EmploymentQuestion 919 of 1605

An employee's wages are garnished for the first time due to a single judgment. May the employer fire the employee simply because of that one garnishment?

a.No, but the employer may cut the employee's pay to minimum wage
b.Yes, garnishment is always grounds for termination
c.No, an employer generally may not discharge an employee because wages are garnished for one judgment
d.Yes, but only if the debt exceeds $10,000

Explanation

Federal law (Consumer Credit Protection Act) and California protections prohibit an employer from discharging an employee because earnings are subject to garnishment for any one indebtedness. An employee cannot be fired over a single garnishment. (Protection can be lost if there are garnishments for multiple separate debts, but a single judgment does not justify termination, and the employer cannot retaliate by cutting pay.)

Law Reference: Labor Code §2929; wage garnishment protections

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