According to the Consumer Credit Protection Act, what is the maximum amount that can be garnished from an employee's wages?

Under the Consumer Credit Protection Act, the regulations regarding wage garnishment are structured to protect employees from excessive loss of income due to legal action. The correct answer indicates that the garnished amount is the lesser of two calculations: a fixed percentage of weekly disposable earnings or a specific threshold based on minimum wage.

To understand this better, the first calculation refers to up to 25% of an employee's disposable earnings, which are the earnings left after mandatory deductions like taxes. This ensures that employees always retain a portion of their income to cover essential living expenses.

The second calculation establishes a threshold: the amount by which an employee’s disposable earnings exceed thirty times the federal minimum wage. This provision is designed to prevent garnishment from being applied to the most basic level of income necessary for someone's subsistence.

By stating that wage garnishment is capped at the lesser of these two amounts, the law seeks to balance the interests of creditors to recover funds owed while still ensuring that employees can maintain a minimum standard of living. Thus, the answer reflects the intention of the Consumer Credit Protection Act to protect employee rights effectively while allowing for some relief to creditors.