Labor Code Flashcards

1
Q

What is true regarding the Employer I.D. Number?
A It is recorded by the CSLB upon application for a license
B. It is obtained from the IRS
C. It is necessary when you apply for a partnership license
D. All of the above

A

D. All of the above

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2
Q

If a contractor is operating as a corporation or a partnership and obtains afederal tax ID number, to whom does he or she send the number?

A All government agencies that he or she deals with
B.The Employment Development Department
C.The Contractors License Board
D. No one, it is used only when filing the income tax

A

C.The Contractors License Board

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3
Q

Is it legal for a contractor to require employees to take a lie detector test?

A. It is not legal for the contractor to require lie detector tests, but it would be legal for the government to require them
B. It is not legal for any employer to require lie detector tests
C. It is only legal for a contractor to require lie detector tests of employees who have criminal records
D. It is legal for the contractor to require lie detector test, but is would not be legal for the government to do so.

A

A. It is not legal for the contractor to require lie detector tests, but it would be legal for the government to require them

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4
Q

If a newly hired employee does not have a Social Security Number, what should be done?
A. The employee must apply for one
B. The employer must, on behalf of the employee, apply for one
C. If a W-2 is provided, a number is needed
D. Turn him in to the Social Security Administration

A

A. The employee must apply for one

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5
Q

A construction company was hiring a new crew and asked each prospective employee for their social security number. Several prospective employees had remembered their numbers but did not have a card or documentation. The practice of relying on memorized social security numbers is:
A. Acceptable: a memorized number is sufficient
B. Acceptable: new employees do not have to provide documentation
C. Acceptable: only resident aliens working here must show documentation
D. Unacceptable: the actual social security card should have been inspected

A

D. Unacceptable: the actual social security card should have been inspected

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6
Q

Which of the following hiring practices is NOT acceptable?

A. Refusing to hire a weak woman because the job required heavy manual labor
B.Refusing to hire a physically handicapped person because the work would endanger his or her health
C. Refusing to hire a person with cancer as the employer’s health insurance rates would substantially increase
D. Refusing to hire the spouse of one of its present employees because they would work together

A

D. Refusing to hire the spouse of one of its present employees because they would work together

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7
Q

George publishes an advertisement for a position with his construction company. Heavy lifting is required. In his ad it states that he seeks a white male under age 35. This ad is considered:

A. Legal. An employer has the right to hire anyone he or she desires
B. Illegal, due to sex discrimination
C. Illegal due to both sex discrimination and age discrimination
D. Legal. He has advertised for heavy lifting so a white male under the age of 35 is perfect for the job.

A

C. Illegal due to both sex discrimination and age discrimination

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8
Q

During a job interview, the applicant informs the prospective employer that he will not be able to work on Saturdays due to his religious affiliation. The employer tells the prospective employee that, sometimes, work occurs on Saturday. In this situation, which of the following statements best describes the employer’s legal responsibilities?

A. The employer should hire the applicant to avoid a lawsuit
B. The employer may choose not to hire the applicant after first trying to accommodate the prospective employee’s religious obligations
C. The employer should not attempt to hire this individual due to his religious beliefs
D. The employer must comply with the applicant’s wishes since the law does not permit discrimination on the basis of religion.

A

B. The employer may choose not to hire the applicant after first trying to accommodate the prospective employee’s religious obligations

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9
Q

In interviewing several candidates for a position with his company, John Dobson asked each person several questions. Which of the following is the only legal questions he can ask?
A. Arrest records
B. Medical records
C. Birthdate
D. Union activities

A

B. Medical records

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10
Q

Which of the following is an acceptable hiring practice?

A. Hiring a veteran over a non-veteran
B. Hiring a non union employee over a union one
C. Hiring an American born person over a Mexican
D. Hiring a 30 year old over a 50 year old

A

A. Hiring a veteran over a non-veteran

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11
Q

If, John, an illegal alien, applies for a position with your company and he asks for help in legalizing his status, you should refer him to the:
A Internal Revenue Service
B. Social Security Administration
C. Employment Development Department
D. Franchise Tax Board

A

A Internal Revenue Service

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12
Q

Which department of the government is responsible for implementing the employment eligibility verification requirement in the Immigration Reform and Control Act and may require you to present I-9 forms for each employee that you have hired?
A. INS-Immigration & Naturalization Service
B. Employment Development Department
C. Internal Revenue Service
D. None of the above

A

A. INS-Immigration & Naturalization Service

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13
Q

The W-4 is used to:
A. Indicate the exact amount of FIT tax to withhold
B. Indicate the exact amount of FUTA tax to withhold
C. Indicate the exact amount of SDI tax to withhold
D. Indicate the exact amount of income tax to withhold

A

A. Indicate the exact amount of FIT tax to withhold

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14
Q

What is the purpose of a W-2 form?
A. For declaring income earned and taxes withheld
B. For declaring income taxes paid
C. For both IRS and Board of Equalization
D. For all non-employee earned income and taxes withheld

A

A. For declaring income earned and taxes withheld

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15
Q

Labor that is considered part-time is not subject to the same labor laws as full time employment. Which of the following is considered full time employment?

