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Employment
326 questionsLabor Code §510(a) pays 1.5x for hours over eight in a workday, so a 10-hour Monday earns two overtime hours at time and a half. The 'no overtime' answer applies the federal FLSA rule, which counts only hours over 40 in a week — California's daily line is the stricter one and it controls here. One hour would be right only if the daily threshold were nine. Double time does apply in California, but not until hours over 12 in a workday, and this employee stopped at 10.
Labor Code §510(a)Labor Code §510(a) pays work beyond eight hours in a workday at no less than 1.5× the regular rate, and work beyond twelve hours in the day at no less than twice the regular rate. Thirteen hours therefore splits three ways: 8 at straight time, hours 9 through 12 at 1.5×, and the thirteenth hour at 2×. Paying all 13 straight applies the federal approach, which counts only hours past 40 in a week and has no daily overtime. Running all five extra hours at 1.5× ignores the double-time trigger at twelve hours, and running all five at 2× starts double time four hours too early.
Labor Code §510(a)California requires overtime pay (1.5×) for all hours worked beyond 40 in a workweek. This applies regardless of whether daily overtime has also been triggered.
Labor Code §510Labor Code §510(a) pays one and one-half times the regular rate for the first eight hours worked on the seventh consecutive day of a workweek, and double time for hours beyond eight that day. Straight time ignores the seventh-day premium altogether. Double time from the first hour is the rule for hours beyond 12 in a single workday, not for the seventh day's first eight hours. And time-and-a-half all day drops the double-time step §510 adds after the eighth hour.
Labor Code §510(a)Employers must provide a 30-minute unpaid meal period no later than the end of an employee's fifth hour of work. The break can be waived by mutual agreement if the shift is 6 hours or less.
Labor Code §512California requires one paid 10-minute rest period for every four hours worked (or major fraction thereof). An 8-hour shift triggers two 10-minute paid rest breaks.
IWC Wage OrdersWhen an employee quits without at least 72-hour advance notice, the employer has 72 hours to provide the final paycheck. If the employee gave 72+ hours notice, pay is due on the last day of work.
Labor Code §202Labor Code §201(a) makes wages earned and unpaid due and payable immediately when the employer discharges an employee, and §208 fixes the place as the place of discharge. The 72-hour deadline belongs to §202, which covers an employee who quits without notice. The 24-hour rule, weekends and holidays excluded, is the narrow §201.7 exception for oil-drilling layoffs. The next regular payday is the ordinary §204 rule for wages during employment; it never governs a discharge.
Labor Code §201(a); §202; §201.7; §208California employers must report all new employees to the EDD within 20 days of their start date. This supports child support enforcement and fraud detection.
Unemployment Insurance Code §1088.5California uses the ABC test to decide worker classification (c). A worker is presumed an employee unless the hiring entity proves all three prongs: (A) free from control, (B) work outside the hiring entity's usual course of business, and (C) customarily engaged in an independently established trade. AB 5 first codified this at Labor Code §2750.3, but AB 2257 repealed that section in 2020 and recodified the test at §2775, with the construction-subcontractor route out of it at §2781. (a) licensing is a separate question under B&P §7000 et seq., (b) prevailing wage turns on Labor Code §1720 and §1771, and (d) permits are a building-code matter.
Labor Code §2775Want these explained in order? CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
Labor Code §1773 has the Director of the Department of Industrial Relations determine the general prevailing rate of per diem wages by craft and locality. The awarding public agency is the most tempting wrong answer because §1773.2 makes it obtain those rates from DIR and specify them in the call for bids - it publishes them but does not set them. Davis-Bacon rates are determined by the U.S. Department of Labor and govern federally funded work, not California's own prevailing wage law. DIR looks to collective bargaining agreements as evidence of the prevailing rate, but a local master agreement is not itself the determination.
Labor Code §1773; §1773.2Labor Code §226(a) lists what an itemized wage statement must show: gross wages earned, total hours worked, deductions, net wages, the inclusive dates of the pay period, applicable hourly rates, and the name and address of the legal entity that is the employer. Section 226(a)(7) is explicit that the statement carries only the last four digits of the social security number, or an employee identification number instead — which is why the full nine-digit number is the item that does not belong. The other three are required entries, not optional ones.
Labor Code §226(a), §226(a)(7)California prohibits employers from deducting ordinary business losses (breakage, shortages, faulty work) from employee wages. Employers bear the risk of business operations.
