WGU D352
Employment and Labor Law
Final Exam — 2026/2027
Total Questions: 70
Domains: 10 (7 questions each)
Question Types: Multiple-Choice, Select-All-That-Apply, Scenario-Based
Testing Time: 120 minutes
Passing Score: 70–75% (49–53 correct)
Aligned With: WGU Competency Rubrics, SHRM Body of Competency and Knowledge
Instructions: Select the single best answer unless otherwise indicated. For Select-All-That-Apply (SATA)
questions, choose all correct options. Apply employment law principles, statutory analysis, and professional
judgment aligned with WGU competency standards and SHRM Body of Competency and Knowledge.
, WGU D352 Employment and Labor Law Final Exam — 2026/2027
Table of Contents
Table of Contents ...................................................................................................................................................... 2
Introduction .............................................................................................................................................................. 2
Domain 1: Employment Law Foundations (Q1–Q7) .......................................................................................... 3
Domain 2: Anti-Discrimination Law & Equal Employment Opportunity (Q8–Q14) ...................................... 4
Domain 3: Workplace Harassment & Hostile Environment (Q15–Q21) .......................................................... 6
Domain 4: Wage & Hour Regulations (Q22–Q28) ............................................................................................ 9
Domain 5: Employee Benefits & Leave Entitlements (Q29–Q35) ................................................................... 11
Domain 6: Labor Relations & Collective Bargaining (Q36–Q42) ....................................................................13
Domain 7: Workplace Privacy & Employee Monitoring (Q43–Q49) ............................................................... 15
Domain 8: Termination & Post-Employment Issues (Q50–Q56) .................................................................... 17
Domain 9: Occupational Safety & Health Compliance (Q57–Q63) .................................................................19
Domain 10: Scenario-Based Application (Q64–Q70) .......................................................................................21
Answer Key Summary ............................................................................................................................................ 25
References ............................................................................................................................................................... 26
Introduction
The WGU D352 Employment and Labor Law Final Exam is designed to assess a student’s comprehensive
understanding of federal employment law, labor relations, and workplace compliance as required by the
Western Governors University competency framework. This examination covers critical domains including
at-will employment doctrine, anti-discrimination statutes (Title VII, ADA, ADEA, EPA, GINA), workplace
harassment law, wage and hour regulations under the Fair Labor Standards Act, employee benefits and leave
entitlements (ERISA, COBRA, FMLA), labor relations and collective bargaining under the National Labor
Relations Act, workplace privacy and employee monitoring, termination and post-employment issues, and
occupational safety and health compliance under OSHA. Each question is aligned with the SHRM Body of
Competency and Knowledge (SHRM BoCK) to ensure practical relevance for HR professionals. The exam
includes scenario-based items requiring application of legal principles to real-world workplace situations,
reflecting the analytical rigor expected of WGU graduates in human resource management roles. Successful
completion demonstrates mastery of employment law concepts essential for ethical and legally compliant HR
decision-making in diverse organizational contexts.
2
, WGU D352 Employment and Labor Law Final Exam — 2026/2027
Domain 1: Employment Law Foundations (Q1–Q7)
This domain covers the At-Will Employment Doctrine, Public Policy Exceptions, Implied Contract
Exceptions, Covenant of Good Faith and Fair Dealing, and Employment-at-Will Modifications.
1. Under the traditional employment-at-will doctrine, which of the following statements is
most accurate?
A. An employer may terminate an employee only for just cause
B. An employer may terminate an employee at any time, for any reason or no reason, without limitation
C. An employer may terminate an employee at any time, for any reason or no reason, subject to certain
exceptions
D. An employer must provide two weeks’ notice before terminating an at-will employee
Correct Answer: C. An employer may terminate an employee at any time, for any reason or no
reason, subject to certain exceptions
Rationale: The employment-at-will doctrine, originating from common law, allows either the employer or
employee to terminate the employment relationship at any time, for any reason or no reason. However,
this doctrine is not absolute and has been significantly modified by statutory protections (e.g., Title VII,
ADA, ADEA), public policy exceptions, implied contract theory, and the covenant of good faith and fair
dealing recognized in some jurisdictions. Answer C accurately reflects the modern state of at-will
employment with its recognized limitations.
