Florida Contractor Practice Exam

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Prepare for the Florida Contractor Exam with practice tests featuring multiple choice questions and answers. Enhance your knowledge to succeed in various categories of contractor licensing in Florida.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the maximum amount that can be garnished from an employee's wages according to the Consumer Credit Protection Act?

25% of weekly disposable earnings
The amount exceeding thirty times the minimum wage
The greater of A or B
The lesser of A or B

The correct answer is: The lesser of A or B

The correct answer is that the maximum amount that can be garnished from an employee's wages according to the Consumer Credit Protection Act is the lesser of 25% of their weekly disposable earnings or the amount exceeding thirty times the federal minimum wage. This means that the law protects employees from having too much of their income taken for garnishment. The rationale behind this is to ensure that employees retain a reasonable amount of their earnings for personal use, while also allowing creditors some recourse to collect debts. By establishing both a percentage-based guideline (25% of disposable earnings) and a fixed threshold based on minimum wage, the law seeks to balance the interests of both the debtor and the creditor. If the garnishment were allowed to be the greater of the two amounts, it might lead to significant financial hardship for the employee, as they could end up losing a larger portion of their income. Therefore, the choice of the lesser of the two amounts provides adequate protection for the employee while still allowing creditors to pursue debt collection.