PHRca Employee Relations and Lifecycle 5 — Questions and Answers
Question 1: Under AB 5 (California's worker classification law), the ABC test presumes a worker is an employee unless the hiring entity can prove all three parts of the test. Which of the following is part B of the ABC test?
- The worker is free from control and direction of the hiring entity
- The worker performs work outside the usual course of the hiring entity's business (Correct answer)
- The worker is customarily engaged in an independently established trade
- The worker has a separate business license
Correct answer: The worker performs work outside the usual course of the hiring entity's business
Part B of the ABC test requires that the worker performs work that is outside the usual course of the hiring entity's business, a critical distinction from federal classification tests.
Question 2: California's Cal/OSHA requires employers to establish and maintain an Injury and Illness Prevention Program (IIPP). Who is ultimately responsible for the IIPP?
- The highest-ranking safety officer
- The employer (Correct answer)
- Cal/OSHA directly supervises it
- Employees collectively
Correct answer: The employer
Cal/OSHA places ultimate responsibility for the IIPP on the employer, who must identify a responsible person but remains accountable for the program's effectiveness.
Question 3: A California employer with 5 or more employees is required to provide sexual harassment prevention training to non-supervisory employees within how long of their hire date?
- 30 days
- 6 months
- 90 days (Correct answer)
- 1 year
Correct answer: 90 days
SB 1343 requires non-supervisory employees to receive 1 hour of sexual harassment prevention training within 6 months of hire.
Question 4: Under California law, which of the following employee records must be retained for a minimum of 3 years?
- Job applications for positions that were not filled
- Payroll records including wages, hours, and working conditions (Correct answer)
- OSHA Form 300 logs
- Drug test results
Correct answer: Payroll records including wages, hours, and working conditions
California Labor Code §1174 requires payroll records showing hours worked and wages paid to be kept for at least 3 years.
Question 5: An employee handbook in California should expressly state the company's at-will employment policy but must also avoid language that could be interpreted as creating which type of contract?
- Union contract
- Implied contract of continued employment (Correct answer)
- Independent contractor agreement
- Non-compete covenant
Correct answer: Implied contract of continued employment
California courts have found implied contracts based on handbook language promising job security; handbooks should use clear at-will disclaimers to prevent this.
Question 6: California's mandatory arbitration law (AB 51) attempted to prohibit employers from requiring arbitration of FEHA and Labor Code claims as a condition of employment. What is the current legal status of AB 51?
- Fully in effect and enforceable
- Permanently enjoined and unenforceable due to federal court rulings under the FAA (Correct answer)
- Applies only to public sector employers
- Effective only for employers with 50 or more employees
Correct answer: Permanently enjoined and unenforceable due to federal court rulings under the FAA
Federal courts held that AB 51 is preempted by the Federal Arbitration Act (FAA), rendering it unenforceable; mandatory arbitration agreements remain valid in California.
Question 7: When an employee in California uses California Family Rights Act (CFRA) leave to care for a seriously ill parent, the employer may require the employee to substitute accrued paid family leave benefits. Who administers California's Paid Family Leave (PFL) wage replacement benefits?
- The employer's HR department
- California's Employment Development Department (EDD) (Correct answer)
- The California Department of Industrial Relations
- The U.S. Department of Labor
Correct answer: California's Employment Development Department (EDD)
California's Paid Family Leave program is a state-run insurance program administered by the EDD, funded through employee SDI payroll deductions.
PHRca Employee Relations and Lifecycle 5
Under AB 5 (California's worker classification law), the ABC test presumes a worker is an employee unless the hiring entity can prove all three parts of the test.
Which of the following is part B of the ABC test?