A. 20 or more hours per week
B. 32 or more hours/week
C. Only 40 or more hours a week
D. 28 hours or more/week

A

B

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16
Q

When you hire a sub contractor, as opposed to an employee, what must you do?

A. Require the subcontractor to complete a form W-9 on which the individual must
provide a social security number

B. if the subcontractor does not provide a taxpayer ID number, you must withhold 20% of the payment of income tax.

C. Both A and B

D. Neither A nor B, sub contractors pay their own taxes.

A

C

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17
Q

If you hire a tradesperson to subcontract work for time and material only for $400, and the person is not licensed, this is considered:
A. illegal
B. A statutory employee, and withholding taxes must be deducted.
C. Self employed are not subject to withholding
D. An independent agent and a 1099 needs to be given by the end of January of each year for work done the previous year

A

B

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18
Q

Which of these describes an independent agent as opposed to an employee?

A Person is licensed and supplies own tools
B. Person makes own hours and needs supervision
C. Person is not licensed but works for time and materials only
D. All of the above

A

A

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19
Q

Which of these describes an employee as opposed to an independent contractor?
A The employee works for an hourly wage and is supervised
B. The employee has payroll taxes taken out
C. The employee is supplied tools
D. All of the above

A

D

20
Q

When is a worker considered an employee rather than an independent contractor?

A. When the employer has the right to tell the worker to do certain work

B. When the employer has direct control over the work being performed

C. When the employee can make a profit or loss on the work

D. When he is paid by a company check

A

B

21
Q

An employer must file federal form 1099-MISC to report payments of _____ or more
per calendar year to persons not treated as employees (e.g. independent contractors) for services performed for the business.
A. $200
B. $300
C. $450
D $600

A

D

22
Q

Bob Smith, a contractor, hires Jim and Nancy and offers them $15 per hour to dig ditches. At the end of the year, Bob issues them a 1099 form, indicating the amount of money he paid them for the year. What should Bob know?
A. That he needs to obtain their social security numbers and report their income to theIRS

B. That he should contact the Social Security office and obtain their correct social security numbers

C. That his actions are illegal and the fine could cost him $100 per day per employee

D. That he needs to get their social security number and address of each before submitting t 1099 s

A

C

23
Q

An employee, whose regular rate is $10/hour, works 60 hours one week and
30 hours the next week. Based on a two-week payroll system, what are the gross wages due?
A.$700
B $900
C. $1000
D. $1500

A

C

24
Q

What should Ed, an employee, do if the employer requires him to work more than six consecutive days?

A Nothing, as long as the work is essential to the survival of the company

B. It is illegal and he should report it to the Labor Commissioner

C It is illegal and he should report it to the Contractors’ License Board

D. Nothing, if the employee wants his job, he should be willing to work when his employer requests it.

A

B

25
Q

A worker is not paid for his overtime. He then files a complaint against his employer with EDD. When the employer finds out that the employee filed the complaint, he fires the worker. Select the most correct statement:

A The employer can fire the employee for filing the complaint

B. The employer will be required to reinstate the employee with full back-pay and benefits, plus pay a fine of up to $1000

C The employer must pay a fine of $5000

D None of the above

A

B

26
Q

How old must a worker be to do heavy work in construction?
A 13
B. 14
C. 15
D. 16

A

D

27
Q

A contractor buys a construction firm from a person who is retiring. There is an existing collective bargaining agreement with a successor clause that is good for three years. As the new “owner,” is the contractor bound by the collective bargaining agreement?

A. No, the contractor never consented to the agreement
B. No, the successor clause is not binding for more than one year
C. No, successor clauses are illegal

D. Yes, the successor clause is binding on a successor for up to 3 years.

A

D

28
Q

Your employee has reached his limit of FICA contributions, what should you do as the employer?
A Decrease the deduction
B. Increase the deduction
C. There is no limit to this deduction
D. Cease deducting for FICA

A

D

29
Q

How may a new contractor with one employee obtain workers’ compensation insurance coverage?
A Obtain coverage from the Registrar of Contractors or be self insured with permission
B. Obtain coverage from the Department of Industrial Relations or by a self insurance policy with permission
C. Obtain coverage from a licensed insurance carrier and/or be self insured with permission
D. Workers’ compensation coverage is not necessary if there is only one employee

A

C

30
Q

When must a contractor obtain workers’ compensation insurance?

