Nevada Business & Law — Section 6: Labor, Payroll & HR
Use your NASCLA Contractor’s Guide — Nevada Edition. Tab and highlight definitions, duties, forms, timelines, and who is responsible. PSI loves questions about: pay frequency, final pay, record retention, workers’ compensation, employee vs independent contractor, required posters/notices, new-hire reporting, I-9/W-4/W-2, overtime, certified payroll (public works), and harassment/EEO basics.
1) Hiring & Onboarding Documents & deadlines
New-Hire Packets
- I-9 employment eligibility (retain per rule; no photocopy substitutions unless policy).
- W-4 federal withholding; state forms if applicable.
- Direct deposit, emergency contacts, policy acknowledgments.
- New-hire reporting to the state within required days of hire.
Classifying Workers
- Employee vs. Independent Contractor: control, tools, schedule, risk of profit/loss, exclusivity.
- Misclassification ⇒ tax, wage, and WC liabilities.
- Subcontractors must provide WC certificates if they have employees.
2) Wages, Overtime & Pay Practices Payroll rules
Pay Frequency
- Paydays must be regular and published to employees.
- Track hours worked, breaks, and overtime eligibility.
Overtime
- Know non-exempt vs exempt roles; overtime applies to non-exempt.
- Daily/weekly OT rules—highlight the chart in your book.
Final Pay
- Deadlines differ for voluntary quit vs involuntary termination.
- Include earned wages and approved expense reimbursements.
3) Required Posters & Notices Visibility & compliance
- Post federal and Nevada labor notices where employees gather (break room, trailer).
- Keep WC posting and carrier info accessible.
- Maintain harassment/EEO notices and complaint channels.
4) Workers’ Compensation (WC) Coverage & proof
Coverage
- Employees must be covered; verify subcontractors’ WC or treat their workers as your own for WC purposes.
- Penalties for non-coverage can include fines and stop-work orders.
Administration
- Post WC info; keep first report of injury procedures handy.
- Audit ready: payroll classes, certificates, and experience mod history.
5) Payroll Records & Retention What to keep
- Timecards, wage rates, job codes, deductions, fringe details, and certified payroll (public works).
- Retain payroll and personnel files for the durations stated in your book—highlight each duration.
- Secure storage for I-9s and medical records (separate from general personnel files).
6) Benefits, Leaves & Protected Rights Basics
- Know basics of protected leave concepts and when documentation is allowed.
- Anti-retaliation rules: do not punish workers for raising safety or wage concerns.
- Maintain harassment-free workplaces; train supervisors on reporting.
7) Public Works & Prevailing Wage (Overview) Tie-in to Section 8
- Projects may require prevailing wage, certified payroll, and fringe tracking.
- Apprentice ratios/registration and classification correctness are commonly tested.
- File certified payrolls on time; keep backup (timecards, subs’ certs).
8) Termination, Discipline & Documentation Clean records
- Use written documentation for performance issues; apply policies consistently.
- At termination: compute final pay by the correct deadline; collect company property; update access.
- Keep separation checklists; note if rehire eligible.
Practice Exam — 60 Questions Answers & brief explanations under each
1. New-hire reporting generally must be completed:
- Before interview
- Within the required days after hire
- Only at year-end
- Never
Answer
B — Mark the deadline in your book.
2. Which form verifies employment eligibility?
- W-4
- I-9
- W-2
- 1099-NEC
Answer
B — I-9 with required supporting docs.
3. A worker who sets their own schedule, uses their own tools, and bears profit/loss is most likely:
- Employee
- Independent contractor
- Intern
- Volunteer
Answer
B — Control & risk indicators suggest IC.
4. Misclassifying employees as independent contractors can lead to:
- No impact
- Tax, wage, and WC liabilities
- Free insurance
- Faster permits
Answer
B — Multiple enforcement risks.
5. Non-exempt employees must receive overtime based on:
- Flat salary only
- Daily/weekly overtime rules in the book
- Owner’s preference
- Project size
Answer
B — Highlight the OT chart.
6. Final wages after an involuntary termination are due:
- Whenever payroll runs
- By the deadline for terminations noted in your book
- At year-end
- After warranty
Answer
B — Timing differs by reason of separation.
7. Certified payrolls are typically required on:
- Public works projects
- Small residential projects only
- Design-build always
- Service contracts only
Answer
A — Public projects with prevailing wage.
8. Which document establishes tax withholding elections?
- I-9
- W-4
- OSHA 300
- COI
Answer
B — W-4 controls federal withholding.
9. Subcontractors with employees must provide:
- Safety manual only
- Workers’ compensation certificates
- Vehicle registration
- Lien waivers
Answer
B — Verify WC coverage upstream.
