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Employment

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1. An employee works 10 hours on Monday. Under California law, how many overtime hours must be paid?
a.Zero overtime hours
b.1 hour at 1.5× rate
c.2 hours at 2× rate
d.2 hours at 1.5× rate

California requires overtime (1.5×) for hours worked beyond 8 in a single workday. Working 10 hours means 2 overtime hours at 1.5× the regular rate.

Labor Code §510
2. An employee works 13 hours in one day. Under California law, how is the pay structured?
a.All 13 hours at straight time
b.First 8 at straight time, 5 hours at 1.5×
c.First 8 at straight time, next 4 at 1.5×, last 1 at 2×
d.All 13 hours at 2×

California daily overtime: hours 1–8 at regular rate, hours 9–12 at 1.5×, hours 13+ at 2× (double time). So 13 hours = 8 regular + 4 at 1.5× + 1 at 2×.

Labor Code §510
3. What is the maximum number of hours an employee can work in a week before weekly overtime applies in California?
a.35 hours
b.40 hours
c.44 hours
d.48 hours

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 §510
4. An employee works all 7 days of a workweek. Under California law, overtime on the 7th consecutive day is:
a.Straight time all day
b.1.5× for the first 8 hours, 2× after 8 hours
c.2× for all hours
d.1.5× for all hours

On the 7th consecutive day in a workweek, all hours up to 8 are paid at 1.5×, and any hours beyond 8 are paid at double time (2×).

Labor Code §510
5. When must a 30-minute meal break be provided to an employee?
a.After 5 hours of work
b.After 4 hours of work
c.After 6 hours of work
d.After 8 hours of work

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 §512
6. How many paid rest breaks is an employee entitled to for an 8-hour shift?
a.One 10-minute break
b.Two 10-minute breaks
c.One 15-minute break
d.Two 15-minute breaks

California 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 Orders
7. A construction employee quits without giving notice. When must the employer provide the final paycheck?
a.Immediately
b.Within 24 hours
c.Within 72 hours
d.By the next regular payday

When 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 §202
8. If a contractor discharges (fires) an employee, when must final wages be paid?
a.Within 24 hours
b.Immediately at the time of discharge
c.Within 72 hours
d.By the next regular payday

When an employer discharges an employee, all earned wages including accrued vacation must be paid immediately at the time of termination.

Labor Code §201
9. How long does an employer have to report a new hire to California's Employment Development Department (EDD)?
a.7 days
b.20 days
c.30 days
d.60 days

California 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 §1088.5
10. What is the "ABC test" used to determine in California?
a.Whether a subcontractor is properly licensed
b.Whether prevailing wage applies to a project
c.Whether a worker is an employee or independent contractor
d.Whether a project requires a building permit

Under AB 5, California uses the ABC test to determine worker classification. Workers are presumed employees unless the hiring entity proves: (A) free from control, (B) outside usual business, (C) independently established trade.

Labor Code §2750.3
11. Prevailing wage rates on California public works projects are determined by:
a.The Department of Industrial Relations (DIR)
b.The general contractor on each project
c.The local city or county
d.The property owner

The California Department of Industrial Relations (DIR) establishes and publishes prevailing wage rates by craft and locality. These rates must be paid on qualifying public works projects.

Labor Code §1773
12. Which of the following is NOT a required item on a California itemized wage statement?
a.Total hours worked
b.Gross wages earned
c.Name and address of the employer
d.Employee's Social Security Number (full)

Wage statements must show gross/net wages, hours, pay rates, deductions, and the last 4 digits of the SSN — but NOT the full Social Security Number, to protect employee privacy.

Labor Code §226
13. A contractor wants to deduct the cost of a broken tool from an employee's paycheck. This is:
a.Illegal; employers cannot deduct for business losses from wages
b.Allowed if the employee signed a deduction authorization
c.Illegal unless the employee is found negligent in a court proceeding
d.Allowed for losses due to ordinary business risk

California prohibits employers from deducting ordinary business losses (breakage, shortages, faulty work) from employee wages. Employers bear the risk of business operations.

Labor Code §221
14. A contractor employs workers on a public works project with a contract value of $1,000. Prevailing wage requirements apply starting at what threshold?
a.$500
b.$1,000
c.$15,000
d.$25,000

California prevailing wage requirements apply to public works contracts of $1,000 or more. There is no exemption for small public works contracts.

Labor Code §1771
15. To bid on a California public works project, a contractor must be registered with:
a.The State Contractors License Board (CSLB)
b.The Department of Industrial Relations (DIR)
c.The local labor union
d.Both CSLB and the county assessor

In addition to holding a CSLB license, contractors must register with the Department of Industrial Relations (DIR) to be eligible to bid on or be awarded public works projects.

Labor Code §1725.5
16. What notice must a California employer post in the workplace?
a.Workers' Compensation notice only
b.Safety Data Sheets only
c.Personal Protective Equipment inventory
d.Cal/OSHA Safety and Health Poster and other required notices

California employers must post several mandatory workplace notices including the Cal/OSHA poster, minimum wage notice, Paid Sick Leave notice, and others. Failure to post is a violation.