A. When a employee earns $600 or more in a calendar year
B. When an illegal alien is hired
C. Whenever one or more employees is hired
D. Whenever the contractor works

A

C

31
Q

If an owner builder decides to hire a person to help with building a house, who is responsible for workers’ compensation?

A No one, workers’ compensation is not necessary in this case
B. The employee
C. The owner-builder
D. The Building Department

A

C

32
Q

If a contractor hires a sub to do clean-up work, whose responsibility is it that the sub has workers’ compensation for his employees?

A The sub contractor
B. The prime contractor
C. No one, as workers compensation is not necessary for cleanup work
D. The State Fund

A

B

33
Q

Joe hires Pete to act as a sub-contractor on a project and the sub confirms that he has workers’ compensation. Joe asks Peter for a copy of his certificate of insurance. A few days later, works begins, but Pete has not yet given Joe a copy of his certificate. Worried that he might be liable for any injuries should Pete not have insurance, Joe should:

A Ask Pete again for the insurance certificate and tell him he has 7 days to
produce the policy or he must be fired

B. Fire Pete and replace him with a sub who has the insurance

C. Joe should add Pete and his employees to his policy, but charge them for each additional premium

D. None of the above

A

B

34
Q

If a worker is injured on the job and it is determined that the worker was under the influence of alcohol or drugs at the time of the accident, which of the following would be true ?

A. The worker would be covered by workers’ compensation
B. The worker would not be covered by workers’ compensation
C. The worker would be covered by State Disability
D. Employer would be liable no matter what

A

B

35
Q

Select the situation where an employer would be held liable for payment of workers’ compensation benefits to an injured employee?

A. When the worker is intoxicated at the work site
B. When the worker is injured due to the worker’s own willful misconduct
C. When the worker is not an employee, but an independent contractor
D. The employer is always liable unless he can demonstrate that the employee is not eligible for benefits

A

D

36
Q

When and where do contractors pay FUTA when the total amount is under $100?
A Every payday to the IRS
B. Every payday to the EDD
C. Quarterly to the EDD
D. Yearly to the IRS

A

D

37
Q

George owns a small construction company with 4 employees. In addition, his wife, Millie works 3 days a week as an office-helper. In this situation, which of the following is not subject to FUTA tax deductions?
A Severance and vacation pay
B. The wife’s salary
C. Commissions and bonuses
D. Sick pay

A

D

38
Q

When is health insurance required for employees?
A For employers with more than 5 employees
B. For employers with more than 50 employees
C. When the employees demand it
D. Never, it is the employer’s choice to offer this benefit

A

D

39
Q

When is health insurance required for employees?
A For employers with more than 5 employees
B. For employers with more than 50 employees
C. When the employees demand it
D. Never, it is the employer’s choice to offer this benefit

A

D

40
Q

Which of the following is NOT deducted from an employee’s paycheck?
A. Federal and state income tax
B.Unemployment tax
C. Social security tax
D. State disability tax

A

B

41
Q

Contractors who work in sales and use tax districts in California and purchase fixtures or materials are subject to what percentage of tax?

A 1%
B. A flat rate established by the State
C. A certain percentage based on supplies used at the job site and differs between tax districts
D There is no sales and use tax in California

A

C

42
Q

To whom do contractors report and pay sales tax?
A County Tax Collector
B. Internal Revenue Service
C. Board of Equalization
D. Franchise Tax Board

A

C

43
Q

In the event of a strike, what would happen to the unpaid wages due the striking employees?

A. Wages are withheld until work resumes
B. Wages are withheld until an agreement is negotiated
C. Wages are forfeited
D. Wages are due and payable on the next regular pay day

A

D

44
Q

A contractor is forced to terminate two of the company’s employees due to the economy. The contractor issues final paychecks which are returned by the bank for insufficient funds. Which of the following is true?

A. The employees must take the contractor to small claims court
B. The employer is liable for up to 30 days additional wages
C. The employer must pay a 25% payroll penalty to EDD
D. The employer must make the checks good as soon as possible

A

B

45
Q

Which Act established the right of workers to organize into unions and negotiate contracts?
A. Civil Rights Act of 1964
B. Civil Rights Act of 1972
C. Civil Rights Act of 1984
D. National Labor Relations Act of 1935

A

D

46
Q

Some counties have additional sales tax added to the State base rate. Which of the following is a correct statement.

A. This additional tax does not apply to contractors

B. You do not have to pay this tax if your home office is in another county

C. You may pay the tax charged in your county if the rate is lower than the county
where the materials were purchased

D. You must pay the additional tax in the county where the materials were purchased

A

D