Oregon Increases Creditor Garnishment Limits - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- 1 day ago
- 1 min read
Oregon Increases Creditor Garnishment Limits
Effective Date: July 1, 2026
Oregon is increasing the thresholds that determine how much of an employee’s wages can be garnished for creditor debts.
Beginning July 1, 2026, the maximum garnishment amount remains the lesser of 25% of disposable earnings or the amount exceeding updated protected earnings thresholds.
Updated Thresholds
$400 per week (previously $338)
$832 for pay periods longer than one week (previously $675)
$912 for semimonthly pay periods (previously $737)
$1,792 for monthly pay periods (previously $1,458)
What This Means
More employee wages are protected from garnishment
Employers must apply the updated thresholds when calculating garnishments
Payroll systems must be updated to reflect the new limits
Looking Ahead
Beginning July 1, 2027, these thresholds will automatically adjust based on Oregon’s minimum wage
Why It Matters
Incorrect garnishment calculations can create compliance risk and employee relations issues. Employers should ensure payroll processes reflect the updated limits.
What Employers Should Do
Update payroll systems with the new garnishment thresholds
Review current garnishment orders for compliance
Coordinate with payroll providers to ensure accurate calculations
Train payroll teams on applying the updated limits
Reference: Or. Rev. Stat. § 18.385.
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