10. Payroll records should include:
- Only names
- Hours, wage rates, job codes, deductions
- Project photos
- Marketing flyers
Answer
B — Core payroll documentation.
11. Timecards are most critical because they:
- Set bid day
- Prove hours worked for wages/OT and certified payroll
- Replace contracts
- Handle taxes directly
Answer
B — Source records for pay accuracy.
12. Posting required labor notices must be done:
- At the owner’s house
- At conspicuous employee areas
- On social media
- Only in payroll office
Answer
B — Break room/trailer postings.
13. For I-9 storage, best practice is to:
- Keep with supervisor
- Store securely; keep separate from general personnel files
- Hand to vendor
- Throw away annually
Answer
B — Confidential and separate.
14. A non-exempt employee works unauthorized OT. The employer should:
- Refuse to pay
- Pay required OT and discipline for policy violation
- Convert to comp time automatically
- Ignore
Answer
B — Pay first; manage behavior separately.
15. An “experience mod” in WC affects:
- Bonding
- WC premium cost based on loss history
- Payroll taxes
- Lien rights
Answer
B — Loss experience multiplier.
16. Which item belongs in a public-works payroll package?
- As-builts
- Certified payroll report and fringe details
- Shop drawings
- Warranty book
Answer
B — Prevailing wage compliance.
17. An employee complaint about unpaid OT should be met with:
- Retaliation
- Investigation and correction; no retaliation
- Silence
- Termination only
Answer
B — Anti-retaliation applies.
18. Independent contractor pay is typically reported on:
- W-2
- 1099-NEC
- W-4
- I-9 only
Answer
B — 1099-NEC for non-employee comp.
19. A WC posting must include:
- Owner’s photo
- Carrier/claim reporting information
- Architect logo
- Bid date
Answer
B — Employees need claim info.
20. If a sub lacks WC coverage, the GC should:
- Proceed
- Hold award until coverage is in place
- Buy them coffee
- Ignore
Answer
B — Enforce contract/WC compliance.
21. Which is a required payroll record?
- Employee’s favorite team
- Daily/weekly hours worked
- Paint color
- Bid alternate
Answer
B — Hours drive wages/OT.
22. Final pay must include:
- Only salary
- All earned wages and authorized reimbursements
- Future bonuses
- Nothing
Answer
B — Pay what is due at separation.
23. A jobsite trailer should display:
- Vacation photos
- Required labor posters and WC information
- Blueprints only
- Marketing flyers
Answer
B — Poster compliance.
24. Which is not a safe place to store medical records?
- Separate, limited-access file
- Unlocked desk drawer in open office
- Secured HR system
- Locked cabinet with controlled keys
Answer
B — Keep confidential and separate.
25. Daily break compliance is mostly about:
- Tax rate
- Hours/rest periods depending on rules highlighted
- Lien rights
- Bonds
Answer
B — Follow break/rest rules.
26. A harassment complaint must be:
- Ignored
- Investigated promptly; no retaliation
- Posted online
- Sent to architect
Answer
B — EEO fundamentals.
27. Employers should track fringe benefits on prevailing wage because:
- It looks nice
- Fringes can satisfy part of the wage requirement
- It replaces payroll
- It waives OT
Answer
B — Wage + fringe must meet the rate.
28. If a worker refuses to sign a timecard, the supervisor should:
- Discard hours
- Document hours and refusal; pay correctly
- Withhold pay
- Call the lender
Answer
B — Document and pay for hours worked.
29. Which file typically shouldn’t include I-9s?
- I-9 binder
- General personnel file
- Separate secure digital folder
- Locked cabinet I-9 section
Answer
B — Keep I-9s separate.
30. Who is responsible for accurate certified payrolls?
- Designer
- Prime/GC and their subs for their own workers
- Lender only
- Owner only
Answer
B — Each employer certifies its payroll.
31. If an employee quits, final pay timing is:
- Same as involuntary termination
- Per the “voluntary quit” deadline in your book
- Any time next month
- Year-end
Answer
B — The deadline differs—highlight it.
32. Overtime eligibility depends on:
- Job title only
- Duties and salary tests; most field roles are non-exempt
- Owner’s decision
- Vehicle color
Answer
B — Duties + pay level tests.
33. A WC audit discrepancy often comes from:
- Perfect coding
- Misclassified labor and uninsured subs
- Too many posters
- Low payroll
Answer
B — Verify classifications and certs.
34. Meal/rest violations typically require:
- No action
- Premium pay/penalties per rules
- Safety audit
- Bond claim
Answer
B — Check your book’s penalty language.
35. Pay stubs should show:
- Only net pay
- Gross, deductions, net, and hours/rates as required
- Owner’s photo
- Bond rider
Answer
B — Transparency and compliance.
