[HCEA] Hawaii Commercial Employment Agency Testing
Certification Review Guide
**Question 1. Under Hawaii Revised Statutes Chapter 373, which of the following is required to
obtain a Principal Agent license?**
A) A high school diploma
B) A minimum of five years’ experience as a hiring manager
C) A $5,000 surety bond
D) Proof of citizenship only
Answer: C
Explanation: HRS 373‑24 mandates that a Principal Agent post a surety bond of at least $5,000
to protect applicants and employers.
**Question 2. In the definition of “Employment Agency” under HRS 373, which activity is
expressly excluded?**
A) Placing temporary workers
B) Providing training services for a fee
C) Acting as a labor union representative
D) Charging a fee after placement of a permanent employee
Answer: C
Explanation: An employment agency is not a labor union; unions are governed by separate
statutes.
**Question 3. Which of the following fee structures is prohibited by HRS 373‑10?**
A. Charging an employer a percentage of the employee’s first-year salary
B. Requiring a job seeker to pay a “registration fee” before any placement
C. Billing a client only after the employee works a minimum of 30 days
D. Offering a discount for multiple hires from the same employer
Answer: B
Explanation: HRS 373‑10 forbids collecting fees from applicants prior to a successful placement.
,[HCEA] Hawaii Commercial Employment Agency Testing
Certification Review Guide
**Question 4. According to HAR Title 16, Chapter 108, how long must an agency retain
applicant files after the placement is completed?**
A) 12 months
B) 24 months
C) 36 months
D) Indefinitely
Answer: C
Explanation: HAR 16‑108‑6 requires agencies to keep applicant records for at least three years.
**Question 5. Which of the following advertising practices is required by HAR 16‑108‑4?**
A) Including the agency’s licensed name in every job posting
B. Using bold fonts to highlight salary ranges
C. Posting only on the agency’s website
D. Displaying testimonials from former applicants
Answer: A
Explanation: The rule mandates clear identification of the agency’s licensed name to avoid
deceptive advertising.
**Question 6. A Principal Agent discovers a branch office is charging applicants a “resume
preparation fee.” Which action is most appropriate under HAR 16‑108‑2?**
A) Ignore it if the branch meets its revenue targets
B) Issue a written corrective notice and require immediate cessation
C) Allow the fee if the branch obtains a separate license
D) Transfer the branch to a different city
Answer: B
,[HCEA] Hawaii Commercial Employment Agency Testing
Certification Review Guide
Explanation: The Principal Agent must supervise and correct any prohibited practice promptly.
**Question 7. Which element is NOT required for a valid agency‑applicant contract under
Hawaii contract law?**
A) Offer
B) Acceptance
C) Consideration
D) Notarization
Answer: D
Explanation: Notarization is not a legal element of contract formation; offer, acceptance, and
consideration are required.
**Question 8. An agency places a minor in a landscaping job that requires the use of a powered
mower. Which law is potentially violated?**
A) Hawaii Civil Rights Act
B) Child Labor Restrictions in HRS 372‑9
C) Hawaii Minimum Wage Law
D) Fair Credit Reporting Act
Answer: B
Explanation: HRS 372‑9 limits minors from hazardous occupations such as operating powered
equipment.
**Question 9. Which protected class is NOT recognized by the Hawaii Civil Rights
Commission?**
A) Age over 40
B) Sexual orientation
C) Marital status
, [HCEA] Hawaii Commercial Employment Agency Testing
Certification Review Guide
D) Genetic information
Answer: C
Explanation: While many states protect marital status, Hawaii’s statutes specifically list race,
color, sex, sexual orientation, gender identity, age, religion, disability, and genetic information,
but not marital status.
**Question 10. When calculating a placement fee for a permanent hire, the agency may base
the fee on which of the following?**
A) The applicant’s projected lifetime earnings
B) The employer’s annual profit margin
C) The applicant’s actual earnings during the first 90 days
D) The agency’s internal cost estimates
Answer: C
Explanation: HRS 373‑12 allows fees to be based on actual earnings earned by the placed
employee.
**Question 11. Which of the following best describes “fee‑splitting” as prohibited by
HRS 373‑15?**
A) Paying a referral fee to a former employee who referred a candidate
B) Sharing placement fees with a non‑licensed third party for recruitment services
C) Charging an employer a fee for each interview conducted
D) Offering a discount for bulk hires
Answer: B
Explanation: Fee‑splitting with unlicensed persons is prohibited to prevent unauthorized
recruitment activities.
