Contractor License Practice Exam

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Prepare for the Contractor License Exam with comprehensive quizzes. Study with multiple choice questions, flashcards, and detailed explanations to ensure you're ready for success on exam day!

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What should employers do if their employee's pay is garnished for payment of a debt?

Ignore the garnishment
Fire the employee
Consult a lawyer
Do not fire the employee

The correct answer is: Do not fire the employee

When an employee's pay is garnished for payment of a debt, employers must adhere to specific legal obligations regarding the garnishment order. Understanding these obligations is crucial to ensure compliance with federal and state laws. By choosing not to fire the employee, employers are protecting themselves from legal repercussions. The law generally prohibits firing an employee solely because their wages are subject to garnishment. This protection is in place to prevent discrimination against employees facing financial difficulties and ensures that they retain their job despite the garnishment. Additionally, employers are required to follow the garnishment orders as instructed, ensuring that the appropriate amount is withheld from the employee's paycheck and forwarded to the creditor. Ignoring the garnishment could result in legal consequences, including fines or penalties for the employer. Consulting a lawyer can be beneficial in understanding the specific obligations and to navigate complex situations; however, keeping the employee on payroll is essential for compliance with employment laws governing wage garnishments.