EMPLOYMENT LAW OBJECTIVE ASSESSMENT WGU FINAL EXAM
PAPER 2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔In the scope of employment context, which of the following is an example of frolic
and detour? - ✔✔
✔✔independent contractor - ✔✔One who works for, and receives payment from, an
employer but whose working conditions and methods are not controlled by the
employer. An independent contractor is not an employee but may be an agent.
✔✔common law agency test - ✔✔a worker is an employee if the emplyoer maintains the
right to control the method of work performed
✔✔economic realities test - ✔✔the degree of control exerted by the alleged employer
over the worker;
the worker's opportunity for profit or loss;
the worker's investment in the business;
the permanence of the working relationship;
the degree of skill required to perform the work; and
the extent to which the work is an integral part of the alleged employer's business.
✔✔IRS 20-FACTOR - ✔✔Instructions. Who controls when, where, and how work is to
be done?
Training. How much training does the employer give?
Integration. How closely are the employer's business processes linked to a worker's
performance?
Services rendered personally. How much right of substitution to allow others to do the
work does a worker have?
Hiring assistants. Does the worker control who is hired as an assistant?
Continuing relationship. How long and how often has the worker provided services?
Set hours of work. Does the employer set specific and inflexible work hours?
Full time required. Is the worker expected to devote all of his or her resources and time
to one employer on a full-time basis?
Work done on premises. Does the worker have his or her own place of business?
Order or sequence set. Does the employer set the order or sequence in which services
must be performed?
Reports. Does the employer require submission of regular reports?
Payment method. Is the worker paid by the hour or by the job?
Expenses. Does the worker cover his or her own overhead expenses?
Tools and materials. Does the employer furnish tools and equipment?
Investment. What is the level of worker investment in the means of doing the work?
Profit or loss. Does the worker bear the risk of loss in the arrangement?
Works for more than one person at a time. Does the worker work for more than one
employer at a time?
Services available to general public. Does the worker offer his or her services to the
general public?
, Right to fire. Is termination dictated by a contract or does the employer hold a right to
fire?
Right to quit. May the worker quit without incurring any liability?
✔✔Generally, partners, directors, and major shareholders are not employees. - ✔✔True
✔✔integrated enterprise - ✔✔the operations of two or more employers are considered
so intertwined that they can be considered a single employer for purposes of both
federal statutory coverage and liability
✔✔factors considered for integrated enterprise - ✔✔The degree of interrelation between
operations, such as sharing management services, payroll, and office space.
The degree to which the entities share management, as in having a common slate of
managers, officers, and directors.
The degree of common control of labor relations, as in human resources administration
or personnel policy development.
The level of shared ownership.
✔✔joint employer - ✔✔two or more persons or businesses entities which exercise joint
control over a group of employees
✔✔covered employment agency - ✔✔An agency that regularly procures employees for
at least one covered employer; subject to employment law regulation.
✔✔Which of the following is not a qualification to fall under federal employment law
statutes?
a.An entity's membership exceeds a certain number
b. An entity maintains a hiring hall which procures employees for at least one covered
employer
c. An entity is not engaged in an industry-affecting commerce
d. An entity represents the employees of an employer - ✔✔An entity is not engaged in
an industry-affecting commerce
✔✔employment at will - ✔✔A common law doctrine under which either party may
terminate an employment relationship at any time for any reason, unless a contract
specifies otherwise.
✔✔public-policy exception - ✔✔A rule of exception to the employment at-will doctrine
that states that an employer cannot terminate an employee for reasons that violate
public policy.
✔✔implied contract - ✔✔A legally binding agreement which is created, not through
formal contract negotiation and documentation, but by the actions of the employer and
the employee.
PAPER 2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔In the scope of employment context, which of the following is an example of frolic
and detour? - ✔✔
✔✔independent contractor - ✔✔One who works for, and receives payment from, an
employer but whose working conditions and methods are not controlled by the
employer. An independent contractor is not an employee but may be an agent.
✔✔common law agency test - ✔✔a worker is an employee if the emplyoer maintains the
right to control the method of work performed
✔✔economic realities test - ✔✔the degree of control exerted by the alleged employer
over the worker;
the worker's opportunity for profit or loss;
the worker's investment in the business;
the permanence of the working relationship;
the degree of skill required to perform the work; and
the extent to which the work is an integral part of the alleged employer's business.
✔✔IRS 20-FACTOR - ✔✔Instructions. Who controls when, where, and how work is to
be done?
Training. How much training does the employer give?
Integration. How closely are the employer's business processes linked to a worker's
performance?
Services rendered personally. How much right of substitution to allow others to do the
work does a worker have?
Hiring assistants. Does the worker control who is hired as an assistant?
Continuing relationship. How long and how often has the worker provided services?
Set hours of work. Does the employer set specific and inflexible work hours?
Full time required. Is the worker expected to devote all of his or her resources and time
to one employer on a full-time basis?
Work done on premises. Does the worker have his or her own place of business?
Order or sequence set. Does the employer set the order or sequence in which services
must be performed?
Reports. Does the employer require submission of regular reports?
Payment method. Is the worker paid by the hour or by the job?
Expenses. Does the worker cover his or her own overhead expenses?
Tools and materials. Does the employer furnish tools and equipment?
Investment. What is the level of worker investment in the means of doing the work?
Profit or loss. Does the worker bear the risk of loss in the arrangement?
Works for more than one person at a time. Does the worker work for more than one
employer at a time?
Services available to general public. Does the worker offer his or her services to the
general public?
, Right to fire. Is termination dictated by a contract or does the employer hold a right to
fire?
Right to quit. May the worker quit without incurring any liability?
✔✔Generally, partners, directors, and major shareholders are not employees. - ✔✔True
✔✔integrated enterprise - ✔✔the operations of two or more employers are considered
so intertwined that they can be considered a single employer for purposes of both
federal statutory coverage and liability
✔✔factors considered for integrated enterprise - ✔✔The degree of interrelation between
operations, such as sharing management services, payroll, and office space.
The degree to which the entities share management, as in having a common slate of
managers, officers, and directors.
The degree of common control of labor relations, as in human resources administration
or personnel policy development.
The level of shared ownership.
✔✔joint employer - ✔✔two or more persons or businesses entities which exercise joint
control over a group of employees
✔✔covered employment agency - ✔✔An agency that regularly procures employees for
at least one covered employer; subject to employment law regulation.
✔✔Which of the following is not a qualification to fall under federal employment law
statutes?
a.An entity's membership exceeds a certain number
b. An entity maintains a hiring hall which procures employees for at least one covered
employer
c. An entity is not engaged in an industry-affecting commerce
d. An entity represents the employees of an employer - ✔✔An entity is not engaged in
an industry-affecting commerce
✔✔employment at will - ✔✔A common law doctrine under which either party may
terminate an employment relationship at any time for any reason, unless a contract
specifies otherwise.
✔✔public-policy exception - ✔✔A rule of exception to the employment at-will doctrine
that states that an employer cannot terminate an employee for reasons that violate
public policy.
✔✔implied contract - ✔✔A legally binding agreement which is created, not through
formal contract negotiation and documentation, but by the actions of the employer and
the employee.