Labor Code §221Section 1771 requires the general prevailing rate of per diem wages on all public works, 'except for public works projects of one thousand dollars ($1,000) or less' (b). The exception is written at the line, so a contract of exactly $1,000 falls inside it and a contract of $1,000.01 does not. (a) $500 is not a figure in §1771. (c) $15,000 and (d) $25,000 are real numbers borrowed from a different rule: under §1771.5(a) an awarding body running a labor compliance program approved by the Director of Industrial Relations may choose not to require prevailing wage on alteration, demolition, repair or maintenance of $15,000 or less, or construction of $25,000 or less. The same pair separately governs DIR registration under §1771.1(n).
Labor Code §1771Labor Code §1725.5 requires a contractor to register with the Department of Industrial Relations, and §1771.1(a) makes an unregistered contractor ineligible to bid on or be listed in a bid for public work. The CSLB licence is separate and does not substitute for that registration. EDD handles payroll tax and unemployment accounts, not public-works registration, and no city or county registration takes the place of DIR's. Registration is not required for a public works project of $25,000 or less for construction, alteration, demolition, installation or repair work, or of $15,000 or less for maintenance work (§1771.1(n)).
Labor Code §1725.5; §1771.1(a), (n)Labor Code §6328 requires the Cal/OSHA safety and health poster where employees can see it, and it is one of a set: the minimum wage order, the paid sick leave notice, the workers' compensation carrier notice under §3550, the payday notice under §207 and the emergency contact notice all go up alongside it. Posting the Cal/OSHA poster by itself, or the workers' compensation notice by itself, each leaves the rest of that set unposted. Safety Data Sheets are a different duty: the hazard communication standard requires them to be accessible to employees, not posted on a wall.
Labor Code §6328; §3550; §207Labor Code §204 makes wages due twice during each calendar month on days designated in advance, and it treats a weekly, biweekly or semimonthly payroll as satisfying that rule when wages are paid within seven calendar days of the close of the payroll period - so twice a month, or every two weeks, is the floor for a construction crew. Paying weekly is lawful but more than §204 demands, so it is not the minimum the law sets. Once a month is lawful only for exempt executive, administrative and professional employees. And nothing confines a construction employer to a two-week cycle: a semimonthly payroll complies just as well.
Labor Code §204; §204(d)Wage Order 16 §9(A) makes the employer provide and maintain any uniform it requires, and Labor Code §2802(a) independently requires reimbursement of the cost, so the trigger is simply whether the employer requires the item. (c) is the real distinction stated backwards: the DLSE treats ordinary basic wardrobe of a generic color and design - plain blue jeans, a plain white shirt - as the worker's own expense, but that is because such clothing is not a uniform, not because street-wearability shifts the cost of one. (a) ignores §2802 altogether. (b) reaches the right result here by the wrong route, and would make the employer pay for clothing it never specified. Requiring a deposit or a payroll deduction for a uniform is an unlawful deduction under Labor Code §221.
IWC Wage Order 16-2001, §9(A); Labor Code §2802(a); DLSE Enforcement Policies §45.5Workers' compensation is a no-fault system. The employer's WC insurance pays all reasonable and necessary medical expenses for work-related injuries, regardless of who was at fault.
Labor Code §3600Labor Code §2810.5(a) requires every employer to give each nonexempt employee, at the time of hiring, a written notice - the Wage Theft Prevention Act notice - stating the rate or rates of pay and the basis, any allowances, the regular payday, the employer's name and addresses, and the workers' compensation carrier. What goes on the notice is the carrier's name and contact details, not the policy document itself. An employee handbook is not required by law at all, whatever an employer chooses to publish. And the Cal/OSHA 300 log records injuries for the year: its annual summary is posted from February 1 through April 30, not handed to new hires.
Labor Code §2810.5(a)Labor Code §227.3 treats vested vacation as wages, and Suastez holds it vests as it is earned, so on termination all unused vacation is payable at the employee's final rate. A written policy cannot declare it forfeited — that is the specific outcome §227.3 forbids. Carry-over is a legitimate accrual rule while employment continues, but it cannot survive the separation, which is when payment falls due. Paying at the older rate the time accrued at understates the wage: §227.3 fixes the final rate as the measure.
Labor Code §227.3; Suastez v. Plastic Dress-Up Co. (1982) 31 Cal.3d 774The penalty for a knowing and intentional violation of the wage statement requirements is $100 per employee per pay period, with a maximum of $4,000 per employee.
Labor Code §226(e)Status is decided by the ABC test in Labor Code §2775(b)(1) — with the separate construction-subcontractor rules of §2781 — not by what the parties called the arrangement, so a signed independent-contractor agreement settles nothing. A willful misclassification draws a civil penalty of $5,000 to $15,000 per violation under §226.8(b), rising to $10,000 to $25,000 where there is a pattern or practice under §226.8(c), on top of the back wages, unpaid overtime and payroll taxes. There is no free first violation, and under §226.8(d) the order goes to CSLB, which must begin disciplinary action within 30 days. The forum is a state claim or civil action, not federal court.
