Page | 1
CALIFORNIA STATE CONTRACTORS LICENSE
LAW AND BUSINESS TEST ACTUAL
QUESTIONS 2026 WITH VERIFIED ANSWERS.
1. How often must employees be paid? - correct answer-Twice
a month or every two weeks
2. If you fire an employee, when must you pay his or her unpaid
wages? - correct answer-Immediately
3. What are unlicensed subcontractors considered when
working on your job? - correct answer-Statutory employees.
This means you can be held accountable for federal and
state taxes that must be paid.
4. Where must employers report all newly hired employees? -
correct answer-New Hire Reporting Program within 20 days
5. Who is responsible for obtaining Worker's Compensation
Insurance? - correct answer-The employer. Businesses with
employees are rquired to carry Worker's Comp Insurance.
, Page | 2
6. What is the most valuable advice given to new employers? -
correct answer-File your taxes
7. Is maintaining a healthy and fair workplace required? -
correct answer-Yes. By law.
8. Federal law that prohibits employers from discriminating
against race, sex, color, or religion. - correct answer-Title 7
9. Federal law that prohibits employers from discriminating
against disabilities. - correct answer-American Disabilities
Act
10. Law the prevents discrimination against age - correct
answer-Age Discrimination Employment Act
11. Federal law that provides regulation on workdays. -
correct answer-Fair Labor Standards Act
, Page | 3
12. Federal law that preserves a qualified employee's position
for personal or family health which includes maternity and
paternity leave. - correct answer-Family and Medical Leave
Act
13. Who pays Federal Insurance Contributions Act, or FICA
Taxes? - correct answer-Both the employer and the
employee. This includes Social Security and Medicare.
14. Who pays Federal Unemployment Taxes, or FUTA. -
correct answer-The employer
15. Who pays State Unemployment Taxes, or U.I. - correct
answer-The employer
16. Who pays Employment Training Taxes, or E.T.T. - correct
answer-The employer
17. Who pays Federal and State Income Taxes - correct
answer-The employee
, Page | 4
18. Who pays for state disability insurance? - correct answer-
The employee
19. The basic hourly rate paid on public works jobs to a
majority of workers engaged in a particular craft. - correct
answer-Prevailing wages
20. Program responsible for enforcing California laws and
regulations for workplace safety. - correct answer-Cal OSHA
21. Program that protects workers and the public from safety
hazards. - correct answer-California Division of Occupational
Health, DOSH
22. What must employers establish, implement and maintain
in the workplace to establish a safe and healthy place to
work. - correct answer-I.I.P.P., Injury and Illness Prevention
Program
CALIFORNIA STATE CONTRACTORS LICENSE
LAW AND BUSINESS TEST ACTUAL
QUESTIONS 2026 WITH VERIFIED ANSWERS.
1. How often must employees be paid? - correct answer-Twice
a month or every two weeks
2. If you fire an employee, when must you pay his or her unpaid
wages? - correct answer-Immediately
3. What are unlicensed subcontractors considered when
working on your job? - correct answer-Statutory employees.
This means you can be held accountable for federal and
state taxes that must be paid.
4. Where must employers report all newly hired employees? -
correct answer-New Hire Reporting Program within 20 days
5. Who is responsible for obtaining Worker's Compensation
Insurance? - correct answer-The employer. Businesses with
employees are rquired to carry Worker's Comp Insurance.
, Page | 2
6. What is the most valuable advice given to new employers? -
correct answer-File your taxes
7. Is maintaining a healthy and fair workplace required? -
correct answer-Yes. By law.
8. Federal law that prohibits employers from discriminating
against race, sex, color, or religion. - correct answer-Title 7
9. Federal law that prohibits employers from discriminating
against disabilities. - correct answer-American Disabilities
Act
10. Law the prevents discrimination against age - correct
answer-Age Discrimination Employment Act
11. Federal law that provides regulation on workdays. -
correct answer-Fair Labor Standards Act
, Page | 3
12. Federal law that preserves a qualified employee's position
for personal or family health which includes maternity and
paternity leave. - correct answer-Family and Medical Leave
Act
13. Who pays Federal Insurance Contributions Act, or FICA
Taxes? - correct answer-Both the employer and the
employee. This includes Social Security and Medicare.
14. Who pays Federal Unemployment Taxes, or FUTA. -
correct answer-The employer
15. Who pays State Unemployment Taxes, or U.I. - correct
answer-The employer
16. Who pays Employment Training Taxes, or E.T.T. - correct
answer-The employer
17. Who pays Federal and State Income Taxes - correct
answer-The employee
, Page | 4
18. Who pays for state disability insurance? - correct answer-
The employee
19. The basic hourly rate paid on public works jobs to a
majority of workers engaged in a particular craft. - correct
answer-Prevailing wages
20. Program responsible for enforcing California laws and
regulations for workplace safety. - correct answer-Cal OSHA
21. Program that protects workers and the public from safety
hazards. - correct answer-California Division of Occupational
Health, DOSH
22. What must employers establish, implement and maintain
in the workplace to establish a safe and healthy place to
work. - correct answer-I.I.P.P., Injury and Illness Prevention
Program
