CA Employment and Staffing Flashcards

Under California's AB5, which test determines whether a worker is an independent contractor rather than an employee?

Answer: The ABC test

AB5 codified the ABC test from Dynamex, requiring that workers be free from control, perform work outside the company's usual business, and be engaged in an independently established trade.

California Labor Code Section 432.3 prohibits employers from doing which of the following during the hiring process?

Answer: Asking about an applicant's prior salary history

Section 432.3 bans employers from seeking or relying on an applicant's prior salary history when setting compensation, aiming to close pay equity gaps.

California's Fair Chance Act (AB 1008) requires employers with 5 or more employees to do what before conducting a background check on an applicant's criminal history?

Answer: Obtain written consent only after a conditional offer is made

Under AB 1008, employers must first make a conditional job offer before inquiring about or running a criminal background check.

Under the California WARN Act, an employer with 75 or more full- or part-time employees must provide how many days' advance notice before a mass layoff?

Answer: 60 days

California's WARN Act requires 60 days' advance written notice before a mass layoff, relocation, or plant closing, which is the same as the federal WARN Act threshold.

Which California law makes non-compete agreements unenforceable in employment contracts, with very limited exceptions?

Answer: California Business and Professions Code Section 16600

Business and Professions Code Section 16600 voids any contract that restrains a person from engaging in a lawful profession, trade, or business, making most non-competes unenforceable.

When a California employer uses a third-party background check company (CRA), which state law governs disclosure and authorization requirements in addition to the federal FCRA?

Answer: Investigative Consumer Reporting Agencies Act (ICRAA)

The ICRAA imposes additional disclosure and authorization requirements beyond FCRA, including requiring a separate written disclosure document and the right to receive a copy of the report.

California's Proposition 64 legalized recreational marijuana. How does this affect pre-employment drug testing?

Answer: Employers may still require pre-employment marijuana testing and refuse to hire based on positive results

As of 2024, AB 2188 prohibits employers from discriminating based on off-duty marijuana use detected by non-psychoactive metabolite tests, but pre-employment testing for active impairment remains permitted.