PHRca – Professional in Human Resources–
California | Comprehensive Study Guide, Practice
Exam, Exam Questions & Answers, Exam Prep
Test Bank, California Employment Law, HR
Compliance, Employee & Labor Relations, Talent
Acquisition, Compensation & Benefits, Workplace
Investigations, Leave Administration, Detailed
Rationales, HR Certification Success
Question 1: Under California law, which of the following best defines the
standard for determining whether an individual is an employee rather than an
independent contractor following the adoption of Assembly Bill 5 (AB5)?
A. The primary factor is the individual's ability to set their own hours and work location.
B. The determination is based on the "economic realities" test, focusing on the
individual's investment in their own business.
C. The "ABC" test is used, where the hiring entity must prove the worker is free from
control, performs work outside the usual course of the business, and is independently
engaged in an established trade.
D. The classification is based solely on the written contract between the parties, which
designates the worker's status.
CORRECT ANSWER: C. The "ABC" test is used, where the hiring entity must
prove the worker is free from control, performs work outside the usual course
of the business, and is independently engaged in an established trade.
Rationale: AB5 codified the "ABC" test for employee classification, shifting the burden to
the hiring entity to prove all three prongs. Prong B is particularly stringent, requiring that
the worker performs work that is outside the usual course of the hiring entity's business.
This makes it much harder to classify workers as independent contractors in California
compared to the previous Borello test.
Question 2: Which of the following statements accurately reflects the
requirements for a valid meal period under California law for a non-exempt
employee working a standard 8-hour shift?
A. The employee must be provided with a 30-minute uninterrupted meal period no later
than the end of the 6th hour of work.
B. The meal period can be waived by mutual consent if the employee works no more
than 8 hours.
C. The employer must ensure the employee takes the meal period, but the employee is
free to work through it if they choose.
D. The meal period must be a paid 30-minute break, counted as hours worked.
,CORRECT ANSWER: A. The employee must be provided with a 30-minute
uninterrupted meal period no later than the end of the 6th hour of work.
Rationale: California law requires that a 30-minute, unpaid meal period be provided
before the end of the fifth hour of work (no later than the start of the 6th hour). The
employer must provide the break and cannot impede the employee from taking it, but
the employee must be relieved of all duty to qualify as an unpaid break. Waivers are only
permitted for shifts up to 6 hours.
Question 3: In California, what is the primary distinction between "wages" and
"expense reimbursements" under Labor Code Section 2802?
A. Wages are subject to income tax withholding, while expense reimbursements are not
reportable to the IRS.
B. Wages are compensation for labor performed, while expense reimbursements are
repayment for necessary business expenditures incurred by the employee.
C. Wages must be paid at least monthly, while expense reimbursements are paid only
upon termination.
D. There is no legal distinction; both are treated identically for wage and hour purposes.
CORRECT ANSWER: B. Wages are compensation for labor performed, while
expense reimbursements are repayment for necessary business expenditures
incurred by the employee.
Rationale: Labor Code Section 2802 requires employers to indemnify employees for all
necessary expenditures incurred in direct consequence of the discharge of their duties.
This is a reimbursement for costs, not compensation for time or labor, and is not
considered wages for the purpose of calculating overtime or minimum wage, though it is
still a mandatory payment.
Question 4: Which of the following is a lawful deduction from an employee's
final paycheck in California without a prior written authorization from the
employee?
A. A deduction for a uniform that the employee failed to return.
B. A deduction for cash register shortages that occurred on the employee's shift.
C. A deduction for the employee's share of health insurance premiums for the final pay
period.
D. A deduction to recover an overpayment of wages due to a payroll error.
CORRECT ANSWER: C. A deduction for the employee's share of health
insurance premiums for the final pay period.
Rationale: California law is highly restrictive on wage deductions. Employers cannot
deduct for losses (shortages, breakage) or unreturned property without a specific written
agreement. However, deductions for health insurance premiums are generally permitted
,as a condition of employment or benefit plan, provided they are not a "kickback" to the
employer and do not reduce wages below minimum wage.
Question 5: Under the California Fair Employment and Housing Act (FEHA),
which of the following is NOT a protected characteristic?
A. Marital status.
B. Gender identity.
C. Medical condition.
D. Political affiliation.
CORRECT ANSWER: D. Political affiliation.
Rationale: FEHA protects a wide range of characteristics including race, religion, sex,
gender identity, sexual orientation, marital status, medical condition, and genetic
information. However, political affiliation is not a protected class under FEHA (except in
very specific contexts like state civil service whistleblower protections, but not for
general employment discrimination).
Question 6: An employer in California is subject to a federal EEO-1 report
requirement. Under California law, what is the equivalent state reporting
requirement that employers must also comply with?
A. California Pay Data Report (SB 973).
B. California Equal Pay Dashboard.
C. CA-1 Employment Report.
D. California Workforce Utilization Report.
CORRECT ANSWER: A. California Pay Data Report (SB 973).
Rationale: SB 973 requires private employers with 100 or more employees (and at least
one in CA) to submit an annual pay data report to the California Civil Rights Department
(CRD). This report details pay and hours worked by race, ethnicity, and sex across
specific job categories, making it similar to but distinct from the federal EEO-1.
