PHRca CA Employment and Staffing 5 — Questions and Answers
Question 1: Under California law, which of the following best describes the 'at-will' employment doctrine as it applies to hiring and termination?
- California does not recognize at-will employment
- Employment is at-will but cannot be terminated for reasons that violate public policy, statute, or implied contract (Correct answer)
- At-will applies only to employees with less than one year of service
- At-will employment means an employer can terminate for any reason including protected class status
Correct answer: Employment is at-will but cannot be terminated for reasons that violate public policy, statute, or implied contract
California recognizes at-will employment but has created many exceptions, including terminations that violate FEHA, public policy (Tameny claims), or an implied contract created by employer representations.
Question 2: A California employer wants to conduct a credit check on a job applicant. Under the Investigative Consumer Reporting Agencies Act, which position is NOT exempt from California's restrictions on credit checks?
- Managerial position
- Position regularly handling cash exceeding $10,000
- Customer service representative with no financial responsibilities (Correct answer)
- Position requiring access to confidential employer information
Correct answer: Customer service representative with no financial responsibilities
California Labor Code Section 1024.5 restricts credit checks to specific positions; a customer service rep with no financial duties does not qualify for any exemption.
Question 3: Which California statute requires employers to provide meal and rest periods and, if violated, creates a wage claim that could affect staffing decisions and shift scheduling?
- California Labor Code Section 226
- California Labor Code Section 512 (Correct answer)
- California Business and Professions Code 17200
- California Labor Code Section 1194
Correct answer: California Labor Code Section 512
Labor Code Section 512 requires a 30-minute unpaid meal period for shifts over five hours and a second meal period for shifts over ten hours, with premium pay owed if not provided.
Question 4: Under California's FEHA, which of the following is an employer's obligation when an applicant requests a reasonable accommodation during the hiring process?
- Provide the accommodation only if it costs less than $500
- Engage in a timely, good-faith interactive process to determine an effective accommodation (Correct answer)
- Deny the request until after a conditional offer is made
- Refer the applicant to the company's EAP for assessment
Correct answer: Engage in a timely, good-faith interactive process to determine an effective accommodation
FEHA requires employers to engage in an interactive process with applicants requesting accommodations for disabilities, even before an offer is extended.
Question 5: California's SB 973 requires private employers with 100 or more employees to submit pay data reports to the Civil Rights Department. What is the primary purpose of this reporting?
- To assess payroll tax compliance
- To identify and address patterns of pay inequity by race, ethnicity, and sex (Correct answer)
- To verify worker classification as employees versus contractors
- To monitor compliance with minimum wage laws
Correct answer: To identify and address patterns of pay inequity by race, ethnicity, and sex
SB 973 (now codified as Government Code Section 12999) requires employers to report pay and hours-worked data by job category, race, ethnicity, and sex to enable enforcement of equal pay laws.
Question 6: A California employer hires a worker through a temporary staffing agency. After 90 days, the employer offers the worker a permanent position. What is the employer's obligation regarding any fee charged by the staffing agency?
- The employer may charge the worker the placement fee as a condition of permanent hire
- The employer cannot charge the worker any placement fee at any time (Correct answer)
- The employer may charge a fee only if disclosed in writing at placement
- The fee arrangement is entirely determined by the staffing agency contract
Correct answer: The employer cannot charge the worker any placement fee at any time
California Labor Code Section 976 prohibits employers from passing placement or referral fees to workers under any circumstances.
Question 7: When a California employer discovers that a job applicant lied on their application about a prior felony conviction, but the employer had not yet conducted the background check at the point of hire, what is the legally safest course of action?
- Immediately terminate without any further process
- Conduct the individualized assessment required under the Fair Chance Act before making an adverse employment decision (Correct answer)
- Report the applicant to law enforcement for fraud
- Retroactively deny employment benefits but retain the employee
Correct answer: Conduct the individualized assessment required under the Fair Chance Act before making an adverse employment decision
Even when discovering a conviction after hire due to applicant misrepresentation, performing an individualized assessment before taking adverse action reduces legal exposure under the Fair Chance Act.
PHRca CA Employment and Staffing 5
Under California law, which of the following best describes the 'at-will' employment doctrine as it applies to hiring and termination?