The order applies to stimulus payments received after May 4, 2020, and wage garnishments on judgments entered prior to May 4, 2020.
1/13/2021 16:00
Minnesota Gov. Tim Walz has issued a new executive order exempting COVID-stimulus payments from execution, including by garnishment and levy, and easing the state’s ban on garnishments to allow for wage garnishments on judgments entered before May 4, 2020.
Emergency Executive Order 21-02, in effect as of Jan. 7, 2021, amends E.O. 20-50 to expressly include COVID-19 stimulus payments received after May 4, 2020, in the statutory exemption from garnishments, levies, and executions, (except those related to domestic support obligations.)
The previous order, E.O. 20-50, referred only to “recovery rebates.”
Additionally, E.O. 20-21 now expressly permits new wage garnishments and levies under certain provisions of Minnesota law but only for judgments entered prior to May 4, 2020:
“Wage garnishments and levies of consumer debtors permitted by Minnesota Statutes 2020, Chapters 550, 551, and 571, are permitted for all judgments entered prior to May 4, 2020, and the salary and earnings of said consumer debtors are not exempt based upon receipt of a subsequent Recovery Rebate notwithstanding paragraph 1 or 2, except if the consumer debtor is a recipient of any of the public assistance programs enumerated under Minnesota Statutes 2020, section 550.37, subdivision 14 (which includes federal COVID stimulus payments to individuals, per Paragraph 1 of E.O. 20-50 as amended by E.O. 21-02).”
Again, the partial lift on Minnesota garnishments applies only to wage garnishments and levies related to judgments entered before May 4, 2020. It does not apply to bank garnishments.
In summary, under the amended executive order:
- COVID-19 stimulus payments remain exempt from garnishment, levy or execution.
- Wage garnishments for judgments entered before May 4, 2020, may proceed.
- Bank garnishments remain suspended (except for domestic support obligations.)