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Employment
326 questionsLabor Code §203 continues the employee's wages as a penalty for each day final wages go unpaid, to a maximum of 30 days: 12 days × $240 = $2,880. One day's wage treats the penalty as a flat fee rather than a daily one. The $7,200 figure applies the 30-day cap even though only 12 days ran. $2,640 counts eleven days, dropping the first day the wages were late.
Labor Code §203Labor Code §201.3(b)(1) requires a temporary services employer to pay its assigned employees weekly, with the prior calendar week's wages due on a regular designated payday, whatever the length of the assignment. (d) is the general rule for everyone else - §204's twice-monthly payday - and it is the tempting answer precisely because it is the default a payroll service applies. (b) is slower still. (a) holds the wages to the end of the assignment, which on a long job can be months and is the practice §201.3 was enacted to stop. Day-to-day and same-day assignments have their own faster rules in §201.3(b)(4) and (b)(5).
Labor Code §201.3(b)(1); §204Wage Order 16 §10 allows lodging to count toward the minimum wage only up to the maximum amounts the IWC fixes, and only under a voluntary written agreement signed by the employee. Full market rent cannot be charged against wages. Lodging credits are not banned outright in California. And nothing in the order limits the credit to lodging that happens to sit on the jobsite.
IWC Wage Order 16 §10 (meals and lodging)Labor Code §246(d) says accrued paid sick days carry over to the following year of employment. What an employer may cap is USE - 40 hours or five days a year, in the same subdivision - while §246(j) lets total accrual stop at 80 hours or 10 days. Neither cap destroys anything: hours above the annual use limit stay on the books, and the accrual ceiling merely pauses further accrual, so a January 1 reset to zero is not authorised. Sick leave is also not vacation: the statute does not require the balance to be cashed out at year-end, or paid at all on separation.
Labor Code §246(d); §246(j)Section 226 requires wage statements to show gross wages, total hours, deductions, net wages, pay period dates, employee name and only the last four digits of the SSN (or an employee ID), employer name and address, and applicable rates. Full Social Security numbers are NOT allowed.
Labor Code §226Labor Code §2775 (codifying Dynamex and AB-5) presumes employee status unless the hiring entity proves all three ABC prongs: (A) freedom from control, (B) work outside the usual course of the hiring entity's business, and (C) independent establishment in the same trade. A written 'independent contractor agreement' is NOT one of the ABC prongs — labels are explicitly disregarded; substance controls. The construction-subcontractor exception in §2781 still requires the sub to be licensed and meet additional criteria; without those, even a written agreement cannot create independent-contractor status.
Labor Code §2775 (AB-5)Labor Code §2781 sends a bona fide construction subcontract to the Borello test instead of the ABC test only where the sub is licensed by the CSLB, the agreement is in writing and states payment and scope, the sub holds the required business license or tax registration, maintains its own business location, is free to hire and fire and to contract with others, is customarily engaged in an independent business of the same nature, and assumes financial responsibility for errors through insurance, indemnity, bonds or warranties. (a), (b) and (c) are all plausible-sounding business-legitimacy proxies that appear nowhere in the section: there is no property-ownership test, no minimum time in business, and no head count - a one-person licensed sub can qualify while a ten-employee unlicensed crew cannot. Where no license is required, the separate §2776 business-to-business exemption applies instead.
Labor Code §2781(a)-(f); §2776 (general business-to-business exemption)Wage Order 16 §10(A) and Labor Code §512(a) require an unpaid, off-duty meal period of not less than 30 minutes once the work period passes five hours, and a second 30-minute meal period once it passes ten hours. The first may be waived by mutual consent only where the day's total work is not more than six hours; the second only where the first was not waived and the shift is not more than twelve. (d) and (a) are rest-period figures in meal-period clothing - 10 minutes per 4 hours is the rest rule, and neither 20 nor 15 minutes appears anywhere in California law. (c) is a paid hour, which some collective bargaining agreements do provide, but a compliant meal period is unpaid precisely because the employee is relieved of all duty.
