BizSugar.com › Human Resources › Don\'t Get Stuck With Your Employee\'s Student Loan Debt

Did you know that some of your current or former employees may have outstanding student loans that you can be on the hook for?
Federal and state laws penalize employers that do not comply with wage-garnishment orders. That’s right. You can be sued for the amount of a loan that an employee owes. Interest and attorneys’ fees can also be added to the amount of the defaulted loan. And although it happens rarely, you may actually be found in contempt of court … and potentially put in jail.
You face this spectrum of risks if you’re a sole proprietor — that is, an unincorporated business owned and run by one individual.