Labor Code §6328
17. Under California law, construction industry employers must pay employees at least:
a.Weekly
b.Monthly
c.Every two weeks only
d.Biweekly or semimonthly

Construction employers are required to pay employees at least every two weeks (biweekly) or twice per month (semimonthly). This is stricter than some other industries.

Labor Code §204
18. An employer may require employees to wear a uniform. Who pays for the uniform?
a.Always the employee
b.Always the employer
c.The employee, if it can be worn as street clothes
d.The employer, if the uniform is a required condition of employment

If wearing a uniform is required as a condition of employment and it cannot be used as ordinary street clothing, the employer must provide and maintain the uniform at no cost to the employee.

IWC Wage Order 16
19. A contractor's employee is injured on the job. The employee's medical expenses under workers' compensation are paid by:
a.The employee's personal health insurance first
b.Split equally between employer and employee
c.Only if the employee can prove employer negligence
d.The contractor's workers' compensation insurance

Workers' 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 §3600
20. Which document must every California employer provide to new employees at time of hire?
a.A Wage Theft Protection Act Notice (WTPA Notice)
b.A copy of the employee handbook
c.A copy of the workers' compensation policy
d.An OSHA 300 log

California's Wage Theft Prevention Act requires employers to give all non-exempt employees a written notice at hire specifying pay rate, pay day, employer info, and workers' comp carrier.

Labor Code §2810.5
21. An employee's accrued, unused vacation at termination must be:
a.Forfeited per company policy
b.Paid out at the final rate of pay
c.Carried over to next year only
d.Paid at a reduced rate

California treats accrued vacation as earned wages. Upon termination (voluntary or involuntary), employers must pay all unused vacation at the employee's final rate of pay.

Labor Code §227.3
22. What is the penalty for each pay period that an employer willfully fails to provide a proper itemized wage statement?
a.$25
b.$50
c.$100
d.$250

The 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)
23. A contractor hires a worker who is classified as an independent contractor but actually meets the definition of an employee. The main risk to the contractor is:
a.The worker can refuse overtime
b.The worker can sue only in federal court
c.The contractor loses their CSLB bond
d.The contractor must pay back wages, taxes, and penalties

Misclassifying employees as independent contractors exposes contractors to liability for back wages, unpaid overtime, failure to provide benefits, unpaid payroll taxes, and significant penalties.

Labor Code §226.8
24. An hourly laborer earning $24.00 per hour works exactly 11 hours on a single workday with no other days worked that week. What is that day's gross pay?
a.$264.00
b.$288.00
c.$300.00
d.$396.00

First 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 §510
25. A carpenter earns $30.00 per hour and works 14 hours in one workday. What is the gross pay for that day?
a.$510.00
b.$540.00
c.$420.00
d.$630.00

Hours 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 §510
26. An employee works 8 hours per day Monday through Friday and then 6 hours on Saturday, for a total of 46 hours in the workweek. How many hours must be paid at the overtime rate?
a.6 hours at 1.5×
b.0 hours; no overtime is owed
c.6 hours at 2×
d.2 hours at 1.5×

No 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 §510
27. A construction crew wants to work four 10-hour days each week without daily overtime kicking in at hour 9. What must be in place for this to be lawful?
a.Verbal agreement of the foreman
b.A properly adopted alternative workweek schedule approved by a secret-ballot election of the affected employees
c.A written request from a single employee
d.Approval from the CSLB

Labor Code §511 allows an alternative workweek (such as four 10-hour days) only if it is adopted through a written proposal and approved by at least two-thirds of affected employees in a secret-ballot election, with results reported to the state.

Labor Code §511
28. Under California law, how is daily overtime determined relative to the regular rate of pay?
a.Overtime is always paid at the federal minimum wage
b.Overtime is a flat $15 premium per hour regardless of base pay
c.Overtime is calculated as a multiple (1.5× or 2×) of the employee's regular rate of pay
d.Overtime equals the employee's base hourly rate plus tips

California overtime is a multiplier applied to the employee's regular rate of pay — 1.5× for daily overtime and 2× for double time. The regular rate must include nondiscretionary bonuses and similar earnings, not just the base hourly wage.

Labor Code §510
29. An employee is scheduled for a 12-hour shift on a construction site. How many 30-minute meal periods must the employer provide?
a.Two meal periods
b.None; meal periods are optional for shifts over 10 hours
c.One meal period only
d.Three meal periods

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 §512
30. An employer fails to provide a legally required meal period to an employee on a given day. What does California law require the employer to pay?
a.Triple the employee's hourly wage for the entire shift
b.A flat $50 penalty paid to the state
c.Nothing, as long as the employee was not disciplined
d.One additional hour of pay at the employee's regular rate

Under Labor Code §226.7, if an employer fails to provide a compliant meal or rest period, it must pay the employee one additional hour of pay at the regular rate for each workday a meal violation occurs (and one more for a rest violation).

