Employment Requirements

Introduction

One in five questions on the Law & Business exam comes from this section, and there is a reason it carries so much weight: the moment a contractor hires help, an entire body of California employment law switches on. Who counts as an employee, how they must be paid, what you must withhold and remit, how you supervise and train them, and what records you have to keep — all of it is regulated, and much of it is regulated more strictly in California than under federal law.

The section rewards a particular instinct that trips up candidates trained on federal norms or on out-of-state experience: when California and federal rules disagree, the more protective rule almost always wins, and that rule is usually California's. Daily overtime, higher minimum wages, mandatory meal and rest breaks, and a worker-classification test that presumes employee status are all places where the California answer is the correct answer even when a federally trained test-taker "knows" otherwise.

One current-law note before we begin, because it is the single most-tested trap in this material. The default test for employee versus independent contractor is now the ABC test codified at Labor Code §2775 (from AB 5 in 2019, refined by AB 2257 in 2020). It replaced the older, more flexible Borello balancing test. If a question is written as though Borello's multi-factor weighing still decides classification by default, that is the wrong answer. This chapter reflects the ABC test throughout.

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Learning objectives

After working through this chapter you should be able to:

• Apply the ABC test (Lab. Code §2775) to decide whether a worker is an employee or an independent contractor, and explain why part B so often makes construction trade workers employees.
• State the consequences of willful misclassification and explain why a 1099 or a signed "independent contractor" agreement does not change a worker's legal status.
• List the federal and state onboarding steps for a new hire: Form I-9 verification, new-hire reporting to the EDD, and payroll-tax registration.
• Identify the protected characteristics and the five-employee threshold under California's FEHA, and the harassment-prevention training duty at five or more employees.
• Explain California's daily overtime rule (over 8/day and over 12/day) and how it differs from the federal 40-hour-only rule.
• Apply the meal- and rest-period rules and the one-hour premium for a missed break.
• State the pay-timing, itemized pay-stub, and final-pay/waiting-time-penalty rules.
• Separate what is withheld from the employee from what the employer pays, and name the two agencies (IRS and EDD) that receive payroll taxes.
• Explain the recordkeeping and personnel-file access duties, and why hiring employees triggers workers' compensation as both a legal duty and a bid cost.

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Part A — Hiring employees

Employee or independent contractor? The ABC test

This is the most important — and most frequently missed — rule in the section. Under Labor Code §2775, California presumes every worker is an employee, and a hiring business can rebut that presumption only by proving all three parts of the ABC test:

• (A) the worker is free from the hirer's control and direction in performing the work, both under the contract and in fact;
• (B) the work is outside the usual course of the hiring business; and
• (C) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

All three must be satisfied. Fail any single prong and the worker is an employee. This codified the California Supreme Court's Dynamex decision and displaced the older Borello multi-factor balancing test as the default rule (Lab. Code §2775).

Part B is the quiet killer in construction. If a framing contractor hires framers, the work those framers do is the usual course of the business — so prong B fails and they are employees, no matter how the paperwork reads.

California example. A licensed framing contractor in Bakersfield brings on three framers, pays them by the piece, issues 1099s, and calls them "independent subs." Because framing is the very trade the company is in, prong B is not met — the workers are employees under §2775. The 1099 label is legally irrelevant.

What misclassification costs you

Getting classification wrong is not a paperwork foot-fault. Willfully misclassifying an employee as an independent contractor exposes the business to civil penalties under Labor Code §226.8 on top of back liability for unpaid payroll taxes, unpaid overtime, and missing workers'-compensation coverage (Lab. Code §§226.8, 2775). Enforcement can arrive from several directions at once — the Labor Commissioner, the EDD, and the workers'-compensation system — because each agency applies the employee presumption independently.

The trap the exam loves: paperwork does not defeat the test. Issuing a Form 1099 or having the worker sign an "independent contractor agreement" does nothing if the ABC test makes them an employee. The economic reality controls, not the label.

California example. After an injury on the job, a Riverside contractor's "1099 subcontractor" files a workers'-comp claim. The contractor has no coverage for the worker because he was treated as independent. Because the ABC test makes the worker an employee, the contractor now faces the claim, back payroll taxes, and civil misclassification penalties — the signed agreement is no shield.