Labor Code §226.8(b), (c), (d); §2775(b)(1); §2781First 8 hours at $24.00 = $192.00; hours 9-11 (3 hours) at 1.5× = $36.00 × 3 = $108.00. Total = $192.00 + $108.00 = $300.00. Double time would only begin after 12 hours.
Labor Code §510Hours 1-8 at $30.00 = $240.00; hours 9-12 (4 hours) at 1.5× ($45.00) = $180.00; hours 13-14 (2 hours) at 2× ($60.00) = $120.00. Total = $240.00 + $180.00 + $120.00 = $540.00.
Labor Code §510No single day exceeded 8 hours, so no daily overtime applies. However, the week totaled 46 hours, and California requires 1.5× pay for all hours over 40 in a workweek — that is 6 hours of weekly overtime.
Labor Code §510Labor Code §511(a) allows a regularly scheduled alternative workweek of up to ten hours a day within a 40-hour week only where at least two-thirds of the affected employees in a readily identifiable work unit approve it by secret ballot, after the employer has disclosed the proposal in writing and held a meeting at least 14 days before the vote, with the results reported to the DIR. (c) captures the idea of employee consent but makes it individual; the schedule is adopted by a work unit, and one worker cannot opt in or out. (a) is the way these schedules actually get run in the field, and it is unlawful - an unratified 4/10 schedule owes daily overtime after eight hours for every day worked. (d) sends the question to the licensing board, which has no role in wage-hour scheduling.
Labor Code §511(a); 8 CCR §11160, §3(C) (Wage Order 16 alternative workweek)Labor Code §510(a) sets overtime as a multiple of the employee's REGULAR RATE — not less than 1.5× beyond eight hours in a workday, and not less than 2× beyond twelve. The regular rate is not the same as the base hourly wage: nondiscretionary bonuses, shift differentials and similar earnings are folded in, which is why paying 1.5× the bare base rate underpays. The minimum wage is a floor on pay, not the base for a premium the employee has earned at a higher rate. And no provision converts overtime into a flat dollar premium; the multiplier moves with what the employee actually earns.
Labor Code §510(a)A second 30-minute meal period is required when a shift exceeds 10 hours. A 12-hour shift triggers two meal periods — the first by the end of hour 5 and the second by the end of hour 10.
Labor Code §512Labor Code §226.7 requires one additional hour of pay at the employee's regular rate for each workday a compliant meal period was not provided, and a separate hour for a day of rest-period violations. Paying only the thirty minutes the break would have lasted treats the premium as make-up wages; it is a fixed one-hour premium regardless of how much of the break was lost. The $50 figure belongs to the wage-statement penalties in §226.3 and is payable to the state, not to the employee. And the premium is owed whether or not the employee was disciplined or even complained.
Labor Code §226.7; cf. §226.3For a work period of no more than 6 hours, the meal period may be waived by mutual consent of both the employer and the employee. The waiver should be voluntary, not coerced.
Labor Code §512The employer of the exposed employees provides both: 8 CCR §1524 requires an adequate supply of potable water in all places of employment, and 8 CCR §1526 requires toilets at construction jobsites - a minimum of one separate facility for each 20 employees or fraction thereof of each sex, with narrow exemptions for very small crews and for mobile crews with ready transportation. IWC Wage Order 16 §10(C) adds potable water, soap and single-use towels for hand washing. Employees cannot be left to supply their own, the project owner carries no such duty, and the general contractor's control of the site does not relieve each subcontractor of providing for its own crew.
8 CCR §1524; 8 CCR §1526; IWC Wage Order 16 §10(C)Augustus holds that a rest period requires the employer to relieve the employee of all duties and relinquish control over how the ten minutes are spent; §226.7 then prices a failure at one extra hour of pay. Staying reachable by phone and standing by at the work station are both on-duty time, which is why an on-call rest period does not count as one. Clocking out contradicts the rule that the ten minutes are paid as hours worked. Wage Order 16 does let a construction employer designate where the break is taken — even the immediate work area — so the test is freedom from duty, not freedom to leave the site.
Labor Code §226.7; Augustus v. ABM Security Services (2016) 2 Cal.5th 257; IWC Wage Order 16 §11When an employee quits with at least 72 hours of advance notice, final wages are due on the last day of work. The 72-hour grace period only applies when the employee quits without giving such notice.