**Question 12. Under HAR 16‑108‑5, which document must the Director approve before an
agency can use it with applicants?**
Certification Review Guide
**Question 1. Under Hawaii Revised Statutes Chapter 373, which of the following is required to
obtain a Principal Agent license?**
A) A high school diploma
B) A minimum of five years’ experience as a hiring manager
C) A $5,000 surety bond
D) Proof of citizenship only
Answer: C
Explanation: HRS 373‑24 mandates that a Principal Agent post a surety bond of at least $5,000
to protect applicants and employers.
**Question 2. In the definition of “Employment Agency” under HRS 373, which activity is
expressly excluded?**
A) Placing temporary workers
B) Providing training services for a fee
C) Acting as a labor union representative
D) Charging a fee after placement of a permanent employee
Answer: C
Explanation: An employment agency is not a labor union; unions are governed by separate
statutes.
**Question 3. Which of the following fee structures is prohibited by HRS 373‑10?**
A. Charging an employer a percentage of the employee’s first-year salary
B. Requiring a job seeker to pay a “registration fee” before any placement
C. Billing a client only after the employee works a minimum of 30 days
D. Offering a discount for multiple hires from the same employer
Answer: B
Explanation: HRS 373‑10 forbids collecting fees from applicants prior to a successful placement.
,[HCEA] Hawaii Commercial Employment Agency Testing
Certification Review Guide
**Question 4. According to HAR Title 16, Chapter 108, how long must an agency retain
applicant files after the placement is completed?**
A) 12 months
B) 24 months
C) 36 months
D) Indefinitely
Answer: C
Explanation: HAR 16‑108‑6 requires agencies to keep applicant records for at least three years.
**Question 5. Which of the following advertising practices is required by HAR 16‑108‑4?**
A) Including the agency’s licensed name in every job posting
B. Using bold fonts to highlight salary ranges
C. Posting only on the agency’s website
D. Displaying testimonials from former applicants
Answer: A
Explanation: The rule mandates clear identification of the agency’s licensed name to avoid
deceptive advertising.
**Question 6. A Principal Agent discovers a branch office is charging applicants a “resume
preparation fee.” Which action is most appropriate under HAR 16‑108‑2?**
A) Ignore it if the branch meets its revenue targets
B) Issue a written corrective notice and require immediate cessation
C) Allow the fee if the branch obtains a separate license
D) Transfer the branch to a different city
Answer: B
,[HCEA] Hawaii Commercial Employment Agency Testing
Certification Review Guide
Explanation: The Principal Agent must supervise and correct any prohibited practice promptly.
**Question 7. Which element is NOT required for a valid agency‑applicant contract under
Hawaii contract law?**
A) Offer
B) Acceptance
C) Consideration
D) Notarization
Answer: D
Explanation: Notarization is not a legal element of contract formation; offer, acceptance, and
consideration are required.
**Question 8. An agency places a minor in a landscaping job that requires the use of a powered
mower. Which law is potentially violated?**
A) Hawaii Civil Rights Act
B) Child Labor Restrictions in HRS 372‑9
C) Hawaii Minimum Wage Law
D) Fair Credit Reporting Act
Answer: B
Explanation: HRS 372‑9 limits minors from hazardous occupations such as operating powered
equipment.
**Question 9. Which protected class is NOT recognized by the Hawaii Civil Rights
Commission?**
A) Age over 40
B) Sexual orientation
C) Marital status
, [HCEA] Hawaii Commercial Employment Agency Testing
Certification Review Guide
D) Genetic information
Answer: C
Explanation: While many states protect marital status, Hawaii’s statutes specifically list race,
color, sex, sexual orientation, gender identity, age, religion, disability, and genetic information,
but not marital status.
**Question 10. When calculating a placement fee for a permanent hire, the agency may base
the fee on which of the following?**
A) The applicant’s projected lifetime earnings
B) The employer’s annual profit margin
C) The applicant’s actual earnings during the first 90 days
D) The agency’s internal cost estimates
Answer: C
Explanation: HRS 373‑12 allows fees to be based on actual earnings earned by the placed
employee.
**Question 11. Which of the following best describes “fee‑splitting” as prohibited by
HRS 373‑15?**
A) Paying a referral fee to a former employee who referred a candidate
B) Sharing placement fees with a non‑licensed third party for recruitment services
C) Charging an employer a fee for each interview conducted
D) Offering a discount for bulk hires
Answer: B
Explanation: Fee‑splitting with unlicensed persons is prohibited to prevent unauthorized
recruitment activities.
**Question 12. Under HAR 16‑108‑5, which document must the Director approve before an
agency can use it with applicants?**