IWC Wage Order 16-2001, §10(A); Labor Code §512(a)Labor Code §226.8(b) sets a civil penalty of $5,000 to $15,000 for each willful misclassification, and §226.8(c) raises it to $10,000 to $25,000 per violation where the Labor Commissioner or a court finds a pattern or practice. §226.8(d)(1) adds the distinctive remedy: the violator must post a notice of the violation prominently on its public website - or, with no website, in an area of the workplace accessible to all employees and the public - for one year. (a) and (d) understate the penalty by one to two orders of magnitude. (c) treats the back wages as the whole exposure, which misses that the penalty is additional to them. A CSLB licensee also faces discipline under B&P §7110.1.
Labor Code §226.8(b), (c), (d)(1); Business & Professions Code §7110.1Labor Code §226.2(a)(1) requires piece-rate employees to be compensated for rest and recovery periods and for other nonproductive time - time under the employer's control that the piece rate does not itself pay for, such as loading materials or attending a safety meeting - separately from and in addition to piece-rate earnings. Rest and recovery time is paid at the higher of the applicable minimum wage or the worker's average hourly rate for the week under §226.2(a)(3); other nonproductive time is paid at no less than minimum wage under §226.2(a)(4). (b) is the averaging belief the section was enacted to end. (c) invents a half-minimum-wage travel rate that no California provision allows. (d) attaches a doubling to meal periods, which are unpaid when compliant.
Labor Code §226.2(a)(1), (a)(3), (a)(4)Want these explained in order? CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
Labor Code §226.7(c) owes one additional hour of pay at the employee's regular rate of compensation for each workday a meal-period violation occurs, and a separate hour for each workday a rest or recovery period violation occurs - so two premium hours is the daily maximum, one per category, no matter how many individual breaks were missed. (d) reaches the same figure by the wrong route and would pay two hours for a meal violation alone. (a) treats a late or made-up break as a cure; it is not, and the premium is owed even though the employee eventually ate. (b) invents a shift-wide multiplier. Ferra held that regular rate of compensation includes nondiscretionary bonuses and other earnings, not just base hourly pay.
Labor Code §226.7(b), (c); Ferra v. Loews Hollywood Hotel, LLC (2021) 11 Cal.5th 858Wage Order 16 §11(A) requires a paid, duty-free rest period of net ten minutes for every four hours worked or major fraction thereof, scheduled insofar as practicable in the middle of each work period; Brinker read 'major fraction' as more than two hours into a new four-hour block. (d) gets the count of breaks roughly right for a long shift and both other features wrong: rest periods are paid, counted as hours worked, and not at the employer's discretion. (b) pushes the single break to the end of the shift, which defeats the mid-period rule. (c) is the belief that field work is exempt; Wage Order 16 exists precisely to cover it, and a denied rest period carries the §226.7 one-hour premium. Wage Order 16 §3 allows alternative arrangements only through a qualifying collective bargaining agreement.
IWC Wage Order 16-2001, §11(A), §3; Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004Labor Code §2750.5 makes holding the required contractor's license a prerequisite to independent-contractor status for any work for which a license is required, so an unlicensed worker is presumed an employee of the hiring entity for workers' compensation, wage-and-hour and payroll-tax purposes, whatever the parties signed. (a) is the license substitution error: a city business tax certificate is a municipal revenue document and satisfies nothing in §2750.5 - only a CSLB classification license does. (d) is the pre-1990 default that §2750.5 reversed. (c) reads the absence of a policy as an absence of coverage; the opposite follows, because the hiring contractor's own carrier picks up the injury and the contractor absorbs the exposure.
Labor Code §2750.5; Business & Professions Code §7000 et seq.California uses daily overtime under Labor Code §510. Hours worked beyond 8 in a single workday must be paid at 1.5 times the regular rate. Here the first 8 hours are straight time and hours 9 and 10 are time-and-a-half. Daily overtime applies regardless of the weekly total, which is why the '40-hour' answer is wrong. Double time does not start until after 12 hours in a day, so 2 hours of daily OT is only 1.5x, not 2x.
Labor Code §510Under Labor Code §510, hours worked beyond 12 in a single workday must be paid at double time (2x). Hours 9 through 12 are paid at 1.5x, and any hours after the 12th are paid at 2x. There is no 2.5x tier in California daily overtime, so hours 13 and 14 are paid at 2x the regular rate.
