10-7; 15 U.S.C. § 1673 (federal CCPA) — Official source

This calculator is for consumer debt garnishment only. Not legal advice. Rules vary by debt type (student loans, child support, taxes). Verify with official sources before making any financial or legal decisions.