The hiring process: job descriptions and lawful selection

Sound hiring starts with a clear, written job description and job-related selection criteria, then moves through required onboarding. Interview questions and hiring decisions must steer clear of protected-characteristic bias (Cal. Gov. Code §12900 et seq.), and the practical onboarding checklist — I-9 verification, new-hire reporting, tax-withholding setup, and safety orientation — should be completed at the start of employment, not weeks later (Federal IRCA — Form I-9). A well-defined role is also the foundation for later evaluation and, if it comes to it, defensible discipline.

California example. A plumbing company writes a one-page job description for a C-36 apprentice listing the physical tasks, licenses, and safety duties, and screens applicants only against those job-related criteria. It avoids questions about age, family plans, or national origin, and completes the I-9 and new-hire paperwork on day one.

Form I-9: federal work-authorization verification

Federal law requires every employer to verify each new hire's identity and authorization to work in the United States by completing Form I-9 and examining acceptable documents within the first days of employment (Federal Immigration Reform and Control Act — Form I-9). Two details are tested. First, the completed I-9 is retained by the employer, not mailed to the government, and must be produced on request. Second, the worker chooses which acceptable documents to present; the employer may not demand specific documents, which would itself be a form of discrimination. The requirement applies to all employees regardless of citizenship.

California example. A drywall contractor keeps a binder of completed I-9 forms in the office rather than sending them anywhere. When a new hire offers a driver's license and Social Security card from the acceptable-documents list, the employer accepts them and does not insist on a passport instead.

New-hire reporting and EDD registration

California layers its own onboarding duties on top of the federal I-9. Once an employer pays wages over the statutory threshold, it must register with the EDD and set up accounts to withhold and remit state payroll taxes. It must also report every newly hired or rehired employee to the state new-employee registry on Form DE 34 within a short window after the start-of-work date (Cal. Unemployment Insurance Code §13000 et seq.; EDD, California Employer's Guide (DE 44)). New-hire reporting exists mainly to enforce child-support obligations and detect fraud.

Do not confuse the two systems: the I-9 is a retained federal form, while new-hire reporting is a state filing to the EDD. They are separate obligations with separate purposes.

California example. A concrete contractor hires a finisher on Monday, completes the federal I-9, and separately files the DE 34 with the EDD within the reporting window — two distinct steps satisfying two different laws.

Nondiscrimination in hiring — FEHA and its federal counterparts

California's Fair Employment and Housing Act (FEHA) prohibits discrimination and harassment based on protected characteristics — race, sex, religion, disability, age, national origin, and others — and it requires employers to reasonably accommodate disabilities (Cal. Gov. Code §12900 et seq.). The tested threshold: most FEHA provisions apply to employers with five or more employees, though the harassment provisions reach smaller employers. Federal law runs in parallel and sets a floor: Title VII bars discrimination on protected classes and the Americans with Disabilities Act (ADA) requires reasonable accommodation (Federal Title VII; Federal ADA). Where California is more protective, the California rule governs (Federal Fair Labor Standards Act; Cal. Gov. Code §12900 et seq.).

California example. A four-person electrical shop is below the five-employee line for most FEHA provisions, but it is still bound by the harassment rules — so a harassment complaint by one of its workers is actionable even though the shop is small.

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Part B — Supervising and training employees

The duty to supervise and train, including mandated training

Employers are responsible for competent supervision and for training workers to do their jobs safely and correctly — onboarding, job-specific instruction, and progressive oversight of less-experienced crew. Some of that training is legally mandated, not optional. Two categories matter for the exam:

• Harassment-prevention training. An employer with five or more employees must provide harassment-prevention training to its workforce (Cal. Gov. Code §12950.1).
• Safety training. Every employer must train employees on workplace hazards as part of its Injury and Illness Prevention Program (Cal. Lab. Code §6401.7) — which ties this section to the Safety material in Section 7.

A related point the exam tests: ultimate responsibility for supervising the licensee's construction operations rests with the licensed contractor and its qualifying individual, and cannot simply be delegated away (Cal. Lab. Code §6401.7). Good supervision and training are not just good management — they reduce defects, injuries, and legal exposure.

California example. A roofing company that has grown to seven employees rolls out the required harassment-prevention training and documents that each worker completed the mandatory fall-protection and hazard training under its IIPP. Both are legal requirements at that size, not perks.

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Part C — Payroll: wage-and-hour rules and the mechanics of paying people

Minimum wage

Every hour worked must be paid at at least the applicable minimum wage (Cal. Lab. Code §§1182.12, 1197). Two rules are tested. First, California's minimum is higher than the federal minimum, so the federal floor does not control in California. Second, many cities and counties set local minimums that are higher still, and the employer must pay whichever rate is highest for the job's location. Minimum wage cannot be averaged across a week or offset by a generous piece rate — each hour must independently meet the floor.