2. An employee is terminated after refusing to commit perjury in a court proceeding at the
direction of their supervisor. Under which exception to the employment-at-will doctrine
would the employee most likely prevail in a wrongful discharge claim?
A. Implied contract exception
B. Public policy exception
C. Covenant of good faith and fair dealing
D. Promissory estoppel
Correct Answer: B. Public policy exception
Rationale: The public policy exception to at-will employment prohibits employers from terminating
employees for reasons that contravene a clear mandate of public policy. Refusing to commit perjury—a
criminal act—is protected because the law has a strong public policy against false testimony under oath.
Courts in the majority of states recognize this exception when the employee’s refusal to break the law is the
motivating factor behind the termination. The implied contract and covenant of good faith exceptions
would not be the primary basis for this claim.
3. Which of the following is the most commonly recognized basis for an implied contract
exception to employment-at-will?
A. The employee’s subjective belief that employment was permanent
B. Written assurances in an employee handbook or policy manual indicating termination would occur
only for cause
C. The employee’s length of service exceeding ten years
D. Oral statements made by a coworker about job security
Correct Answer: B. Written assurances in an employee handbook or policy manual indicating
termination would occur only for cause
Rationale: Courts have recognized that provisions in employee handbooks, policy manuals, or other
written employer communications can create an implied contract when they contain language promising
termination only for cause, progressive discipline procedures, or other assurances of job security. In
Toussaint v. Blue Cross & Blue Shield of Michigan (1980), the Michigan Supreme Court held that an
employee handbook could create an implied contract modifying the at-will relationship. The employee’s
subjective belief, length of service alone, or casual coworker statements are insufficient to establish an
implied contract.
4. The covenant of good faith and fair dealing as an exception to at-will employment has been
adopted by which of the following?
A. All fifty states as a statutory mandate
B. Only federal courts applying common law
C. A minority of states, most notably Montana through its Wrongful Discharge from Employment Act
D. No U.S. jurisdiction; it exists only in contract law theory
3
Employment and Labor Law
Final Exam — 2026/2027
Total Questions: 70
Domains: 10 (7 questions each)
Question Types: Multiple-Choice, Select-All-That-Apply, Scenario-Based
Testing Time: 120 minutes
Passing Score: 70–75% (49–53 correct)
Aligned With: WGU Competency Rubrics, SHRM Body of Competency and Knowledge
Instructions: Select the single best answer unless otherwise indicated. For Select-All-That-Apply (SATA)
questions, choose all correct options. Apply employment law principles, statutory analysis, and professional
judgment aligned with WGU competency standards and SHRM Body of Competency and Knowledge.
, WGU D352 Employment and Labor Law Final Exam — 2026/2027
Table of Contents
Table of Contents ...................................................................................................................................................... 2
Introduction .............................................................................................................................................................. 2
Domain 1: Employment Law Foundations (Q1–Q7) .......................................................................................... 3
Domain 2: Anti-Discrimination Law & Equal Employment Opportunity (Q8–Q14) ...................................... 4
Domain 3: Workplace Harassment & Hostile Environment (Q15–Q21) .......................................................... 6
Domain 4: Wage & Hour Regulations (Q22–Q28) ............................................................................................ 9
Domain 5: Employee Benefits & Leave Entitlements (Q29–Q35) ................................................................... 11
Domain 6: Labor Relations & Collective Bargaining (Q36–Q42) ....................................................................13
Domain 7: Workplace Privacy & Employee Monitoring (Q43–Q49) ............................................................... 15
Domain 8: Termination & Post-Employment Issues (Q50–Q56) .................................................................... 17
Domain 9: Occupational Safety & Health Compliance (Q57–Q63) .................................................................19
Domain 10: Scenario-Based Application (Q64–Q70) .......................................................................................21
Answer Key Summary ............................................................................................................................................ 25
References ............................................................................................................................................................... 26
Introduction
The WGU D352 Employment and Labor Law Final Exam is designed to assess a student’s comprehensive
understanding of federal employment law, labor relations, and workplace compliance as required by the
Western Governors University competency framework. This examination covers critical domains including
at-will employment doctrine, anti-discrimination statutes (Title VII, ADA, ADEA, EPA, GINA), workplace
harassment law, wage and hour regulations under the Fair Labor Standards Act, employee benefits and leave
entitlements (ERISA, COBRA, FMLA), labor relations and collective bargaining under the National Labor
Relations Act, workplace privacy and employee monitoring, termination and post-employment issues, and
occupational safety and health compliance under OSHA. Each question is aligned with the SHRM Body of
Competency and Knowledge (SHRM BoCK) to ensure practical relevance for HR professionals. The exam
includes scenario-based items requiring application of legal principles to real-world workplace situations,
reflecting the analytical rigor expected of WGU graduates in human resource management roles. Successful
completion demonstrates mastery of employment law concepts essential for ethical and legally compliant HR
decision-making in diverse organizational contexts.