Labor Code §202The waiting-time penalty under §203 equals the employee's daily wage for each day final pay is late, continuing until paid, but capped at 30 days. Here that maximum would be $200 × 30 = $6,000.
Labor Code §203The §203 waiting-time penalty is the daily wage multiplied by the number of days the payment is late: $160 × 8 = $1,280. The penalty would continue accruing up to a 30-day maximum if the wages remained unpaid.
Labor Code §203A layoff is a separation the employer initiates, so Labor Code §201 treats it as a discharge and all earned unpaid wages, including vested vacation under §227.3, are due at the time of the layoff. The 72-hour rule in §202 belongs to an employee who quits without notice, and an employee who gives at least 72 hours' notice is paid on the last day - both true rules about quitting, neither the rule for a layoff. A leave of absence is not a separation at all, so no final pay is triggered.
Labor Code §201; §202; §227.3Labor Code §226 requires wage statements to show the inclusive dates of the period for which the employee is paid, along with gross/net wages, hours, rates, deductions, employee name with last four SSN digits, and the employer's name and address.
Labor Code §226Labor Code §226(a) requires the employer to keep a copy of each itemized wage statement, or the data needed to reconstruct it, for at least three years at the place of employment or a central location in California - the same three years §1174 sets for payroll records. Six months and one year both fall short of the statute, and ten years borrows the retention habit of tax records, which §226 does not impose.
Labor Code §226(a)Under Labor Code §226, an employer must allow a current or former employee to inspect or receive a copy of their wage statement records within 21 calendar days of a written or oral request.
Labor Code §226Labor Code §222 makes it unlawful to withhold any part of the wage arrived at through collective bargaining, and §223 separately bars secretly paying less than the scale a statute or contract requires, so a signed side deal is void rather than an exception - the parties cannot contract around the agreed rate. The prohibition does not distinguish private work from public work, and probationary status does not suspend the agreed scale.
Labor Code §222; §223Labor Code §221 makes it unlawful for an employer to collect back wages already paid, so a unilateral deduction is unlawful however thinly it is spread — over one paycheck or over two. Section 224 permits a deduction only where state or federal law requires it or where the employee expressly authorizes it in writing, which is why voluntary written authorization, or simply asking for repayment outside payroll, is the lawful route. Reaching into accrued vacation fails for the same reason: vested vacation is wages under §227.3, not a reserve the employer may draw on.
Labor Code §221, §224, §227.3Labor Code §224 allows deductions required by law (such as income tax withholding and payroll taxes) or expressly authorized in writing by the employee for insurance or benefits. Deductions for breakage, defective work, or business losses are unlawful.
Labor Code §224The §2810.5 notice must state the pay rate and basis, overtime rate, allowances, regular payday, and employer contact and workers' comp carrier information. It does not require a projection of total annual earnings.
Labor Code §2810.5Labor Code §2810.5(b) gives the employer seven calendar days from the change to notify the employee in writing, unless all the changes already appear on a timely itemized wage statement furnished under §226 or in another writing the law requires within seven days. Thirty days is not a deadline this statute contains. Reading the seven days as business days quietly stretches a period the Legislature wrote as calendar days. And nothing in §2810.5 ties the notice to the first payday at the new rate.
Labor Code §2810.5(b); §226Prong B asks one thing: is the work outside the usual course of the hiring entity's business? A framer hired by a framing contractor fails it, because framing is that company's core business. The ABC test was enacted by AB 5 at Labor Code §2750.3; AB 2257 repealed that section in 2020 and the test now sits at §2775(b)(1). A licensed framing subcontractor can still be an independent contractor — not through prong B, but through the separate construction-subcontractor criteria at §2781, which is where the license and bond requirements live. Method of payment comes from the older Borello factors, and years in the trade appears in no prong at all.
Labor Code §2775(b)(1); §2781Labor Code §226.8(b) authorises $5,000 to $15,000 for each willful misclassification, and §226.8(c) raises the range to $10,000 to $25,000 per violation where the employer engages in a pattern or practice. There is no warning-letter grace period: the penalty attaches to the first willful violation. Figures in the hundreds or at a flat $1,000 belong to other Labor Code penalty scales. And the licence consequence is not automatic revocation for a year - §226.8(d) sends a certified copy of the order to the CSLB, which must initiate disciplinary action within 30 days, while §226.8(e)-(f) make the violator post a notice of the violation for one year.
