Hawaii House Bill HB1269

Hawaii 2022 Regular Session

• Introduced: 1/27/21
• Refer: 2/1/21

Caption

Relating To Wage Garnishment.

Impact

If enacted, HB 1269 will modify Section 652-1 of the Hawaii Revised Statutes to enhance the welfare of workers facing wage garnishment. Specifically, it seeks to ensure that individuals are not pushed into bankruptcy due to uncompromising garnishment policies. The proposal is especially relevant given Hawaii's high living costs, potentially preventing individuals from struggling to afford basic necessities such as housing and food. The amendment will also align state law with the realities of living in Hawaii, thus providing a more equitable approach to wage garnishment.

Summary

House Bill 1269 addresses the issue of wage garnishment in the state of Hawaii, specifically focusing on how disposable earnings are calculated for individuals subjected to such legal processes. Historically, Hawaii allows creditors to garnish a percentage of an employee's wages for debt repayment, which includes a tiered structure for the garnished amount. However, the bill introduces an important amendment that incorporates cost of living expenses into the calculation of disposable earnings, acknowledging that individuals in Hawaii often experience a high cost of living. By allowing these expenses to be factored in, the bill seeks to protect employees from excessive financial burdens due to wage garnishment.

Contention

The bill recognizes that current garnishment practices may lead to undue hardship and aims to mitigate this concern by adjusting the figures used in calculating disposable earnings. Nonetheless, changes to wage garnishment laws can provoke debate among creditors and consumer advocates. Some creditors may express concern that broader exemptions could hinder their ability to recoup debts, while advocates for the working class argue that the bill serves to protect vulnerable populations from financial exploitation. As with any legislative change, the balance between creditor rights and the financial well-being of employees will be a central point of discussion.