ORS 18.385
Wage exemption

Amended by SB 1595

Effective since April 4, 2024

Relating to protections from debt collection; creating new provisions; amending ORS 18.345, 18.348, 18.385, 18.395, 18.402, 18.412, 18.600, 18.618, 18.658, 18.785, 18.787, 18.788, 18.790, 18.835, 18.838, 18.840, 18.845, 18.847, 18.854, 18.855, 18.888, 18.892, 18.896, 646.639 and 646.641 and ORCP 84 D; repealing ORS 18.784 and 646.643; and declaring an emergency.

Text
Annotations 6

Mentioned in

Discrimination at Work

Oregon Bureau of Labor & Industries, August 7, 2023

"Oregon laws protect you from being discriminated against at work. That means you can’t be fired or demoted, paid less, or otherwise treated differently because of certain characteristics about you."

Bibliographic info

(1)

Except as provided in this section, 75 percent of the disposable earnings of an individual are exempt from execution.

(2)

The disposable earnings of an individual are exempt from execution to the extent that payment under a garnishment would result in net disposable earnings for an individual of less than the following amounts:

(a)

$254 for any period of one week or less;

(b)

$509 for any two-week period;

(c)

$545 for any half-month period;

(d)

$1,090 for any one-month period; and

(e)

For any other period longer than one week, $254 multiplied by that fraction produced by dividing the number of days for which the earnings are paid by seven. The amount calculated under this paragraph must be rounded to the nearest dollar.

(3)

If an individual is paid for a period shorter than one week, the exemption calculated under subsection (2) of this section may not exceed $254 for any one-week period.

(4)

An employer shall deduct from the amount of disposable earnings determined to be nonexempt under subsections (1) to (3) of this section any amounts withheld from the individual’s earnings for the same period of time under an order issued pursuant to ORS 25.378 (Payment of support by income withholding) or 419B.408 (Enforcement of support order) or ORS chapter 110. The employer shall make payment under a garnishment only of those amounts remaining after the deduction is made.

(5)

Subsections (1) to (4) of this section do not apply to:

(a)

Any order of a court of bankruptcy.

(b)

Any debt due for federal tax.

(6)

Subsections (2) to (4) of this section do not apply to any debt due for state tax. Subsection (1) of this section does not apply to a debt due for state tax if a state agency issues a special notice of garnishment under ORS 18.855 (Notices of garnishment issued by state agencies) (6).

(7)

A court may not make, execute or enforce any order or process in violation of this section.

(8)

Any waiver by an individual of the provisions of this section is void.

(9)

An employer may not discharge any individual because the individual has had earnings garnished. [Formerly 23.186; 2007 c.496 §§9,14; 2011 c.228 §1; 2019 c.263 §1; 2021 c.597 §41]

Source: Section 18.385 — Wage exemption, https://www.oregonlegislature.gov/bills_laws/ors/ors018.html (accessed May 26, 2025).

Notes of Decisions

Under former similar statute (ORS 23.185)

Social security benefits are earnings subject to garnishment limitations where not otherwise totally exempted by [former] ORS 23.166. Hobson v. Hobson, 136 Or App 516, 901 P2d 914 (1995)

Debtor may exempt earnings from garnishment only where employer-employee relationship exists. In re Osworth, 234 B.R. 497 (9th Cir. BAP 1999)

Earnings excluded from garnishment are exempt in bankruptcy. In re Robinson, 241 B.R. 447 (9th Cir. BAP 1999); In re Platt, 270 B.R. 773 (Bkrtcy. D. Or. 2001)

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