Labor Code §226.8(b), §226.8(c), §226.8(d), §226.8(e)-(f)Unemployment Insurance Code §1088.5 gives the employer 20 days from the employee's first day of work to report the new hire to the EDD, so a June 1 start is due June 21. Thirty days is not a deadline in §1088.5 at all. The quarterly return is a separate filing on its own clock and does not carry the new-hire report. And nothing ties the report to a payroll tax deposit — the deposit schedule and the new-hire report are independent obligations.
Unemployment Insurance Code §1088.5Form I-9, required by the federal Immigration Reform and Control Act, verifies two things about every person hired to work in the United States: identity, and authorization to work. The employer completes it and KEEPS it — it is not filed with USCIS or any other agency, which is what the three-business-day answer gets wrong (three business days is the deadline to complete the form, not to send it anywhere). Income-tax withholding is the W-4's job, and reporting a new hire to the EDD is a separate state form with its own deadline.
Federal Form I-9; Immigration Reform and Control Act (8 U.S.C. §1324a)FEHA's prohibition on discrimination and harassment generally applies to employers with five or more employees. (Harassment provisions can apply even more broadly, but the 5-employee threshold is the standard FEHA coverage rule for discrimination.)
Gov. Code §12900 et seq. (FEHA)Last reviewed: · editorial process
What's on the California CSLB Law & Business Exam?
The California CSLB Law & Business Exam is administered by the California Contractors State License Board (CSLB). Topic weights below come directly from the official exam blueprint — focus your study on the highest-weighted areas first.
Official source: California Contractors State License Board (CSLB) →
Every figure above, with the document it came from and the date we read it →
Topic blueprint
- 21%Contracts & Execution
- 20%Employment
- 15%Business Finances
- 14%Safety
- 13%Business & Licensing
- 12%Insurance & Liens
- 5%Public Works
How hard is the exam?
Moderate difficulty. The CSLB Law & Business exam runs 3.5 hours and is dense with contract law, payroll rules, and Cal/OSHA safety standards. CSLB publishes neither the question count nor the passing score — you are told the percentage of correct answers you need at the test site.
- Recommended study hours
- 40-80 hours over 4-8 weeks (most candidates)
- Published pass rate
- 57% across all attempts (n = 17,737) — CSLB, reporting to the Legislature, FY 2022/23. The same table gives 52% (n = 14,844) in FY 2019/20, 58% (n = 16,724) in FY 2020/21 and 54% (n = 25,061) in FY 2021/22. CSLB labels every one of them “Overall Pass %”, so none is a first-attempt rate.Source: CSLB — 2024 Sunset Review Oversight Report (PDF), Table 8: Examination Data
- Where to focus first
- Contracts (largest topic by exam weight) and Cal/OSHA Safety — together these are usually 40%+ of the exam.
Fees and salaries are approximate and change over time. The pass rate above is quoted from the source linked beside it, for the period that source covers — where we have not checked a source, we say so and give no number.
Frequently asked questions
How many CSLB Law & Business practice questions are in this bank?+
1,632 original practice questions across all 7 topics of the CSLB Law & Business exam, with full explanations, and California statute citations on 1,359 of them.
Is the CSLB Law & Business practice free?+
Yes — every practice question, organized by topic with full explanations, is free and needs no signup. The full timed mock exam (mock-readiness score, PDF report and weak-area retest) is free too. None of the practice is paywalled. Separately, PrepPass sells optional downloads — the CSLB Law & Business study guide, a printable cheat sheet, and bundles of them — which you never need in order to practice.
Are these the real CSLB exam questions?+
No. All questions are 100% original prose authored from public-domain sources (California Business and Professions Code, Civil Code, Labor Code, Title 16 CCR). We never copy from real CSLB exams or paid prep providers.
What topics does the CSLB Law & Business exam cover?+
Seven topics: Business Organization & Licensing, Business Finance, Employment Requirements, Insurance & Liens, Contracts & Performance, Public Works, and Safety.
What's the passing score for the CSLB Law & Business exam?+
CSLB does not publish one. It says you will be told at the test site what percentage of correct answers you need, and that the percentage varies by exam; passing candidates are never shown their own score. CSLB does not publish the question count either — prep providers quote figures for both, and those are theirs, not CSLB's. What CSLB does publish is the time: 3.5 hours at a PSI testing center.
Can I take the CSLB exam in Spanish?+
Yes — the official CSLB exam is offered in English and Spanish. Other languages may be available by translator request (4–6 weeks lead time). PrepPass practice questions are available in English, 中文, and Español.
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Yes — sign up free and the 'My mistakes' filter shows you only the questions you've missed across all your practice sessions. It updates automatically as you re-attempt and get them right.
Is there a study guide for the CSLB Law & Business?+
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