Labor Code §510Labor Code §510 gives California both daily and weekly overtime. No day passed 8 hours, so no daily overtime accrues, but 48 hours worked means 8 hours over the 40-hour weekly line, payable at 1.5x. (a) applies the double-time multiplier, which §510 reserves for hours past 12 in a day or past 8 on the seventh consecutive day. (c) is the common belief that California abolished weekly overtime once it adopted the daily rule; both rules operate. (d) counts the entire sixth day as overtime, which would be correct only if the sixth day were the seventh consecutive day of the workweek. An employer applies whichever rule pays more but may not pyramid the two on the same hours.
Labor Code §510Labor Code §510 provides special rules for the seventh consecutive day of work in a workweek. The first 8 hours on that day are paid at 1.5x, and any hours beyond 8 on that seventh day are paid at 2x. So the first 8 hours are time-and-a-half and the 9th hour jumps to double time.
Labor Code §510Labor Code §515(a) sets a two-part test: a monthly salary of at least twice the state minimum wage for full-time (40-hour) employment, and primary engagement in exempt executive, administrative, or professional duties. (a) gets the money right but the form wrong - an hourly worker is not salaried and cannot be exempt under §515 no matter what the rate is. (b) is the error of applying the federal salary threshold; California's is higher and is tied to its own minimum wage. (d) is the belief that putting someone on salary is itself the exemption, which is the single most common misclassification in construction office staff.
Labor Code §515(a)Under Labor Code §1197, the minimum wage set by the Industrial Welfare Commission is the minimum an employer may lawfully pay, and paying less is illegal. An employee cannot waive the right to minimum wage by agreement; Labor Code §1194 makes such agreements void and lets the worker recover the unpaid balance regardless of any 'agreement.' Method of payment (cash or check) is irrelevant to the violation.
Labor Code §1197When multiple minimum wage laws apply, the employer must pay the highest applicable rate that benefits the employee. Many California cities (for example, several with local wage ordinances) set minimums above the state figure, and state law does not preempt those higher local rates. The federal minimum is the lowest floor and is superseded by both higher state and higher local rates.
Labor Code §1197.1Under Labor Code §512, an employee who works more than 5 hours must receive a 30-minute meal period, and that break must start before the end of the fifth hour of work. A 7-hour shift exceeds 5 hours, so one 30-minute meal period is required. A second meal period is required only when a shift exceeds 10 hours. The break is 30 minutes, not 60, and it is generally unpaid and off-duty.
Labor Code §512Labor Code §512 requires a first 30-minute meal period for shifts over 5 hours and a second 30-minute meal period for shifts over 10 hours. An 11-hour shift exceeds 10 hours, so two meal periods are required. A third meal period is not mandated; the statute tops out at two. The second meal period may be waived by mutual consent only if the shift is no more than 12 hours and the first meal period was not waived.
Labor Code §512The Wage Orders require a paid, duty-free 10-minute rest period per 4 hours worked 'or major fraction thereof,' which Brinker read as more than two hours into a new four-hour block. (a) doubles the duration; 20 minutes is the separate heat-illness recovery period, not the rest break. (c) makes the break unpaid and stretches the divisor to 8 - rest periods are counted as hours worked and are paid, which is what separates them from meal periods. (d) collapses rest into a single mid-shift break, which is the meal-period structure, not the rest structure.
IWC Wage Order 16, §11; Brinker v. Superior Court (2012) 53 Cal.4th 1004Labor Code §226.7(c) fixes the remedy at one additional hour of pay at the employee's regular rate of compensation for each workday a compliant meal period was not provided. (a) pays the premium at minimum wage; the statute ties it to the employee's own rate, which for a journeyman is far higher. (b) treats a late meal as a cure - it is not; a meal period pushed past the fifth hour is itself a violation. (d) doubles the premium. One meal violation and one rest violation in the same day can each carry their own hour, for a maximum of two premium hours per day, but a single meal violation carries one.
Labor Code §226.7(c)Under Labor Code §201, when an employer discharges an employee, all earned and unpaid wages are due and payable immediately at the time of termination. This includes accrued, unused vacation, which California treats as earned wages. The 72-hour rule applies to employees who quit without notice, not to discharges.
