CSLB Law and Business: Employment Requirements
Section 3 of CSLB’s Law and Business study guide · about 20% of the exam
115 questions across every section on the 3½-hour clock, with a score for employment so you know where you stand.
Free employment drillBy what date must an employer furnish Form W-2 to each employee for wages paid during the previous calendar year?
Employment Requirements on the Law and Business exam
Hiring and documents, employees versus independent contractors, wage and hour rules, payroll and payroll taxes, and the records you must keep.
- Share of the exam
- About 20% (CSLB study guide); 23 of the 115 questions in our practice exam
- CSLB’s topics
- Hiring employees · Supervising and training employees · Evaluation and record-keeping · Payroll
- Our drill
- 10 questions from 78 employment questions, untimed, an explanation after every answer; one free attempt, unlimited with a pass
What employment questions test
- Hiring: Form I-9, the W-4 and DE 4, new-hire reporting to the EDD, and the line between an employee and an independent contractor in California
- Wage and hour: daily and weekly overtime, double time, meal and rest periods, final paychecks and itemized wage statements
- Payroll: gross-to-net calculations, federal and state withholding, Social Security and Medicare, unemployment insurance and state disability insurance, and when payroll taxes are deposited
- Supervising and training: anti-harassment and anti-discrimination duties, apprentices, and safety training
- Evaluation and record-keeping: personnel and payroll records, how long to keep them, and the posters and notices employers display
Sit the full exam under the real clock
115 questions across every section on the 3½-hour clock, with a score for employment so you know where you stand.
Free employment drillHow to study it
- This is one of the two largest sections. Give it a fifth of your study time.
- Work at least ten overtime and payroll calculations by hand. California’s daily overtime rule (over 8 hours in a day) is where most candidates lose points.
- Read the EDD’s California Employer’s Guide (DE 44) for the deadlines: new-hire reports, deposits and annual forms.
Common questions
How much of the Law and Business exam is employment law?
About 20%, according to CSLB’s study guide. Only Contract Requirements and Execution (21%) is larger.
Does the exam use California or federal employment rules?
Both. Overtime, meal and rest periods and final pay follow the California Labor Code, which is stricter than federal law. Federal income tax withholding, Social Security, Medicare and Form I-9 follow federal rules.
115 questions across every section on the 3½-hour clock, with a score for employment so you know where you stand.
Free employment drillThe other Law and Business sections
Section topics and weight from CSLB study guide: Law and Business (13E-LAW, 03-2026), checked November 2026.
Original independent practice questions written to CSLB’s published study guide outline. Not affiliated with or endorsed by the Contractors State License Board (CSLB) or PSI.