Exempt Income | NY CourtHelp (2024)

FAQs

Exempt Income | NY CourtHelp? ›

Salary That Can't be Taken To Pay Money Judgments

Under New York's Exempt Income Protection Act (“EIPA”), certain funds in deposit accounts are exempt from most restraining notices and levies. One exemption under the EIPA is for an amount deemed to be protected wages, with the amount of such exemption tied to the minimum wage.

In New York, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30 times the federal or state minimum wage (whichever is greater). If your disposable income is less than 30 times the minimum wage, it can't be garnished at all.

The following kinds of personal property are exempt from collection and cannot be seized by a Marshal: (1) household goods such as appliances, clothing, or furniture; (2) necessary medical equipment, like wheelchairs; (3) one each of a cell phone, radio, computer, and television; (4) personal items such as art or ...

In general, the answer is no, creditors and debt collectors cannot seize your Social Security benefits.

Exempt income is any income that can't be taxed. Government pensions and retirement plans such as IRAs are examples of exempt income, as are gifts and inheritances. You may also qualify for an exemption if you receive disability payments or alimony.

Employees who are exempt from the FLSA's minimum wage and overtime laws include: executive, administrative, and professional employees and some computer workers; outside salespeople such as those who do sales away from the employer's place of business, like a door-to-door salesperson.

What's your first name? Still, you have certain rights in the garnishment process. If you receive a notice of a wage garnishment order, you might be able to protect or exempt some or all of your wages by filing an exemption claim with the court. You can also stop most garnishments by filing for bankruptcy.

New York is one of the few states that protects your bank account by requiring the judgment creditor and the bank to take certain steps before your bank account can be levied or restrained.

If no exempt funds can be identified in the bank account, any amount over the $1,950 (as of 2022) that is present in a debtor's account can be frozen, including money in a savings account.

What assets are exempt from lawsuit in NY? ›

jewelry (up to $1,000); tools (up to $3,000); one vehicle (up to $4,000 in value; if disabled, up to $10,000) unless the debt is for a family obligation. $1,000 cash if no homestead exemption claimed; trust property of which you are beneficiary (if created by someone else);

Your Car Can Be Seized Even If You Own It Fully

If it is worth more than the automobile exemption, a judgment creditor can take the car and sell it.

There are federal laws to protect VA benefits. There are state laws that protect IRA benefits and independent retirement accounts. So, seniors' income is protected by various laws, and if they don't pay their debt, or if they're unable to pay their debt, even if they're sued, it can't be garnished or taken from them.

Some sources of income are considered protected in account garnishment, including: Social Security, and other government benefits or payments. Funds received for child support or alimony (spousal support) Workers' compensation payments.

Opening a Bank Account That No Creditor Can Touch. There are four ways to open a bank account that no creditor can touch: (1) use an exempt bank account, (2) establish a bank account in a state that prohibits garnishments, (3) open an offshore bank account, or (4) maintain a wage or government benefits account.

Exempt employees are usually salaried professionals who don't get overtime pay. Non-exempt employees are paid hourly, have mandatory paid breaks, and get overtime pay at a higher rate for any time they work beyond the standard 40-hour workweek.

The key difference between exempt and non-exempt employees is that non-exempt workers are entitled to certain protections under the Fair Labor Standards Act, a federal law that sets minimum wage and overtime requirements.

Because New York's salary threshold is greater than the federal FLSA threshold, New York employers must comply with the state threshold for administrative and executive exemptions. Additionally, the final rule adjusted the highly compensated employee (HCE) total annual compensation requirement.

An exempt employee must receive the full salary for any week in which they perform any work, regardless of the number of days or hours worked. What does “primary duty” mean? "Primary duty" has been interpreted to mean the principal, main, major, or most important duty that the employee performs.