Contractor License Practice Exam

What does the Wage Garnishment Law prohibit?

1. Firing an employee with garnished wages

2. Reducing an employee's salary

3. Filing for bankruptcy

4. Freezing an employee's bank account

The correct answer is: Firing an employee with garnished wages

The Wage Garnishment Law is designed to protect employees from certain forms of adverse employment actions due to the garnishment of their wages. This law prohibits firing or retaliating against an employee solely because their wages have been garnished for any one debt. This protection is critical because it ensures that employees can maintain their jobs despite having their wages garnished, which often occurs due to unpaid debts or other financial obligations. In contrast, the other options do not accurately reflect the intent or protection offered by the Wage Garnishment Law. While reducing an employee's salary may be permissible in different contexts under certain circumstances, it is not directly addressed by this specific law. Filing for bankruptcy is a separate legal process and is also not restricted by the Wage Garnishment Law. Lastly, freezing an employee's bank account is an action that may be taken by creditors through a court-approved garnishment process, but is not prohibited by the Wage Garnishment Law itself. Therefore, the focus on the protection against termination due to wage garnishment is clear and highlights the law's intent to safeguard workers’ employment rights.