Try Out or Payday? When Candidate Assessments Require Compensation

Hiring the right person often requires more than reviewing a resume and scheduling a traditional interview. California employers frequently ask candidates to complete skills assessments that demonstrate their ability to perform key job duties. Whether the role involves coding, customer service, food preparation, sales or skilled trades, a practical demonstration can provide valuable insight into a candidate’s qualifications.

California employers, however, should exercise caution when designing these assessments. While a legitimate skills test does not require compensation, an applicant’s participation can become compensable if the assessment crosses the line from evaluation to work.