Labor Code §201Under Labor Code §202, an employee who quits without at least 72 hours' notice is entitled to final wages within 72 hours of the last day worked. If the employee gives at least 72 hours' notice, the wages are due on the final day of work. The 'immediate' rule applies to terminations under §201, not voluntary quits without notice.
Labor Code §202Labor Code §203 continues the discharged employee's wages as a penalty at the same daily rate until the final wages are paid, capped at 30 calendar days. (a) borrows a treble-damages multiplier from other statutes; §203 is a time-based penalty, not a multiple of the debt. (c) invents a flat sum, so a $600-a-day superintendent and a $150-a-day laborer would recover the same amount - the opposite of how §203 works. (d) substitutes the one-hour figure from the §226.7 meal-and-rest premium, a different remedy for a different violation. The penalty runs only where the failure to pay was willful.
Labor Code §203(a)Labor Code §226 lists nine categories required on itemized wage statements, including gross wages, total hours (for non-exempt workers), all deductions, net wages, pay period dates, the employee's name and an ID number or last four SSN digits, the employer's name and address, and all hourly rates with hours at each. It does not require the employee's home address or vehicle information, so the last option is not a required item.
Labor Code §226Labor Code §226(a) requires an accurate itemized wage statement semimonthly or at the time of each payment of wages, furnished automatically as a detachable stub or an accurate electronic record. (a) confuses furnishing the statement with the separate §226(b)/(c) duty to produce payroll records for inspection within 21 days of a request. (b) confuses the wage statement with the annual federal W-2. (d) confuses it with the employer's quarterly DE 9/DE 9C payroll tax filing to EDD, which reports to the state, not to the employee.
Labor Code §226(a)Labor Code §226(a) requires employers to keep a copy of each itemized wage statement, or the information necessary to reconstruct it, for at least 3 years at the place of employment or a central location. Employees have the right to inspect or copy these records. The 3-year retention aligns with the general statute of limitations for wage claims.
Labor Code §226(a)Under Labor Code §226(c) and §1198.5, an employer must permit inspection or provide copies of an employee's payroll and personnel records within 21 calendar days of a written request. Failure to comply can subject the employer to a penalty and possibly a small-claims action. Employers may charge the actual cost of copying but cannot ignore or unreasonably delay the request.
Labor Code §226(c)Labor Code §2802(a) makes the employer indemnify the employee for all necessary expenditures incurred in direct consequence of the discharge of their duties - required specialty safety gear and a reasonable percentage of a personal cell phone bill used for work both qualify. (a) is the 'personal item' defense, which fails once the employer requires the item for the job. (b) is wrong in the other direction: a collective bargaining agreement cannot waive §2802, because Labor Code §2804 voids any contract waiving it. (d) splits a cost the statute assigns entirely to the employer.
Labor Code §2802(a)Labor Code §2775(b)(1) presumes employee status unless the hiring entity proves all three prongs: (A) freedom from the hirer's control and direction, (B) work outside the usual course of the hiring entity's business, and (C) customary engagement in an independently established trade of the same nature. (d) is prong A. (a) is a factor under the older Borello multi-factor test, which still governs some relationships but is not a prong of the ABC test. (b) and (c) are the paperwork fallacies: how the worker files taxes and what the parties call the arrangement do not decide status, which is why a signed contractor agreement is no defense. For construction subcontractors, §2781 supplies a separate route that turns partly on the sub holding its own contractor license.
Labor Code §2775(b)(1) (AB 5, recodified by AB 2257); Dynamex Operations West v. Superior Court (2018) 4 Cal.5th 903Prong B of the ABC test (Labor Code §2775) requires that the worker perform work outside the usual course of the hiring entity's business. For example, a plumbing company that hires an outside accountant may satisfy prong B because accounting is outside plumbing; but a plumbing company hiring a plumber to do plumbing work cannot satisfy prong B. Where the work is performed and how pay is structured are not part of prong B.
