Wage Garnishment in Michigan

Michigan: Federal Baseline with Scheduled Wage Increases

Michigan follows the federal baseline CCPA limits under Mich. Comp. Laws § 600.4012, with no significant state-level garnishment enhancements. The NCLC gave Michigan an ‘F’ grade in its 2024 report. However, Michigan’s minimum wage is on an upward trajectory, with scheduled increases and inflation indexing that will strengthen the effective protection for low-wage workers over time.

The Minimum Wage Context

Michigan’s $10.56 minimum wage provides a better earnings base than the federal $7.25 floor. A full-time minimum-wage worker earns approximately $422/week, with $217.50 protected — leaving $204.50 exposed, of which up to $51 could be garnished. The worker retains at least $371/week.

Michigan’s minimum wage is scheduled to increase incrementally and is now indexed to CPI for future adjustments. As the minimum wage rises, the effective garnishment protection improves somewhat — though the $217.50 protected floor remains tied to the unchanged federal $7.25 rate.

Great Lakes Comparison

Michigan’s protections sit in the middle of the Great Lakes region. Illinois provides dramatically stronger protection with a 15% gross cap and 45× state minimum wage exemption. Wisconsin uses a unique poverty-guideline-based exemption. Minnesota uses a 40× multiplier. Ohio and Indiana match Michigan’s federal-default approach, though Ohio’s minimum wage ($10.70, adjusted annually) is comparable to Michigan’s. Among the Great Lakes states, Michigan and Ohio form a middle tier — not as protective as Illinois or Wisconsin, but with better wage floors than Indiana.

The NCLC ‘F’ Context

Michigan’s ‘F’ grade reflects not just wage garnishment rules but also weak asset exemptions. The state’s $30,000/$45,000 homestead exemption (individual/family) is modest for a state with Michigan’s housing costs, and personal property exemptions are limited. The report highlighted that Michigan has not meaningfully updated its debtor protections in decades.

What Michigan Workers Should Know

Michigan workers facing garnishment have only the federal CCPA as their primary wage shield. Workers near the Illinois, Wisconsin, or Minnesota borders may find substantially stronger protections literally miles away.

Statute: Mich. Comp. Laws § 600.4012; 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.