36. If an apprentice is used on public work:
- No records
- Verify registration, ratios, and pay correctly
- Use helper rates
- Skip fringe
Answer
B — Follow apprenticeship rules.
37. The best way to avoid payroll errors is:
- Manual sticky notes
- Written procedures, review, and reconciliations each payroll
- Ignore edits
- Pay cash
Answer
B — Controls prevent mistakes.
38. Which document is issued at year-end to employees?
- W-2
- 1099-NEC
- W-4
- I-9
Answer
A — W-2 for employees.
39. Which document is provided to non-employee service providers at year-end?
- W-2
- 1099-NEC
- W-4
- I-9
Answer
B — 1099-NEC for independent contractors.
40. A worker complains about safety, then is fired. This raises:
- No issue
- Potential retaliation claim
- Bond claim
- Prevailing wage dispute only
Answer
B — Protect whistleblowers; document reasons.
41. Deductions from pay must be:
- Any the employer wants
- Lawful and authorized
- Only taxes
- Always cash shortages
Answer
B — Get written authorization where required.
42. If a field employee forgets to clock out, payroll should:
- Set hours to zero
- Use supervisor verification and correct hours
- Delay payment indefinitely
- Ignore
Answer
B — Pay for hours worked.
43. “Exempt” status most closely refers to exemption from:
- Income tax
- Overtime rules (if duties/salary tests are met)
- WC
- Harassment laws
Answer
B — Exempt from OT, not taxes.
44. For travel time, the safest approach is to:
- Never pay
- Follow rules for compensable travel and document policy
- Let crew decide
- Use per diem only
Answer
B — Compensability varies; follow the book.
45. When a worker changes job classification mid-day on public work:
- Use the lowest rate
- Track hours by classification and pay applicable rates
- No change
- Average weekly
Answer
B — Split codes correctly.
46. To prove OT was paid, keep:
- Nothing
- Time records, payroll reports, and signed checks/stubs
- Only tax returns
- Only photos
Answer
B — Documentation is key.
47. If a crew works through a required meal period due to emergency:
- No pay
- Pay required premium/OT and document reason
- Charge to owner
- Ignore
Answer
B — Follow penalty/premium rules.
48. A “no-retaliation” statement should appear in:
- Bidding docs
- Employee handbook and policy acknowledgments
- Plans/specs
- Shop drawings
Answer
B — Core HR policy.
49. The best control to catch payroll fraud is:
- One person does everything
- Segregation of duties and independent review
- No review
- Cash pay
Answer
B — Separate timekeeping, approval, processing.
50. A worker paid salary is automatically exempt:
- True
- False — duties and salary tests must both be met
- Only on Fridays
- If GC says so
Answer
B — Salary alone isn’t enough.
51. Independent contractors typically provide:
- Own tools/equipment and carry WC/GL as applicable
- Only timecards
- Nothing
- Paid vacation
Answer
A — Business-to-business indicators.
52. For PTO accrual payouts at separation, use:
- Whatever
- Company policy/contract and applicable law
- Verbal rules
- Vendor guide
Answer
B — Follow policy + law.
53. If a worker alleges wage theft, the company should:
- Threaten them
- Investigate, correct if needed, and prohibit retaliation
- Delete records
- Ignore
Answer
B — Document findings and fix.
54. The safest way to prove delivery of pay stubs is:
- None
- Maintain system logs or signed acknowledgments
- Verbal statement
- Text message
Answer
B — Keep distribution proof.
55. If a supervisor edits time, best practice is to:
- Hide it
- Keep an audit trail and employee acknowledgment of corrections
- Delete original
- Round away OT
Answer
B — Transparency and controls.
56. Which is not appropriate to keep in a personnel file?
- Application/performance reviews
- I-9s (store separately)
- Training certs
- Discipline notes
Answer
B — Keep I-9s separate/secure.
57. When paying piece-rate, employers must:
- Ignore hours
- Ensure minimum wage and applicable OT are met
- Skip breaks
- Use day rates only
Answer
B — Piece-rate still must meet wage/OT rules.
58. A prevailing-wage “conformance” is a request to:
- Change contract price
- Add a classification/rate not listed when necessary
- Remove payroll
- Waive WC
Answer
B — To pay proper rate for actual work.
59. If a mistake underpays wages, the employer should:
- Wait for audit
- Pay make-up wages promptly and adjust records
- Ignore
- Charge PTO
Answer
B — Cure underpayments quickly.
60. The best checklist for payroll compliance is to verify, each cycle:
- Snacks
- Hours, rates, OT, deductions, approvals, and certified payroll if required
- Vehicle gas
- Bid bonds
Answer
B — Repeatable control list.