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Independent Contractor Agreement/States/California

California Independent Contractor Agreement

Generate a comprehensive independent contractor agreement customized for California law, compliant with the California Assembly Bill 5 (AB5) — ABC Test.

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Governing Statute

California Assembly Bill 5 (AB5) — ABC Test

Cal. Lab. Code § 2775 et seq.

Why You Need One

An independent contractor agreement protects your business from worker misclassification claims in California, clearly defines IP ownership, and establishes the terms of the working relationship.

State Requirements

California contractor classification requirements

Key requirements for properly classifying independent contractors in California.

Applies the strict ABC test under AB5 (Cal. Lab. Code § 2775): contractor must be (A) free from control, (B) performing work outside the company's usual business, and (C) engaged in an independently established trade
Written agreement alone is insufficient — the actual working relationship must satisfy all three prongs of the ABC test
Must comply with Proposition 22 exemptions for app-based transportation and delivery workers
Certain professions have exemptions under AB5 (lawyers, doctors, accountants, engineers, etc.) and revert to the Borello test
Must provide Form 1099-NEC and comply with California Franchise Tax Board reporting

State Highlights

What makes California unique

Notable features of California's worker classification laws that may affect your contractor agreement.

AB5 imposes one of the strictest worker classification tests in the country — the ABC test presumes workers are employees unless all three prongs are satisfied

Non-compete agreements are virtually unenforceable under Cal. Bus. & Prof. Code § 16600

Proposition 22 created specific exemptions for gig economy workers

Misclassification penalties include back wages, benefits, penalties, and potential criminal liability

How it works

Three simple steps

1

Answer Questions

Fill out a guided questionnaire about your California contractor engagement, compensation, and terms.

2

AI Generates

Our AI creates a comprehensive contractor agreement compliant with California worker classification law.

3

Download & Review

Download as a Word document. Edit inline or in your preferred word processor.

Ready to create your California contractor agreement?

Generate a comprehensive, California-specific independent contractor agreement in minutes.

pactdraft.ai is not a law firm and does not provide legal advice.

pactdraft.ai is not a law firm and does not provide legal advice.

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