Wage Garnishment in Colorado

Colorado: Dual Enhancement with 20% Cap and 40× State Multiplier

Colorado strengthens the federal baseline on both sides of the garnishment formula: it lowers the percentage cap to 20% (from the federal 25%) AND raises the exemption to 40× the greater of the state or federal minimum wage. Under Colo. Rev. Stat. § 13-54-104, Colorado workers enjoy meaningfully better protection than most of their Mountain West neighbors.

The Colorado Formula

For any workweek, a Colorado worker’s maximum garnishment is the lesser of:

1. 20% of disposable earnings (vs. 25% federal)
2. The amount by which disposable earnings exceed 40× the greater of the state or federal minimum wage ($15.16 × 40 = $606.40/week protected)

Practical Impact

A worker earning $800/week in disposable earnings:

• Colorado: min(20% × $800 = $160, $800 − $606.40 = $193.60) = $160 garnishable
• Federal baseline: min(25% × $800 = $200, $800 − $217.50 = $582.50) = $200 garnishable

The Colorado worker keeps $40 more per week — over $2,000 per year. The benefit is even more pronounced for moderate-income workers where the 20% cap and the higher exemption floor both contribute.

Minimum Wage Context

Colorado’s state minimum wage of $15.16/hour is among the highest in the Mountain West, and the garnishment exemption uses the state minimum wage (since it exceeds the federal rate). A full-time minimum-wage worker earns about $606.40/week — placing them right at the protected floor. Denver ($19.29), Edgewater ($18.17), and Boulder County ($16.82) have higher local minimum wages.

Regional Comparison

Colorado’s dual enhancement puts it ahead of most neighboring states. Wyoming, Utah, and Kansas all follow the bare federal baseline. Nebraska offers a 15% HOH cap. New Mexico uses a 40× state multiplier with a 25% cap. Colorado’s combination of a 20% cap and 40× state-MW floor makes it one of the most worker-friendly states in the region.

Statute: Colo. Rev. Stat. § 13-54-104; 15 U.S.C. § 1673 — 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.