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MinnesotaSF 284794th Legislature, 2025-2026SenateWALLET

Statutory forms pertaining to garnishment modification

Sponsored By: Liz Boldon (Democratic)

Became Law

Judiciary and Public Safety

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

More income available for debt collection

The law treats more income as earnings for debt collection, including pay to employees, independent contractors, and self-employed people. Certain farm sales and regular pension or retirement payments also count. A party holding your money cannot use your payments from the 10 days before receiving the first garnishment to reduce the amount available. For earnings, debts incurred during that window cannot offset the affected pay, and wage assignments made during it are void.

Workers face pay limits and withholding deadlines

For debts other than child support, employers use the higher Minnesota or federal minimum wage to calculate withholding. Weekly gross pay sets the rate: 0% below 40 times that wage; 10% from 40 times plus $0.01 through 60 times; 15% from 60 times plus $0.01 through 80 times; and 25% from 80 times plus $0.01 upward. Each payday’s withholding cannot exceed the creditor-calculated amount or disposable pay above the protected floor, whichever is less. That floor is 40 times the higher minimum wage per work week, with extra workdays counted proportionally. Employers withhold for paydays in the 90-day period and send the worksheet and money to the sheriff afterward. Workers receive copies within 10 days after the last payday in that period. If the debt is fully paid or the job ends sooner, the final report and money are due within 10 days after the last payday with withholding. Employers skip the worksheet and return the form within 20 days if no earnings are owed now or within 90 days, or weekly earnings do not exceed the higher minimum wage.

Account holders get steps to release money

The law’s account-garnishment forms explain how to claim money protected from collection. Account holders claiming protected funds must return the exemption form with bank statements from the past 60 days. If the creditor does not object, the bank’s instructions direct release six business days after receiving the completed form.

Workers get notice before earnings collection

Before the first earnings levy, the creditor’s lawyer must serve a notice at least 10 days before serving the collection order. The notice explains how to claim protections against collection. Examples include SNAP, MinnesotaCare, Medicare premium help, the Earned Income Tax Credit, the Minnesota Working Family Credit, and the renter’s refund. This notice requirement does not apply when an employer already holds the earnings under a properly served garnishment summons.

Creditors get reports on debtors’ property

A third party receiving a non-earnings garnishment disclosure must report money it owes the debtor. It must also describe the debtor’s personal property, financial documents, or papers it holds and give each item’s value. The report must reach the creditor or the creditor’s lawyer within 20 days after receipt. This helps creditors identify money and property available for collection.

Sponsors & Cosponsors

Sponsor

  • Liz Boldon

    Democratic • Senate

Cosponsors

  • Liebling

    Affiliation unavailable

  • Reyer

    Affiliation unavailable

  • Scott

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 194 • No: 0

House vote • 4/30/2025

Passage

Yes: 133 • No: 0

Senate vote • 4/22/2025

Third Reading

Yes: 61 • No: 0

Actions Timeline

  1. Secretary of State Chapter 18

    5/8/2025Senate

  2. Governor's action Approval

    5/8/2025Senate

  3. Presentment date

    5/6/2025Senate

  4. Returned from House

    5/1/2025Senate

  5. Bill was passed vote: 133-0

    4/30/2025House

  6. Third reading

    4/30/2025House

  7. House rule 1.21, placed on Calendar for the Day Wednesday, April 30, 2025

    4/29/2025House

  8. Second reading

    4/24/2025House

  9. Bills not identical, SF substituted on General Register

    4/24/2025House

  10. Senate file first reading, referred for comparison HF2543

    4/23/2025House

  11. Received from Senate

    4/23/2025House

  12. Third reading Passed as amended vote: 61-0

    4/22/2025Senate

  13. Special Order: Amendeda 2

    4/22/2025Senate

  14. Second reading

    4/1/2025Senate

  15. Comm report: To pass as amendeda 1

    4/1/2025Senate

  16. Referred to Judiciary and Public Safety

    3/20/2025Senate

  17. Introduction and first reading

    3/20/2025Senate

Bill Text

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