California example. A landscaping contractor with crews in two cities must pay each crew the higher of the state or that city's local minimum wage. A high piece rate on a fast day does not excuse paying below minimum on a slow one — every hour stands on its own.

Daily and weekly overtime

This is the signature California-versus-federal distinction, and a reliable exam trap. Under Labor Code §510, nonexempt employees earn overtime on a daily basis, not just a weekly one:

• 1.5× (time-and-a-half) for hours over 8 in a workday, over 40 in a workweek, and for the first 8 hours on the seventh consecutive workday; and
• 2× (double time) for hours over 12 in a workday, and for hours over 8 on the seventh consecutive workday (Cal. Lab. Code §510; IWC Wage Order No. 16).

Federal law requires overtime only after 40 hours in a week — it has no daily overtime and no double time. A candidate applying the federal rule to a 10-hour California workday will get the question wrong.

California example. A laborer works 10 hours Monday on a Fresno job site. Even though he is nowhere near 40 hours for the week, California owes him two hours at time-and-a-half for the hours past 8 that day. If he had worked 13 hours, the thirteenth hour would be double time.

Meal and rest periods

Nonexempt employees are generally entitled to a 30-minute unpaid meal period that must begin before the end of the fifth hour of work, with a second meal period for shifts longer than 10 hours, plus a paid 10-minute rest period for roughly every four hours worked (Cal. Lab. Code §512; IWC Wage Order No. 16). If the employer fails to provide a compliant meal or rest period, it owes one additional hour of pay — a "premium" — for each day a break was denied.

Two tested details: the first meal must generally start before the end of the fifth hour, not just anytime during the shift; and a missed break is not free — it carries per-day premium liability.

California example. On a long pour day, a concrete crew works straight through without a lunch break starting before the fifth hour. The contractor owes each affected worker one extra hour of pay for that day — a cost that recurs for every day a compliant break is not provided.

Wage Order 16: the construction-specific rules

The wage-and-hour rules above are tailored for field construction by IWC Wage Order No. 16, the industry order for on-site construction, drilling, logging, and mining (Cal. Code Regs. tit. 8, §11160). It sets how overtime, meal and rest periods, reporting-time pay, and tools-and-equipment obligations apply to construction field workers, and it contains provisions specific to crews and remote job sites. The exam expects you to know that construction uses Wage Order 16, not the general wage order — and that Wage Order 16 tailors these requirements rather than eliminating them.

California example. A grading contractor applies Wage Order 16 to its field crews. When it schedules a remote desert site, it follows Wage Order 16's specific provisions rather than assuming the office or retail wage order applies.

Pay timing and itemized pay stubs

Wages must be paid on regular, scheduled paydays — most non-overtime wages at least twice a month on designated dates (Cal. Lab. Code §§200, 204). Each payment must come with an itemized wage statement (pay stub) showing the required details: gross wages, total hours worked, all deductions, net pay, the pay-period dates, applicable hourly rates, and the employer's identity (Cal. Lab. Code §226). Missing or inaccurate pay stubs carry their own penalties, separate from any unpaid-wage liability.

California example. A contractor who pays correctly but hands out a check with only the net amount printed on it still violates the law: §226 requires the full itemized breakdown, and the defective stub is separately penalized even though the wages themselves were right.

Final pay and waiting-time penalties

The timing of final wages depends on how the employment ends (Cal. Lab. Code §§201, 202, 203):

• An employee who is fired or laid off must be paid all final wages immediately at termination.
• An employee who quits with at least 72 hours' notice is paid on their last day.
• An employee who quits without notice must be paid within 72 hours.

If the employer pays late, a waiting-time penalty accrues at the employee's daily wage rate for each day the pay is late, up to a maximum of 30 days (Cal. Lab. Code §203). This penalty is routinely underestimated — 30 days of wages for a single late final check is a large, avoidable cost.

California example. A contractor fires a carpenter on Friday but waits until the next regular payday two weeks later to cut the final check. The carpenter is owed waiting-time penalties at his daily rate for those late days — potentially far more than the amount originally in dispute.