Labor Code §2775 (AB 5)Misclassifying employees as independent contractors exposes the contractor to EDD assessments for back payroll taxes and contributions, Labor Code liability for unpaid overtime and minimum wage, and civil penalties under §226.8 of $5,000 to $15,000 per willful violation. (a) understates it: CSLB discipline under B&P §7110 is possible but is not the main exposure, and it does not displace the tax and wage liability. (c) inverts the remedy - misclassification does not extinguish the workers' claims, it is the reason they have them. (d) is the 'it's my business, I choose' belief; classification is decided by the ABC test in §2775, not by the parties.
Labor Code §226.8; §2775Labor Code §226.8(b) sets a civil penalty of not less than $5,000 and not more than $15,000 for each willful misclassification violation. (b) is the §226.8(c) tier, which applies only where the Labor Commissioner or a court finds the employer engaged in a pattern or practice of misclassification - the right numbers attached to the wrong subdivision. (c) is a plausible lowball drawn from ordinary Labor Code penalty ranges. (d) reads the top of the range as a fixed amount; both tiers are ranges, and the penalty is assessed per violation, on top of the back wages and taxes owed.
Labor Code §226.8(b), (c)The Division of Labor Standards Enforcement, headed by the Labor Commissioner, hears wage claims administratively under Labor Code §98 - the 'Berman hearing' - at no cost to the worker and with no lawyer required. (a) is the licensing regulator; CSLB can discipline a license for failing to pay wages but cannot award the worker the money. (c) collects payroll taxes and pays unemployment and disability benefits; an unpaid worker who goes to EDD gets a tax investigation, not a wage award. (d) is Cal/OSHA, which enforces workplace safety, not payment.
Labor Code §§98, 98.1 (Berman hearing); DLSEA DLSE wage-claim hearing before a deputy labor commissioner is commonly called a 'Berman hearing,' named after the legislator who authored the enabling statute (Labor Code §98). It is an informal administrative proceeding to decide unpaid-wage disputes. A Skelly hearing involves public-employee discipline, and Pitchess and Marsden are criminal-procedure motions, none of which relate to wage claims.
DLSE Berman hearing procedureLabor Code §1194(a) lets an employee who prevails on a minimum wage or overtime claim recover the unpaid balance plus interest, reasonable attorney's fees, and costs of suit. The fee shift runs one way, which is what makes small wage claims worth bringing. (a) imports a punitive multiplier the section does not contain. (c) is the American rule, which would apply in an ordinary contract suit but is displaced here by §1194. (d) is the belief that the wages are the whole remedy - it would leave a worker owed $900 paying a lawyer several times that to collect it.
Labor Code §1194(a)A claim for unpaid wages or overtime founded on a statutory liability (such as the Labor Code) generally has a 3-year statute of limitations under Code of Civil Procedure §338. If the claim is also pursued as an unfair business practice, the reach can extend to 4 years, and a written-contract wage theory can be 4 years, but the baseline statutory period for overtime is 3 years.
Code of Civil Procedure §338; Labor CodeSince 2023-09-01, CCP §706.050 limits an ordinary-debt earnings withholding order to the lesser of 20% of the employee's weekly disposable earnings or 40% of the amount by which those earnings exceed 48 times the state minimum hourly wage (96 hours biweekly, 104 semimonthly, 208 monthly). (a) is the federal Consumer Credit Protection Act formula - 25% and 30 times the federal minimum wage - which California employers may not use, because the state formula protects more of the wage. (b) keeps the federal 25% with the new California multiplier, and (c) keeps California's 20% but reverts to the federal wage base. Child support withholding is governed separately and runs much higher.
Code of Civil Procedure §706.050 (Stats. 2022, ch. 849 (SB 1477), operative 2023-09-01)Labor Code §2929(b) forbids discharging an employee because wages have been garnished for the payment of one judgment, or because garnishment has merely been threatened, and voids any contract term giving less protection; the federal Consumer Credit Protection Act, 15 U.S.C. §1674(a), is to the same effect. (a) concedes the discharge rule but substitutes a pay cut, which is a retaliatory reduction in wages and no safer than firing. (b) is the pre-1970 common-law position. (d) invents a dollar threshold; the protection turns on the number of separate indebtednesses, not the size of the debt, and it is garnishments for multiple separate judgments that put the protection at risk.
