Employment requirements: CSLB Law & Business Practice Questions

Under California's ABC test, which condition must the hiring business prove for a worker to be an independent contractor?

Labor Code §2775 presumes a worker is an employee unless the hirer proves all three: (A) free from control, (B) work outside the usual course of the hirer's business, and (C) customarily engaged in an independent business of that kind. A signed agreement or pay method does not decide it.

How many of the three ABC-test conditions must be met for a worker to be treated as an independent contractor?

Section 2775(b)(1) requires the hiring entity to show that all three conditions are satisfied; failing any one makes the worker an employee.

A drywall installer with no contractor's license works for a licensed general contractor. How is the installer treated?

Labor Code §2750.5 makes holding a valid contractor's license a condition of independent-contractor status for licensed work, so the unlicensed installer is the contractor's employee.

What civil penalty range applies to willfully misclassifying a worker as an independent contractor?

Section 226.8(b) sets a civil penalty of $5,000 to $15,000 for each willful misclassification violation; higher penalties apply to a pattern or practice.

Under California law, overtime at 1.5 times the regular rate is owed for hours worked beyond what?

Labor Code §510 requires 1.5x pay after 8 hours in a workday, after 40 hours in a workweek, and for the first 8 hours on the seventh consecutive day of work.

When must an employer pay double time?

Section 510 requires double the regular rate for work over 12 hours in a day and for work over 8 hours on the seventh consecutive day in a workweek.

A laborer earning $30 an hour works 10 hours on Monday. What is the gross pay for that day?

8 hours x $30 = $240, plus 2 overtime hours x $45 (1.5 x $30) = $90, for $330.

A carpenter paid $28 an hour works 13 hours in one day (it is not the seventh day). What is the gross pay for that day?

8 regular hours x $28 = $224; 4 hours at 1.5x ($42) = $168; 1 hour over 12 at 2x ($56) = $56. Total $224 + $168 + $56 = $448.

An employee works 9 hours a day, Monday through Friday (45 hours), at $20 an hour. How many hours are paid at the overtime rate?

Each day has 1 hour over 8, for 5 daily overtime hours. Those hours are not counted again toward the 40-hour weekly total (only 40 straight-time hours were worked), so overtime is 5 hours.

An employee works a 7-hour shift. What meal period is required?

Labor Code §512 requires a 30-minute meal period for a work period of more than five hours. It may be waived by mutual consent only if the total day is no more than six hours.

When may an employer and employee agree to waive the first meal period?

Under §512(a) the first meal period can be waived by mutual consent only if the employee works no more than six hours that day.

An employee works an 11-hour day. How many 30-minute meal periods are required?

Section 512(a) requires a second meal period after 10 hours. It can be waived by mutual consent only if the total day is no more than 12 hours and the first meal was not waived.

Under the construction wage order, how much paid rest time must employees be allowed?

IWC Order 16 (construction) requires a net 10-minute paid rest period for each four hours worked or major fraction (more than two hours). No rest period is needed if the day is under 3.5 hours.

An employer does not provide a required meal period one day. What must it pay the employee?

Labor Code §226.7(c) requires one additional hour of pay at the regular rate for each workday a meal, rest or heat recovery period is not provided.

As of January 1, 2026, what is California's statewide minimum wage for most employers?

DIR lists $16.90 per hour effective January 1, 2026 (up from $16.50 in 2025). Some cities and industries require more, and the highest applicable rate controls.