PHRca CA Employment and Staffing 2 — Questions and Answers
Question 1: Under California's AB5, which test determines whether a worker is an independent contractor rather than an employee?
- The economic reality test
- The ABC test (Correct answer)
- The IRS 20-factor test
- The common law control test
Correct 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.
Question 2: California Labor Code Section 432.3 prohibits employers from doing which of the following during the hiring process?
- Conducting criminal background checks
- Asking about an applicant's prior salary history (Correct answer)
- Requiring drug testing before a conditional offer
- Verifying education credentials
Correct 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.
Question 3: 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?
- Obtain written consent only after a conditional offer is made (Correct answer)
- Notify the applicant at the time the application is submitted
- Complete an individualized assessment before extending any offer
- Receive approval from the California Labor Commissioner
Correct 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.
Question 4: 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?
- 30 days
- 45 days
- 60 days (Correct answer)
- 90 days
Correct 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.
Question 5: Which California law makes non-compete agreements unenforceable in employment contracts, with very limited exceptions?
- California Business and Professions Code Section 16600 (Correct answer)
- California Labor Code Section 2870
- FEHA Section 12940
- California Civil Code Section 3426
Correct 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.
Question 6: 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?
- California Consumer Privacy Act (CCPA)
- Investigative Consumer Reporting Agencies Act (ICRAA) (Correct answer)
- California Information Practices Act
- California Online Privacy Protection Act
Correct 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.
Question 7: California's Proposition 64 legalized recreational marijuana. How does this affect pre-employment drug testing?
- Employers may not test for marijuana under any circumstances
- Employers may still require pre-employment marijuana testing and refuse to hire based on positive results (Correct answer)
- Employers must provide reasonable accommodation to off-duty marijuana users
- Testing is only permissible for safety-sensitive positions
Correct 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.
PHRca CA Employment and Staffing 2
Under California's AB5, which test determines whether a worker is an independent contractor rather than an employee?