COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 96-48

October 1, 1996

TO THE HEADS OF ALL STATE AGENCIES

Attention:Chief Administrative and Fiscal Officers, Business
Managers, and Payroll and Personnel Officers
Subject:Increase of Federal Minimum Wage and its Impact on CGS 52-361a

  1. AUTHORITY

    1. Public Law 104-188, signed into law on August 20, 1996, increases the minimum wage from $4.25 to $4.75 an hour effective October 1, 1996.

    2. Section 52-361a, Subsection (f) of the Connecticut General Statutes provides that:

      "(f) Amount subject to levy. The maximum part of the aggregate weekly earnings of an individual which may be subject under this section to levy or other withholding for payment of a judgement is the lesser of (1) twenty- five per cent of his disposable earnings for that week, or (2) the amount by which his disposable earnings for that week exceed forty times the higher of (A) the minimum hourly wage prescribed by Section 6(a)(1) of the Fair Labor Standards Act of 1938, USC Title 29, Section 206(a)(1), or (B) the full minimum fair wage established by subsection (j) of section 31-58, in effect at the time the earnings are payable."

    3. "Disposable earnings" is the balance remaining after the following deductions have been made from gross wages: FICA, federal income tax, normal retirement contributions, union dues or fees, group life insurance, health insurance, maintenance, and (if applicable) voluntary or court-ordered family or welfare support, federal tax levies, and/or state income tax deductions authorized pursuant to CGS Section 12-34b.

      All other deductions (savings bonds, deferred compensation, etc.) are optional and are not permissible in the calculation of disposable earnings.

      1. The federal minimum wage will be $4.75 per hour effective October 1, 1996.

      2. CGS 31-58(j) increases the minimum fair wage in Connecticut to $4.77 per hour effective October 1, 1996.

  2. COMPUTATION TO DETERMINE AGGREGATE DISPOSABLE EARNINGS
    SUBJECT TO GARNISHMENT:

    Subsection (f) of CGS Section 52-361a provides that the maximum part of the aggregate disposable earnings subject to garnishment may not exceed the lesser of:

    1. 25% of the employee's disposable earnings for the week.

    2. The amount by which his/her disposable earnings exceed forty (40) times the Connecticut state minimum wage; i.e., 40 times $4.77 per hour equals $190.80 per week ($381.60 bi-weekly).

    3. The amount by which his/her disposable earnings exceed forty (40) times $4.75 per hour equals $190.00 per week ($380.00 bi-weekly).

      EXAMPLE:

      BI-WEEKLY AMOUNTS
      Method AMethod BMethod C
      GROSS WAGES$ 726.00$ 726.00$ 726.00
      Less:Allowable Deductions217.67217.67217.67
      DISPOSABLE EARNINGS$ 508.33 $ 508.33$ 508.33
      EXCLUSIONS:
      Method A:
      75% of Disposable Earnings381.25
      Method B:
      80 times State Hourly
      Minimum ______$ 381.60
      Method C:
      80 times Federal Hourly
      Minimum ________ _______$ 380.00
      AGGREGATE DISPOSABLE
      EARNINGS SUBJECT TO
      GARNISHMENT
      $ 127.08$ 126.73$ 128.33

      NOTE:

      Since it is the lesser aggregate disposable earnings which are subject to garnishment, the following rules-of-thumb will apply for current rates:

      DISPOSABLE EARNINGS
      $ 508.80 or moreUse Method A
      $ 508.79 or lessUse Method B

      Method C, based on Federal minimum wage, is reflected for comparison purposes only and will not be applicable as long as the Federal minimum wage is less than the State minimum wage.

  3. GENERAL

    This Memorandum supersedes Comptroller's Memorandum No. 91- 22 dated April 11, 1991.

    Please direct questions to the Office of the State Comptroller as follows:

    Statutory Impact/Computations:

    Policy Evaluation and Review Division, 860-702-3440;

    Payroll Procedures:

    Payroll Services Division, 860-702-3452.

NANCY WYMAN
STATE COMPTROLLER

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