PHRca Employee Relations and Lifecycle 4 — Questions and Answers
Question 1: California's WARN Act (Cal-WARN) differs from the federal WARN Act in that it applies to employers with as few as how many employees?
- 100 employees
- 75 employees (Correct answer)
- 50 employees
- 25 employees
Correct answer: 75 employees
Cal-WARN applies to employers with 75 or more employees, compared to the federal threshold of 100, making it broader in coverage.
Question 2: Under Cal-WARN, how much advance notice must be given before a mass layoff, relocation, or plant closure?
- 30 days
- 45 days
- 60 days (Correct answer)
- 90 days
Correct answer: 60 days
Cal-WARN requires 60 days advance written notice to affected employees, the EDD, local workforce investment board, and chief elected official of each city/county.
Question 3: An employer in California who fails to pay a separated employee's final wages on time may be liable for waiting time penalties equal to:
- The employee's daily wage for up to 15 days
- The employee's daily wage for up to 30 days (Correct answer)
- Double the unpaid wages
- A flat $1,000 penalty per violation
Correct answer: The employee's daily wage for up to 30 days
California Labor Code §203 provides that willful failure to pay final wages subjects the employer to continuing wages (penalty) equal to one day's pay for each day of delay, up to 30 days.
Question 4: California's 'ban the box' law (AB 1008) restricts when employers may ask about criminal history during the hiring process. When may employers first ask about convictions?
- On the initial job application
- After a conditional offer of employment has been made (Correct answer)
- During the first interview
- After a background check authorization is signed
Correct answer: After a conditional offer of employment has been made
AB 1008 prohibits inquiry into criminal history until after a conditional offer of employment, allowing candidates to be evaluated on qualifications first.
Question 5: When an employer in California decides to rescind a conditional offer due to a criminal conviction, what must happen before the offer is formally withdrawn?
- Immediate rescission is permitted with written notice
- A preliminary adverse action notice must be provided and the candidate given 5 business days to respond (Correct answer)
- The employer must obtain DFEH approval
- The employer must wait 30 days after the background report is received
Correct answer: A preliminary adverse action notice must be provided and the candidate given 5 business days to respond
Under AB 1008, employers must send a preliminary adverse action notice and allow the applicant at least 5 business days to respond before making a final decision.
Question 6: Which document is California employers required to provide to all employees at termination, regardless of the reason for separation?
- COBRA continuation notice only
- WARN Act notification
- Notice of Change in Relationship (UI pamphlet DE 2320) (Correct answer)
- Separation agreement
Correct answer: Notice of Change in Relationship (UI pamphlet DE 2320)
California employers must provide form DE 2320 (For Your Benefit) to all separated employees so they can understand their unemployment insurance rights.
Question 7: In California, a non-solicitation agreement that restricts a former employee from contacting former customers is generally:
- Enforceable if the restriction is for no more than 1 year
- Unenforceable under Business and Professions Code §16600 (Correct answer)
- Enforceable only if the employee received additional consideration
- Enforceable if it protects trade secrets
Correct answer: Unenforceable under Business and Professions Code §16600
California Business and Professions Code §16600 voids contracts that restrain anyone from engaging in a lawful profession, trade, or business, including non-solicitation agreements.
PHRca Employee Relations and Lifecycle 4
California's WARN Act (Cal-WARN) differs from the federal WARN Act in that it applies to employers with as few as how many employees?