Payroll taxes: withholding and remittance to two governments

Running payroll means correctly withholding from each paycheck, adding the employer's own taxes, and remitting everything to two different agencies on their own schedules (IRS Publication 15 (Circular E); Cal. Unemployment Insurance Code §13020; EDD, California Employer's Guide (DE 44)). Sort the pieces:

• Withheld from the employee: federal income tax and California Personal Income Tax (PIT); the employee's share of FICA (Social Security and Medicare); and California State Disability Insurance (SDI).
• Paid by the employer: the matching FICA share; federal unemployment tax (FUTA); and California Unemployment Insurance (UI) and Employment Training Tax (ETT).

The federal deposits go to the IRS (reported on the quarterly Form 941 or annual Form 944, with year-end W-2s to workers and W-4s collected from them); the California deposits go to the EDD (IRS Publication 15 (Circular E); EDD, California Employer's Guide (DE 44)). A tested subtlety carried over from Business Finances: federal deposit frequency keys off the dollar amount of accumulated tax liability during a lookback period — not the number of employees (IRS Publication 15 (Circular E)). Withheld taxes are held in trust and must be deposited on schedule, not kept until year-end.

California example. A contractor with four employees withholds federal income tax, PIT, the workers' FICA share, and SDI from each check; adds the employer FICA match, FUTA, UI, and ETT; then deposits the federal portion with the IRS and the state portion with the EDD on their separate schedules. Having only four employees does not by itself make the deposits infrequent — the dollar liability does.

Workers' compensation as a cost and duty of hiring

Hiring employees triggers the duty to secure workers' compensation coverage — every California employer must carry it (Cal. Lab. Code §3700), and a contractor must keep a current Certificate of Workers' Compensation (or a valid exemption) on file with CSLB as a condition of licensure (Cal. Bus. & Prof. Code §7125). Workers' comp is both a legal requirement and a real payroll cost that must be built into every bid; the premium generally scales with payroll and the risk class of the trade.

The no-employee exemption is phasing out, and the exact status is heavily tested. Under SB 216 (2022), as amended by SB 1455 (Stats. 2024, Ch. 485), the old "no employees, no coverage" exemption has already ended for certain higher-risk classifications — C-8 (concrete), C-20 (HVAC), C-22 (asbestos), C-39 (roofing), and D-49/C-61 (tree service) — and it ends for all remaining classifications on January 1, 2028 (Cal. Bus. & Prof. Code §7125). A blanket claim that "as of 2026 every no-employee contractor must carry workers' comp" is wrong — most classifications keep the exemption until 2028. (Workers' comp coverage, the uninsured-employer consequences, and who counts as an "employee" for coverage are developed further in Section 4, Insurance and Liens.)

California example. A sole-owner roofer (C-39) with no employees can no longer claim the exemption and must carry workers' comp today, while a sole-owner painter (C-33) with no employees may still claim it until the 2028 all-classifications deadline arrives.

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Part D — Evaluation and record-keeping

Payroll recordkeeping

Employers must keep accurate payroll records — hours worked, wages paid, deductions, and employee information — and retain them for the period the law requires, generally several years (Cal. Lab. Code §§1174, 1174.5). Employees have the right to inspect or receive copies of their own records within a set time after a request, and a failure to keep or produce records is separately penalized. Beyond compliance, good records protect the employer: in a wage dispute, missing records shift the evidentiary burden onto the employer.

California example. A contractor sued over unpaid overtime cannot produce time records for the period in question. Because the law required those records, the gap works against the contractor, who now struggles to rebut the worker's account of the hours.

Performance evaluation and personnel-file access

Employers should evaluate performance and document it in writing, and they must maintain personnel records the employee has a right to inspect. California gives employees the right to review their personnel file and to obtain copies of documents they signed, within a set time after a written request (Cal. Lab. Code §1198.5; and, for payroll-record copies, Cal. Lab. Code §226). Consistent, dated, written evaluations support fair discipline and promotion decisions and are the contractor's best defense against wrongful-termination or discrimination claims — an undocumented verbal warning is worth little in a dispute.

California example. When a laborer requests his personnel file, the contractor must make it available within the statutory window (Lab. Code §1198.5). Because the contractor kept written, dated performance notes, a later termination is far easier to defend than if it rested on unrecorded verbal warnings.

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Key numbers & deadlines

Worker classification (ABC test): a worker is an employee unless the hirer proves all three prongs — (A) free from control, (B) outside the usual course of business, (C) independently established trade (Cal. Lab. Code §2775). Failing any one prong = employee. A 1099 or written agreement does not change the result.

