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Failure to respond to a subpoena is punishable as contempt by either the court or agency issuing the subpoena. Punishment may include monetary sanctions (even imprisonment although extremely unlikely).
Fill out and file a Request to Quash the Subpoena. Give your reasons for your objections to the Subpoena and what it is asking for. You can object to having to attend the hearing or trial, and explain why. You can object to bringing some or all the documents that the other party requested in his or her Subpoena.
Object to the subpoena when appropriate. You may not have to provide all requested documents and/or you may not have to testify. Your attorney can help you understand your obligations and may be able to narrow the scope of the subpoena by negotiating with the party that issued the subpoena.
Usually it makes sense to notify the employee about the subpoena and see if the employee has any objections. If the employee does object and it is a party to the legal proceeding (such as a domestic matter), it will likely make sense to put the burden of opposing the subpoena on the employee and his/her lawyer.
Do not ignore the subpoena. For many subpoenas, if you do not make objections within 7 to 14 days of receipt of the subpoena, you forever waive the right to object to all or any portion of the subpoena. Therefore, when you receive a subpoena, get in touch with your attorney right away.