Labor Code §226.7
31. A construction worker is scheduled to work a 6-hour shift. Under what condition may the meal period be waived?
a.By mutual consent of the employer and employee
b.The employer may waive it unilaterally
c.It can never be waived under any circumstances
d.Only with written approval from the Labor Commissioner

For 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 §512
32. On a construction job site, who is generally responsible for providing potable drinking water and toilet facilities for employees?
a.Each employee for themselves
b.Only the project owner
c.The employer, under IWC Wage Order 16 for the construction industry
d.The local water utility

IWC Wage Order 16 governs on-site occupations in construction and requires employers to provide adequate potable drinking water and suitable toilet facilities for employees at the work site.

IWC Wage Order 16
33. During a paid 10-minute rest break, an employee must be:
a.Available by phone in case the crew needs help
b.Required to stay at their assigned work station
c.Clocked out and unpaid for the time
d.Relieved of all duties and free to leave the work area

A rest period must be a genuine break: the employee must be relieved of all duty and free from employer control during the 10 minutes, yet it remains paid time. Requiring the worker to stay on call or at their station defeats the purpose.

Labor Code §226.7
34. An employee gives the contractor 72 hours of advance notice that they will quit. On the employee's last scheduled workday, when are final wages due?
a.Within 72 hours after the last day worked
b.By the next regular payday
c.Within 30 days of resignation
d.On the last day of work

When 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 §202
35. A contractor willfully fails to pay a discharged employee's final wages on time. The employee earned $200 per day. The waiting-time penalty under Labor Code §203 continues until paid, up to a maximum of:
a.10 days
b.20 days
c.30 days
d.60 days

The 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 §203
36. An employee earning $160 per day is discharged, and the contractor pays the final wages 8 days late without any good-faith dispute. What is the waiting-time penalty?
a.$1,280
b.$160
c.$800
d.$4,800

The §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 §203
37. A contractor lays off a worker at the end of a project. With respect to final pay, a layoff is treated the same as:
a.A discharge — final wages are due immediately
b.A voluntary quit without notice
c.A leave of absence with no immediate pay required
d.A resignation with 72 hours' notice

A layoff is an employer-initiated separation, so it is treated as a discharge under Labor Code §201. All earned and unpaid wages, including accrued vacation, are due immediately at the time of the layoff.

Labor Code §201
38. Which of the following must appear on an employee's itemized wage statement in California?
a.The employee's home address
b.The employer's federal tax return
c.The inclusive dates of the pay period
d.The names of the employee's dependents

Labor 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 §226
39. How long must a California employer retain copies of employee itemized wage statements (or the data needed to reproduce them)?
a.6 months
b.1 year
c.At least 3 years
d.10 years

Labor Code §226 requires employers to keep a copy of each wage statement, or the records necessary to reconstruct it, for at least three years at the place of employment or a central location.

Labor Code §226
40. A current or former employee submits a written request to inspect or copy their payroll records. Within how many days must the employer comply?
a.3 business days
b.60 calendar days
c.21 calendar days
d.There is no time limit

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 §226

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Sen Lin, PrepPass Founder · Verified against California CSLB · How we review

What's on the California CSLB Business & Law Exam?

The California CSLB Business & Law 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)

Exam length
115 questions · 3.5 hours
Passing score
73%

Topic blueprint

  • 21%
    Contracts & Execution
  • 20%
    Employment
  • 15%
    Business Finances
  • 14%
    Safety
  • 13%
    Business & Licensing
  • 12%
    Insurance & Liens
  • 5%
    Public Works
Sen Lin, PrepPass Founder · Verified against California Contractors State License Board (CSLB) · How we review

How hard is the exam?

Moderate difficulty. The CSLB Business & Law exam (115 questions, 3.5 hours, ~73% to pass) is dense with contract law, payroll rules, and Cal/OSHA safety standards. Most candidates pass on the first or second attempt with focused study.

Recommended study hours
40-80 hours over 4-8 weeks (most candidates)
First-attempt pass rate
Approximately 60-65% first-attempt pass rate (industry estimate; CSLB does not publish official rates). Repeat-takers typically pass within 2-3 attempts.
Where to focus first
Contracts (largest topic by exam weight) and Cal/OSHA Safety — together these are usually 40%+ of the exam.

Figures (pass rates, fees, salaries) are approximate and can change — always verify with the official testing body or licensing board before you rely on them.

Frequently asked questions

How many CSLB Business & Law practice questions are in this bank?+

1,605 original practice questions across all 7 topics of the CSLB Business & Law exam, with full explanations and California statute citations on every question.

Is the CSLB Business & Law 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. The only paid product is our optional $9.99 study-guide eBook.

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 Business & Law 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 Business & Law exam?+

A pass mark of about 73% is commonly cited by exam-prep providers, but CSLB does not publish a fixed public raw-score cutoff — it reports only PASS/FAIL. The real exam is 115 questions over 3.5 hours at a PSI testing center; a solid practice target is 75%+.

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.

Does PrepPass track which questions I get wrong?+

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.

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