Question 7: Which of the following describes the "WARN Act" requirements
specific to California (Cal-WARN) compared to the federal WARN Act?
A. Cal-WARN only applies to mass layoffs of 100 or more employees, while federal
applies to 50.
B. Cal-WARN requires 90 days' notice, while federal requires only 60 days.
C. Cal-WARN requires 60 days' advance notice but has a lower threshold for triggering
notice (50 employees) than the federal act.
D. Cal-WARN does not require notice for a relocation, only for a plant closure.
, CORRECT ANSWER: C. Cal-WARN requires 60 days' advance notice but has a
lower threshold for triggering notice (50 employees) than the federal act.
Rationale: California WARN (Cal-WARN) requires 60 days' notice for a mass layoff,
relocation, or termination affecting 50 or more employees within a 30-day period. The
federal WARN Act generally triggers at 500 employees or 100 employees if they
constitute one-third of the workforce. Cal-WARN is thus more protective of employees
with a lower threshold.
Question 8: In the context of California wage and hour law, what is the "Day of
Rest" requirement?
A. Employees must receive one day off per workweek, but they can waive this right in
writing.
B. Employees must receive one day off per workweek, and this right cannot be waived.
C. Employees must receive two consecutive days off per month.
D. Employees are entitled to a rest break for every 2 hours worked, which is considered
a "day of rest."
CORRECT ANSWER: A. Employees must receive one day off per workweek, but
they can waive this right in writing.
Rationale: Labor Code Section 551 mandates one day's rest in seven. However,
employees can voluntarily waive this right if they work no more than 6 consecutive days
in a workweek and the total hours do not exceed 30 hours, or 6 hours in a day in the
baking industry. Employers cannot force an employee to work seven days straight.
Question 9: Which of the following is true regarding the statute of limitations
for filing a claim for unpaid wages with the California Labor Commissioner?
A. The statute of limitations is 1 year from the date the wages were due.
B. The statute of limitations is 3 years from the date the wages were due.
C. The statute of limitations is 4 years from the date the wages were due.
D. There is no statute of limitations for wage claims.
CORRECT ANSWER: B. The statute of limitations is 3 years from the date the
wages were due.
Rationale: Under California law, the statute of limitations for filing a claim with the Labor
Commissioner for unpaid wages (including overtime) is 3 years from the date the wages
were due, per the California Code of Civil Procedure. For a civil lawsuit, it can be
extended to 4 years for written contracts, but the administrative claim limit is 3 years.
California | Comprehensive Study Guide, Practice
Exam, Exam Questions & Answers, Exam Prep
Test Bank, California Employment Law, HR
Compliance, Employee & Labor Relations, Talent
Acquisition, Compensation & Benefits, Workplace
Investigations, Leave Administration, Detailed
Rationales, HR Certification Success
Question 1: Under California law, which of the following best defines the
standard for determining whether an individual is an employee rather than an
independent contractor following the adoption of Assembly Bill 5 (AB5)?
A. The primary factor is the individual's ability to set their own hours and work location.
B. The determination is based on the "economic realities" test, focusing on the
individual's investment in their own business.
C. The "ABC" test is used, where the hiring entity must prove the worker is free from
control, performs work outside the usual course of the business, and is independently
engaged in an established trade.
D. The classification is based solely on the written contract between the parties, which
designates the worker's status.
CORRECT ANSWER: C. The "ABC" test is used, where the hiring entity must
prove the worker is free from control, performs work outside the usual course
of the business, and is independently engaged in an established trade.
Rationale: AB5 codified the "ABC" test for employee classification, shifting the burden to
the hiring entity to prove all three prongs. Prong B is particularly stringent, requiring that
the worker performs work that is outside the usual course of the hiring entity's business.
This makes it much harder to classify workers as independent contractors in California
compared to the previous Borello test.
Question 2: Which of the following statements accurately reflects the
requirements for a valid meal period under California law for a non-exempt
employee working a standard 8-hour shift?
A. The employee must be provided with a 30-minute uninterrupted meal period no later
than the end of the 6th hour of work.
B. The meal period can be waived by mutual consent if the employee works no more
than 8 hours.
C. The employer must ensure the employee takes the meal period, but the employee is
free to work through it if they choose.
D. The meal period must be a paid 30-minute break, counted as hours worked.
,CORRECT ANSWER: A. The employee must be provided with a 30-minute
uninterrupted meal period no later than the end of the 6th hour of work.
Rationale: California law requires that a 30-minute, unpaid meal period be provided
before the end of the fifth hour of work (no later than the start of the 6th hour). The
employer must provide the break and cannot impede the employee from taking it, but
the employee must be relieved of all duty to qualify as an unpaid break. Waivers are only
permitted for shifts up to 6 hours.
Question 3: In California, what is the primary distinction between "wages" and
"expense reimbursements" under Labor Code Section 2802?
A. Wages are subject to income tax withholding, while expense reimbursements are not
reportable to the IRS.
