PHRca Employee Relations and Terminations 2 — Questions and Answers
Question 1: Under California law, when must a terminated employee receive their final paycheck?
- Within 72 hours of termination
- On the next regular payday
- Immediately at the time of termination (Correct answer)
- Within 30 days of termination
Correct answer: Immediately at the time of termination
California Labor Code Section 201 requires that wages of a discharged employee are due and payable immediately at the time of discharge.
Question 2: An employee resigns with 72 hours notice. Under California law, when must the employer provide the final paycheck?
- Immediately upon receiving the notice
- On the employee's last day of work
- Within 72 hours of the notice being given (Correct answer)
- On the next scheduled payday
Correct answer: Within 72 hours of the notice being given
California Labor Code Section 202 requires that when an employee gives at least 72 hours notice, wages are due on the last day of work; with less notice, within 72 hours.
Question 3: California's WARN Act differs from the federal WARN Act in that it applies to employers with:
- 100 or more full-time employees
- 75 or more employees
- 50 or more employees (Correct answer)
- 25 or more employees
Correct answer: 50 or more employees
California's WARN Act (Labor Code Section 1400) applies to employers with 75 or more full- or part-time employees, while the federal WARN Act threshold is 100 full-time employees.
Question 4: Under the California WARN Act, employers must provide advance notice of a mass layoff for at least:
- 30 days
- 45 days
- 60 days (Correct answer)
- 90 days
Correct answer: 60 days
California Labor Code Section 1401 requires 60 days advance written notice to employees, the EDD, and local workforce agencies before a mass layoff, relocation, or plant closing.
Question 5: Which of the following is a recognized exception to California's at-will employment doctrine?
- Employee requested a raise within the past 6 months
- Employer prefers to retain younger workers
- Termination violates an implied contract created by an employee handbook (Correct answer)
- Employee has been with the company fewer than 90 days
Correct answer: Termination violates an implied contract created by an employee handbook
California courts recognize that implied contracts created through employee handbooks, policies, or employer conduct can overcome the at-will presumption.
Question 6: A California employee is terminated shortly after filing a workers' compensation claim. This may constitute a violation of:
- Labor Code Section 6400
- Labor Code Section 132a (Correct answer)
- Labor Code Section 201
- Labor Code Section 1102.5
Correct answer: Labor Code Section 132a
California Labor Code Section 132a prohibits discrimination or retaliation against employees for filing a workers' compensation claim.
Question 7: Under California law, accrued but unused vacation or PTO at termination must be:
- Forfeited if stated in a written policy
- Paid out only if employment lasted more than one year
- Paid out as wages on the final paycheck (Correct answer)
- Rolled over to a severance agreement
Correct answer: Paid out as wages on the final paycheck
California treats accrued vacation as earned wages under Labor Code Section 227.3, so it must be paid out on termination regardless of any forfeiture policy.
PHRca Employee Relations and Terminations 2
Under California law, when must a terminated employee receive their final paycheck?