Misclassification penalty: willful misclassification carries civil penalties (Cal. Lab. Code §226.8) plus back taxes, overtime, and workers'-comp liability.

FEHA: most provisions apply at 5 or more employees; harassment provisions reach smaller employers; harassment-prevention training required at 5+ (Cal. Gov. Code §§12900 et seq., 12950.1).

Overtime (Cal. Lab. Code §510): 1.5× over 8/day, over 40/week, and first 8 hours on the 7th consecutive day; 2× over 12/day and over 8 on the 7th consecutive day. (Federal: 40/week only.)

Meal/rest (Cal. Lab. Code §512): 30-min unpaid meal before end of the 5th hour (second meal for shifts >10 hrs); paid 10-min rest per ~4 hrs; 1 hour of premium pay per day for a missed meal or rest period.

Pay timing / pay stubs: most wages paid at least twice a month (§204); itemized wage statement required (§226).

Final pay (Cal. Lab. Code §§201–203): fired = immediately; quit with 72 hrs' notice = last day; quit without notice = within 72 hrs. Waiting-time penalty = daily wage rate per late day, up to 30 days.

Payroll taxes — two agencies: IRS (federal income tax, FICA both shares, FUTA; Forms 941/944, W-2/W-4) and EDD (UI + ETT employer-paid; SDI + PIT employee-withheld) (IRS Pub. 15; UI Code §13020; DE 44). Federal deposit frequency depends on dollar liability, not headcount.

Onboarding: federal Form I-9 (retained by employer) + California new-hire report DE 34 to the EDD.

Workers' comp (current-law flag): required for every employer (Cal. Lab. Code §3700; B&P §7125). The no-employee exemption is phasing out — already gone for C-8, C-20, C-22, C-39, D-49/C-61; all classifications by 1/1/2028 (SB 216 as amended by SB 1455). "All no-employee contractors need WC as of 2026" is wrong.

Records: retain payroll records (Lab. Code §§1174, 1174.5); employee personnel-file access (Lab. Code §1198.5).

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Summary

Employment Requirements is the second-largest slice of the exam because hiring even one worker switches on California's demanding wage-and-hour, tax, and recordkeeping regime. The governing instinct is to lead with classification: under the ABC test (Lab. Code §2775), a worker is an employee unless the hirer proves all three prongs, and in construction prong B usually settles it — a framer working for a framing contractor is an employee, 1099 or not. Misclassification is not a paperwork issue; it draws civil penalties plus back taxes, overtime, and workers'-comp exposure (Lab. Code §226.8), and no label defeats the test.

Onboarding pairs a federal Form I-9 (kept by the employer) with California new-hire reporting to the EDD, all inside FEHA's nondiscrimination rules, which reach most employers at five employees and require harassment-prevention training at that size (Gov. Code §§12900, 12950.1). Paying people correctly means mastering the California-specific rules that differ from federal law: daily overtime at 8 and 12 hours (§510), meal and rest breaks with a one-hour premium for misses (§512), twice-monthly pay with itemized stubs (§§204, 226), and strict final-pay timing backed by waiting-time penalties up to 30 days (§§201–203). Payroll taxes flow to two governments — the IRS and the EDD — with a clear split between what is withheld and what the employer pays. Finally, hiring triggers workers' compensation as both a duty and a bid cost, with the no-employee exemption phasing out for all classifications by 2028, and it obligates the contractor to keep records and honor employees' personnel-file access rights.

Key takeaways

• Classification first, and the presumption is "employee." The ABC test (§2775) requires all three prongs to treat a worker as an independent contractor; in construction, prong B (work outside the usual business) usually fails.
• Labels don't work. A 1099 or a signed "independent contractor" agreement does not change status; willful misclassification is penalized (§226.8) and drags in back taxes, overtime, and workers' comp.
• Onboard on two tracks. Complete the federal I-9 (retained by the employer, worker picks the documents) and the California DE 34 new-hire report to the EDD.
• FEHA at five. Most FEHA protections and the harassment-prevention training duty apply at 5+ employees; harassment rules reach even smaller shops (§§12900, 12950.1).
• California pays daily overtime. 1.5× over 8/day and 2× over 12/day (§510) — not the federal 40-hour-only rule.
• Missed breaks cost an hour. Meal before the 5th hour, rest every ~4 hours, one hour of premium pay per day for a denied break (§512).
• Final pay is fast. Fired = immediately; quit-with-notice = last day; quit-without-notice = within 72 hours; waiting-time penalties up to 30 days (§§201–203).
• Two agencies, two roles. IRS (FICA both shares, FUTA, federal income tax) and EDD (UI/ETT employer-paid; SDI/PIT employee-withheld); federal deposit frequency turns on dollar liability, not headcount.
• Workers' comp is mandatory and a bid cost. Every employer needs it (§3700; B&P §7125); the no-employee exemption is ending — already gone for C-8/C-20/C-22/C-39/D-49, all classifications by 1/1/2028 (SB 216 / SB 1455). Do not say every no-employee contractor needs WC as of 2026.
• Keep records and open the file. Retain payroll records (§§1174, 1174.5) and honor employees' right to inspect their personnel file (§1198.5); written, dated evaluations are your best defense.