Labor Code §2929(b); 15 U.S.C. §1674(a)Child support income withholding follows the federal Consumer Credit Protection Act ceilings at 15 U.S.C. §1673(b): 50% of disposable earnings if the employee supports another spouse or child, 60% if not, and an extra 5 points in either case when payments are more than 12 weeks in arrears. This employee supports no other family and is not in arrears, so the ceiling is 60%. (a) is the figure for an employee who does support another family. (c) is 60% plus the arrears add-on, which the facts exclude. (b) is the federal ordinary-debt cap, and California's own ordinary-debt cap under CCP §706.050 is lower still at 20% - child support is deliberately allowed to reach much further into the cheque.
15 U.S.C. §1673(b); Family Code §5230 et seq.California employers report every new or rehired employee to the EDD New Employee Registry within 20 days of the start-of-work date, on Form DE 34 or electronically through e-Services for Business. (d) is the federal floor many other states use, and it is what a multi-state payroll service will often default to - earlier than California requires, but not California's rule. (b) borrows the 30-day rhythm of monthly payroll reporting. (a) is simply the outer edge of what feels reasonable. The start-of-work date, not the hire date or the first payday, starts the clock.
Unemp. Ins. Code §1088.5; EDD Form DE 34The DE 34 (Report of New Employee(s)) is the EDD form used to satisfy California's new-hire reporting requirement. The W-4 and DE 4 are tax-withholding certificates that determine payroll withholding, and the I-9 verifies work authorization; none of those satisfy the separate new-hire reporting obligation to the EDD's New Employee Registry.
EDD Form DE 34Form I-9 exists to document that the employer examined acceptable documents and verified the new employee's identity and authorization to work in the United States, as 8 U.S.C. §1324a(b) requires of every U.S. employer. (a) is the job of the DE 34 new-hire report, which does feed child-support enforcement - a genuinely adjacent form completed at the same moment in onboarding. (b) is the federal W-4 and California DE 4. (d) happens through the employer's EDD payroll tax registration, not through any form the employee signs. All four documents cross the new hire's desk in the same week, which is why they are easy to confuse.
8 U.S.C. §1324a(b); Immigration Reform and Control Act; Form I-9The employee completes Section 1 no later than the first day of employment; the employer completes Section 2 by examining the documents by the end of the third business day after the employee begins work for pay. (a) is not merely early, it is unlawful - demanding work-authorization documents before an offer invites a citizenship-status discrimination claim under 8 U.S.C. §1324b. (b) borrows the 20-day deadline of the California DE 34 new-hire report. (d) borrows the 30-day rhythm of benefits enrollment. Three business days is a much shorter fuse than any of them, which is why I-9 Section 2 is the onboarding step most often missed on a fast-moving crew.
8 C.F.R. §274a.2(b)(1)(ii); 8 U.S.C. §1324a(b)E-Verify is a voluntary federal internet system that compares the data on a completed Form I-9 against Social Security Administration and Department of Homeland Security records. California does not require it: Labor Code §2814, added by AB 622, makes it unlawful for an employer to use E-Verify on an existing employee or an applicant who has not been offered a job, except where federal law or a federal funding condition compels it, with penalties up to $10,000 per violation. (a) confuses it with EDD e-Services for Business, which is the state payroll portal. (b) confuses it with a DIR or DOL payroll audit. (d) invents a licensing step; California licenses the contractor, not the foreman.
Labor Code §2814 (AB 622); 8 U.S.C. §1324a note (IIRIRA §403)In California, Unemployment Insurance (UI) tax is an employer-paid payroll tax; it is not withheld from employee wages. By contrast, State Disability Insurance (SDI) is withheld from the employee's pay, and personal income tax is withheld from wages. Social Security (FICA) is split between employer and employee. The Employment Training Tax (ETT) is also employer-paid.
EDD Unemployment Insurance CodeState Disability Insurance (SDI), which funds California's disability and paid family leave benefits, is deducted from the employee's wages. UI and ETT are employer-paid, and FUTA (Federal Unemployment Tax Act) is entirely an employer obligation. Knowing which taxes are employer-paid versus employee-withheld is essential for correct payroll administration.
California Unemployment Insurance Code