PHRca - Professional in Human Resources - California (PHRca) Employee Relations and Lifecycle 1 — Questions and Answers
Question 1: Under California Labor Code, if an employer terminates an employee without prior notice, when must the final paycheck (including all accrued vacation) be provided?
- Within 72 hours of termination
- On the next regular payday
- Immediately at the time of termination (Correct answer)
- Within 30 days of termination
Correct answer: Immediately at the time of termination
California Labor Code Section 201 requires employers to pay all wages, including accrued vacation, immediately at the time of an involuntary termination. Failure to do so exposes the employer to waiting-time penalties of up to 30 days of the employee's daily wages.
Question 2: A California employer asks a departing employee to sign a non-compete agreement as a condition of receiving severance. Under California law, this agreement is:
- Enforceable if limited to one year and a reasonable geographic area
- Enforceable only for executive-level employees
- Void and unenforceable regardless of scope or consideration (Correct answer)
- Enforceable if the employee signs it voluntarily
Correct answer: Void and unenforceable regardless of scope or consideration
California Business and Professions Code Section 16600 broadly voids non-compete agreements, with very narrow statutory exceptions (such as sale of a business). Unlike most states, California does not recognize a 'reasonable scope' carve-out — the clause is void even with consideration.
Question 3: The California WARN Act (Cal-WARN) requires 60 days advance written notice before a mass layoff. Which of the following thresholds triggers this requirement?
- 50 or more employees laid off at a single establishment within a 30-day period, for employers with 75 or more employees (Correct answer)
- 100 or more employees laid off company-wide within a 90-day period
- 25 or more employees laid off at a single establishment, regardless of employer size
- 75 or more employees laid off statewide within a 60-day period
Correct answer: 50 or more employees laid off at a single establishment within a 30-day period, for employers with 75 or more employees
Cal-WARN (Labor Code §1400 et seq.) applies to employers with 75 or more part- or full-time employees and is triggered when 50 or more employees at a single covered establishment are laid off within a 30-day period. This is broader than the federal WARN Act, which requires 100 employees.
Question 4: An employee requests to inspect their personnel file. Under California Labor Code Section 1198.5, the employer must make the file available within:
- 5 business days of the request
- 30 calendar days of the request (Correct answer)
- 14 business days of the request
- 10 business days of the request
Correct answer: 30 calendar days of the request
California Labor Code Section 1198.5 grants current and former employees the right to inspect their personnel file and requires the employer to make it available within 30 calendar days of receiving a written request. Employers who fail to comply may be fined $750 per violation.
Question 5: Which California Supreme Court doctrine allows an employee to sue for wrongful termination even though no written employment contract exists?
- The mixed-motive doctrine
- The after-acquired evidence doctrine
- The implied-contract exception to at-will employment (Correct answer)
- The dual-capacity doctrine
Correct answer: The implied-contract exception to at-will employment
In Foley v. Interactive Data Corp. (1988), the California Supreme Court recognized that employer conduct, policies, handbooks, longevity of service, and oral assurances can create an implied contract that limits the right to terminate at will. This is separate from the public-policy tort recognized in Tameny v. Atlantic Richfield.
Question 6: As of January 1, 2021, the California Family Rights Act (CFRA) applies to employers with how many employees, and what is the minimum service requirement for an employee to be eligible?
- 50 or more employees; 12 months of employment and 1,250 hours worked in the prior year
- 5 or more employees; 12 months of employment and 1,250 hours worked in the prior year (Correct answer)
- 15 or more employees; 6 months of employment and 1,000 hours worked in the prior year
- 25 or more employees; 12 months of employment and 1,000 hours worked in the prior year
Correct answer: 5 or more employees; 12 months of employment and 1,250 hours worked in the prior year
SB 1383 expanded CFRA effective January 1, 2021, lowering the employer threshold from 50 to just 5 employees. Employees remain eligible after 12 months of employment and 1,250 hours worked in the preceding 12 months, mirroring the federal FMLA eligibility standard while covering far smaller employers.
PHRca - Professional in Human Resources - California (PHRca) Employee Relations and Lifecycle 1
Under California Labor Code, if an employer terminates an employee without prior notice, when must the final paycheck (including all accrued vacation) be provided?