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Sources

Official California and federal primary law, cited to the California Legislative Information site (leginfo.legislature.ca.gov), the CSLB Law Book, and the responsible federal/state agencies. Statutory rules reflect law in force as of the 2026 edition.

• Cal. Lab. Code § 2775 — worker classification: the ABC test (codifying Dynamex; AB 5 (2019), refined by AB 2257 (2020)); replaced the Borello balancing test as the default.
• Cal. Lab. Code § 226.8 — civil penalties for willful misclassification of an employee as an independent contractor.
• Cal. Lab. Code § 510 — daily and weekly overtime (1.5× over 8/day and 40/week; 2× over 12/day; seventh-consecutive-day rules).
• Cal. Lab. Code § 512 — meal periods (and, with the wage orders, rest periods) and the one-hour premium for noncompliance.
• Cal. Lab. Code §§ 1182.12, 1197 — minimum wage (applicable state/local minimum must be paid).
• Cal. Lab. Code §§ 200, 204 — wage definitions and timing of wage payment (most wages at least twice a month).
• Cal. Lab. Code § 226 — itemized wage-statement (pay stub) content requirements and copies of payroll records.
• Cal. Lab. Code §§ 201, 202, 203 — final-pay timing and waiting-time penalties (up to 30 days).
• Cal. Lab. Code §§ 1174, 1174.5 — employer payroll-recordkeeping and retention obligations.
• Cal. Lab. Code § 1198.5 — employee right to inspect the personnel file.
• Cal. Lab. Code § 6401.7 — employer safety-training duty under the Injury and Illness Prevention Program.
• Cal. Lab. Code § 3700 — every employer must secure workers' compensation coverage.
• Cal. Bus. & Prof. Code § 7125 — contractor must keep a Certificate of Workers' Compensation (or valid exemption) on file with CSLB; the no-employee exemption is phasing out under SB 216, as amended by SB 1455 (Stats. 2024, Ch. 485) — already ended for C-8, C-20, C-22, C-39, D-49/C-61; all classifications by 1/1/2028.
• Cal. Gov. Code § 12900 et seq. (FEHA) — anti-discrimination and harassment in hiring and employment (most provisions at 5+ employees).
• Cal. Gov. Code § 12950.1 — mandatory harassment-prevention training for employers with 5 or more employees.
• Cal. Unemployment Insurance Code § 13020 — employer PIT withholding and remittance.
• Cal. Unemployment Insurance Code § 13000 et seq. — new-hire reporting (DE 34) and related employer duties.
• IWC Wage Order No. 16 (Cal. Code Regs. tit. 8, § 11160) — the on-site construction wage order (overtime, meal/rest, reporting-time, tools).
• IRS Publication 15 (Circular E) — federal payroll-tax withholding, FICA and FUTA, and deposit schedules (frequency keyed to lookback-period liability; Forms 941/944, W-2/W-4).
• Federal Immigration Reform and Control Act (IRCA) — Form I-9 employment-eligibility verification.
• Federal Title VII; Federal Americans with Disabilities Act (ADA); Federal Fair Labor Standards Act (FLSA) — federal anti-discrimination, disability-accommodation, and minimum-wage/overtime floors; the more protective California rule governs where the two differ.
• EDD, California Employer's Guide (DE 44) — California payroll-tax mechanics, employer registration, and the DE 34 new-employee report.
• CSLB, California Contractors License Law & Reference Book (2026 ed.) and Law and Business Study Guide — official exam content outline (Section 3: Employment Requirements).

The four official CSLB subtopics for this section — Hiring employees; Supervising and training employees; Evaluation and record-keeping; Payroll — are mapped to the parts above.