Can You Sue Your Employer for Dismissal Over Wage Garnishment?
Federal law requires employers to comply with a court’s wage garnishment order. The employer must withhold a portion of your earnings and turn those earnings over to the garnishing creditor until repayment of the debit in full or you leave the position. In certain situations, you have the right to file a wrongful termination suit if your employer dismisses you upon receiving a wage garnishment order from the court.
-
Wage Garnishment Laws
-
Title III of the Consumer Credit Protection Act prohibits employers from dismissing employees because of a wage garnishment requirement. Considered discrimination, doing so is illegal. Employers are not barred from dismissing an employee who receives two wage garnishment orders, however. Thus, if you lose your job because you are subject to a single wage garnishment, you have grounds for filing a wrongful termination lawsuit. If you were subject to more than one wage garnishment, you do not have grounds to sue your former employer.
"At Will" Employment
-
While you may have grounds for filing a wrongful termination lawsuit, you must prove to the court that your employer did not fire you for a legal reason. Most employers have at-will employment policies in place to protect them from frivolous and, in some cases, legitimate wrongful termination lawsuits. Every state but Montana permits employers to employ people at-will. This gives your employer the right to dismiss you from your job for any reason unless prohibited by state or federal laws, such as in discrimination. In the absence of a written document from your employer noting dismissal because of your pending wage garnishment, proving a wrongful termination case against your employer may pose a challenge. Speak to a licensed attorney in your area to determine whether you can litigate against your employer for wrongful termination.
-
Considerations
-
You do not have to lose your job to sue your employer for wrongful termination. If you were demoted or had your salary reduced because of your wage garnishment, you have grounds for filing a lawsuit. In addition, if your employer puts you in a position where conditions at your workplace are such that any reasonable individual would hand in his resignation, you can sue for wrongful termination even if you left your job voluntarily.
Statute of Limitations
-
Should you decide to sue, you must file your lawsuit within the specific period set for wrongful termination lawsuits in your state. After this statute of limitations passes, you lose the right to file a lawsuit for damages – even if you have a valid case. Consumers in California, for example, must file their wrongful termination lawsuits within one year of dismissal from their jobs.
Effects
-
If you successfully prove that your employer fired you illegally because of your wage garnishment, you can ask that the court require your employer to compensate you for lost wages, future wages you would have earned had you not been wrongfully terminated and your attorney’s fees. You can also request damages for emotional distress.
-
References
Resources
- Photo Credit Jupiterimages/BananaStock/Getty Images