2
, WGU D352 Employment and Labor Law Final Exam — 2026/2027
Domain 1: Employment Law Foundations (Q1–Q7)
This domain covers the At-Will Employment Doctrine, Public Policy Exceptions, Implied Contract
Exceptions, Covenant of Good Faith and Fair Dealing, and Employment-at-Will Modifications.
1. Under the traditional employment-at-will doctrine, which of the following statements is
most accurate?
A. An employer may terminate an employee only for just cause
B. An employer may terminate an employee at any time, for any reason or no reason, without limitation
C. An employer may terminate an employee at any time, for any reason or no reason, subject to certain
exceptions
D. An employer must provide two weeks’ notice before terminating an at-will employee
Correct Answer: C. An employer may terminate an employee at any time, for any reason or no
reason, subject to certain exceptions
Rationale: The employment-at-will doctrine, originating from common law, allows either the employer or
employee to terminate the employment relationship at any time, for any reason or no reason. However,
this doctrine is not absolute and has been significantly modified by statutory protections (e.g., Title VII,
ADA, ADEA), public policy exceptions, implied contract theory, and the covenant of good faith and fair
dealing recognized in some jurisdictions. Answer C accurately reflects the modern state of at-will
employment with its recognized limitations.
2. An employee is terminated after refusing to commit perjury in a court proceeding at the
direction of their supervisor. Under which exception to the employment-at-will doctrine
would the employee most likely prevail in a wrongful discharge claim?
A. Implied contract exception
B. Public policy exception
C. Covenant of good faith and fair dealing
D. Promissory estoppel
Correct Answer: B. Public policy exception
Rationale: The public policy exception to at-will employment prohibits employers from terminating
employees for reasons that contravene a clear mandate of public policy. Refusing to commit perjury—a
criminal act—is protected because the law has a strong public policy against false testimony under oath.
Courts in the majority of states recognize this exception when the employee’s refusal to break the law is the
motivating factor behind the termination. The implied contract and covenant of good faith exceptions
would not be the primary basis for this claim.
3. Which of the following is the most commonly recognized basis for an implied contract
exception to employment-at-will?
A. The employee’s subjective belief that employment was permanent
B. Written assurances in an employee handbook or policy manual indicating termination would occur
only for cause
C. The employee’s length of service exceeding ten years
D. Oral statements made by a coworker about job security
Correct Answer: B. Written assurances in an employee handbook or policy manual indicating
termination would occur only for cause
Rationale: Courts have recognized that provisions in employee handbooks, policy manuals, or other
written employer communications can create an implied contract when they contain language promising
termination only for cause, progressive discipline procedures, or other assurances of job security. In
Toussaint v. Blue Cross & Blue Shield of Michigan (1980), the Michigan Supreme Court held that an
employee handbook could create an implied contract modifying the at-will relationship. The employee’s
subjective belief, length of service alone, or casual coworker statements are insufficient to establish an
implied contract.
4. The covenant of good faith and fair dealing as an exception to at-will employment has been
adopted by which of the following?
A. All fifty states as a statutory mandate
B. Only federal courts applying common law
C. A minority of states, most notably Montana through its Wrongful Discharge from Employment Act
D. No U.S. jurisdiction; it exists only in contract law theory
3
