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Independent Contractor Agreement for California

Generate a independent contractor agreement that complies with California law β€” with 3 mandatory clauses and 7 compliance checks built in.

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Key legal considerations

You are generating a California independent contractor agreement. California's AB 5 (Lab. Code Β§ 2775) uses the strict ABC test β€” the hiring entity must prove ALL three prongs to classify a worker as an independent contractor. Do NOT include non-compete clauses (void under B&P Β§ 16600). The contractor must control how they perform work, the services must be outside the company's usual business, and the contractor must have an independently established trade. Certain professions have exemptions (referral to Borello test) β€” check Cal. Lab. Code Β§ 2778 for the list.

What's required

Mandatory clauses for a valid independent contractor agreement under California law.

  • AB 5 ABC Test Acknowledgment

    Cal. Lab. Code Β§ 2775 (AB 5)

  • No Employee Benefits

    Cal. Lab. Code Β§ 2775 et seq.

  • Independent Contractor Status

    IRS 20-factor test; IRC Β§ 3401

What's prohibited

Terms and provisions that are void or unenforceable under California law.

  • Provisions requiring specific work hours, location, or methods

    Under the AB 5 ABC test (prong A), the contractor must be free from the hiring entity's control and direction in performing work. Contract terms dictating how, when, or where work is performed undermine independent contractor status.

    Cal. Lab. Code Β§ 2775 (AB 5, prong A)

Legal references

Key statutes and regulations that govern independent contractor agreements in California.

  • Assembly Bill 5 (AB 5)

    Cal. Lab. Code Β§ 2775 et seq.

    ABC test for independent contractor classification in California.

  • Proposition 22 (if applicable)

    Cal. Bus. & Prof. Code Β§ 7448 et seq.

    Exempts app-based transportation and delivery companies from AB 5, classifying their drivers as independent contractors with certain benefits.

  • IRS Independent Contractor Guidelines

    IRS Publication 15-A

    IRS guidelines for determining worker classification as employee vs independent contractor.

    View β†’

Compliance checklist

Automated compliance checks for every California independent contractor agreement.

  • ABC test satisfied

    critical
  • No employer control over manner of work

    critical
  • Services are outside the company's usual business

    critical
  • Tax and insurance responsibility on contractor

    critical

+3 more compliance checks

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Frequently asked questions

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contract.diy is a document preparation service, not a law firm. Generated contracts are templates for informational purposes and do not constitute legal advice. We recommend having any contract reviewed by a qualified attorney before signing.