B. Wages are compensation for labor performed, while expense reimbursements are
repayment for necessary business expenditures incurred by the employee.
C. Wages must be paid at least monthly, while expense reimbursements are paid only
upon termination.
D. There is no legal distinction; both are treated identically for wage and hour purposes.
CORRECT ANSWER: B. Wages are compensation for labor performed, while
expense reimbursements are repayment for necessary business expenditures
incurred by the employee.
Rationale: Labor Code Section 2802 requires employers to indemnify employees for all
necessary expenditures incurred in direct consequence of the discharge of their duties.
This is a reimbursement for costs, not compensation for time or labor, and is not
considered wages for the purpose of calculating overtime or minimum wage, though it is
still a mandatory payment.
Question 4: Which of the following is a lawful deduction from an employee's
final paycheck in California without a prior written authorization from the
employee?
A. A deduction for a uniform that the employee failed to return.
B. A deduction for cash register shortages that occurred on the employee's shift.
C. A deduction for the employee's share of health insurance premiums for the final pay
period.
D. A deduction to recover an overpayment of wages due to a payroll error.
CORRECT ANSWER: C. A deduction for the employee's share of health
insurance premiums for the final pay period.
Rationale: California law is highly restrictive on wage deductions. Employers cannot
deduct for losses (shortages, breakage) or unreturned property without a specific written
agreement. However, deductions for health insurance premiums are generally permitted
,as a condition of employment or benefit plan, provided they are not a "kickback" to the
employer and do not reduce wages below minimum wage.
Question 5: Under the California Fair Employment and Housing Act (FEHA),
which of the following is NOT a protected characteristic?
A. Marital status.
B. Gender identity.
C. Medical condition.
D. Political affiliation.
CORRECT ANSWER: D. Political affiliation.
Rationale: FEHA protects a wide range of characteristics including race, religion, sex,
gender identity, sexual orientation, marital status, medical condition, and genetic
information. However, political affiliation is not a protected class under FEHA (except in
very specific contexts like state civil service whistleblower protections, but not for
general employment discrimination).
Question 6: An employer in California is subject to a federal EEO-1 report
requirement. Under California law, what is the equivalent state reporting
requirement that employers must also comply with?
A. California Pay Data Report (SB 973).
B. California Equal Pay Dashboard.
C. CA-1 Employment Report.
D. California Workforce Utilization Report.
CORRECT ANSWER: A. California Pay Data Report (SB 973).
Rationale: SB 973 requires private employers with 100 or more employees (and at least
one in CA) to submit an annual pay data report to the California Civil Rights Department
(CRD). This report details pay and hours worked by race, ethnicity, and sex across
specific job categories, making it similar to but distinct from the federal EEO-1.
Question 7: Which of the following describes the "WARN Act" requirements
specific to California (Cal-WARN) compared to the federal WARN Act?
A. Cal-WARN only applies to mass layoffs of 100 or more employees, while federal
applies to 50.
B. Cal-WARN requires 90 days' notice, while federal requires only 60 days.
C. Cal-WARN requires 60 days' advance notice but has a lower threshold for triggering
notice (50 employees) than the federal act.
D. Cal-WARN does not require notice for a relocation, only for a plant closure.
, CORRECT ANSWER: C. Cal-WARN requires 60 days' advance notice but has a
lower threshold for triggering notice (50 employees) than the federal act.
Rationale: California WARN (Cal-WARN) requires 60 days' notice for a mass layoff,
relocation, or termination affecting 50 or more employees within a 30-day period. The
federal WARN Act generally triggers at 500 employees or 100 employees if they
constitute one-third of the workforce. Cal-WARN is thus more protective of employees
with a lower threshold.
Question 8: In the context of California wage and hour law, what is the "Day of
Rest" requirement?
A. Employees must receive one day off per workweek, but they can waive this right in
writing.
B. Employees must receive one day off per workweek, and this right cannot be waived.
C. Employees must receive two consecutive days off per month.
D. Employees are entitled to a rest break for every 2 hours worked, which is considered
a "day of rest."
CORRECT ANSWER: A. Employees must receive one day off per workweek, but
they can waive this right in writing.
Rationale: Labor Code Section 551 mandates one day's rest in seven. However,
employees can voluntarily waive this right if they work no more than 6 consecutive days
in a workweek and the total hours do not exceed 30 hours, or 6 hours in a day in the
baking industry. Employers cannot force an employee to work seven days straight.
Question 9: Which of the following is true regarding the statute of limitations
for filing a claim for unpaid wages with the California Labor Commissioner?
A. The statute of limitations is 1 year from the date the wages were due.
B. The statute of limitations is 3 years from the date the wages were due.
C. The statute of limitations is 4 years from the date the wages were due.
D. There is no statute of limitations for wage claims.
CORRECT ANSWER: B. The statute of limitations is 3 years from the date the
wages were due.
Rationale: Under California law, the statute of limitations for filing a claim with the Labor
Commissioner for unpaid wages (including overtime) is 3 years from the date the wages
were due, per the California Code of Civil Procedure. For a civil lawsuit, it can be
extended to 4 years for written contracts, but the administrative claim limit is 3 years.
