Question 1

Are non-compete agreements enforceable in California?

Accepted Answer

No. California Business & Professions Code § 16600 voids virtually all non-compete agreements. As of 2024, SB 699 extends this prohibition to out-of-state non-competes applied to California workers, and AB 1076 requires employers to notify employees that prior non-competes are void. The only exceptions are in connection with the sale of a business (§ 16601), partnership dissolution (§ 16602), or LLC dissolution (§ 16602.5). Our templates automatically exclude non-compete provisions and warn you if you're generating a non-compete contract.

Question 2

What is the ABC test under AB 5, and does it affect my contractor agreements?

Accepted Answer

California's AB 5 (Labor Code § 2775) presumes all workers are employees unless the hiring entity proves three things: (A) the worker is free from control, (B) the work is outside the company's usual business, and (C) the worker has an independently established trade. Our contractor and freelance templates are structured to support all three prongs. Some professions qualify for exemptions and use the older Borello test instead.

Question 3

What are the security deposit limits for California rental agreements?

Accepted Answer

As of July 1, 2024, California limits security deposits to one month's rent for all residential tenancies — whether furnished or unfurnished. The deposit must be returned within 21 days of move-out with an itemized statement of deductions. Our lease templates automatically include these limits and required disclosures.

Question 4

Do I need CCPA/CPRA clauses in my California contracts?

Accepted Answer

If your business collects personal information of California consumers and meets certain thresholds (annual gross revenue >$25M, buys/sells data of 100K+ consumers, or derives 50%+ revenue from selling personal information), CCPA/CPRA compliance is mandatory. Our templates include CCPA/CPRA provisions where applicable, including service provider terms, data processing restrictions, and consumer rights cooperation.

Question 5

What makes California employment agreements different from other states?

Accepted Answer

California has uniquely strong employee protections: (1) daily overtime after 8 hours (not just weekly), (2) mandatory meal and rest breaks with premium pay for violations, (3) no non-competes, (4) broader anti-discrimination protections under FEHA, (5) mandatory paid sick leave, (6) salary history inquiry prohibition, and (7) pay transparency requirements. Our employment templates include all of these California-specific provisions.

Question 6

What is the Silenced No More Act and how does it affect NDAs?

Accepted Answer

SB 331 (the Silenced No More Act, effective 2022) prohibits NDAs and settlement agreements from preventing disclosure of information about unlawful workplace conduct — including harassment, discrimination, and retaliation across ALL protected categories. Our NDA templates automatically include the required carveouts for government reporting, whistleblowing, and testimony about workplace misconduct.

Question 7

Are California contracts with arbitration clauses enforceable?

Accepted Answer

Yes, but arbitration clauses in California must meet the Armendariz requirements: (1) a neutral arbitrator, (2) adequate discovery rights, (3) a written decision with findings, (4) all remedies available in court must be available, and (5) the employer/drafter must pay all arbitration-specific costs. Clauses that fail any of these factors may be found unconscionable and struck down. Our templates structure arbitration provisions to meet these requirements.

California Contract Templates Built for the Golden State's Unique Laws

Built for California law

Available contract types

Non-Disclosure Agreement

Freelance Contract

Lease Agreement

Service Agreement

Employment Agreement

Independent Contractor Agreement

Consulting Agreement

Partnership Agreement

Non-Compete/Non-Disclosure Agreement

Licensing Agreement

Compliance at a glance

Frequently asked questions

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