California Freelance Contract Review
California regulates freelance work more heavily than any other state. AB 5 wrote the ABC test into the Labor Code, the Freelance Worker Protection Act (SB 988) has required written contracts for many solo freelancers since January 1, 2025, and the City of Los Angeles has run its own freelance ordinance since July 2023. On top of that, Business and Professions Code 16600 makes most non-competes void, for contractors as well as employees.
Non-compete / non-solicit in California
Non-competes generally void
Non-competes and non-solicits for freelancers in California
Employee non-competes are void and unenforceable under Business & Professions Code §16600. Employers can even face penalties for requiring them.
Client contracts often include a non-solicitation clause, sometimes an overbroad one that tries to bar you from an entire industry. Whatever California allows, narrow it to the client's own staff and named customers, for a short period, before you sign.
Freelancer payment protection in California
California has a freelance payment-protection law, the California Freelance Worker Protection Act (Bus. & Prof. Code 18100 and following), effective January 2025. It generally requires a written contract above a dollar threshold, timely payment, and real penalties for non-payment. Use it as a backstop, but still put specific payment terms in your contract.
Who owns your work
Under the federal Copyright Act, work is not automatically “work for hire” for an independent contractor, it takes a written assignment. Read whether the contract assigns only the final deliverables or reaches your concepts, drafts, and pre-existing tools, and add a carve-out for the reusable methods you bring to every project.
What does California's Freelance Worker Protection Act require?
For contracts entered into or renewed on or after January 1, 2025, a business that retains a one-person freelancer for professional services worth $250 or more, alone or combined with its contracts with you over the prior 120 days, must put the deal in writing. Business and Professions Code 18100 and following require each party's name and mailing address, an itemized list of services with their value, the rate and method of pay, the payment date or how it is set, and the date you must submit an invoice. If no payment date is stated, payment is due within 30 days after you finish. The hiring party must keep the contract for four years and may not retaliate.
Does Los Angeles add its own rules?
Yes. The City of Los Angeles Freelance Worker Protections Ordinance covers contracts made on or after July 1, 2023 that are worth $600 or more in a calendar year, alone or in aggregate. It also requires a written contract and payment by the contract date or within 30 days of completion, with records kept for four years. The city's Office of Wage Standards enforces it.
Could AB 5 make you an employee?
Labor Code 2775 applies the ABC test. Exemptions in sections 2776 (business-to-business) and 2778 (professional services such as marketing, graphic design, and freelance writing) send qualifying relationships back to the older Borello multi-factor test. AB 2257 lifted the original 35-submission cap on writers and photographers in 2020.
California sources checked 2026-10-09: Littler: California's Freelance Worker Protection Act (SB 988) · Fisher Phillips: FAQs on the Los Angeles Freelance Worker Protections Ordinance · Davis Wright Tremaine: AB 2257 independent contractor changes. Laws change; confirm the current rule before relying on it.
What ClauseAudit checks in a California freelance contract
- Non-compete / non-solicit enforceability under California law
- IP assignment and work-for-hire scope, with a pre-existing-tools carve-out
- Payment terms, deposit, milestones, and a kill fee
- Unlimited "reasonable" revisions with no cap
- Payment gated on subjective client approval
- Liability caps and indemnification
California freelance contract FAQ
Can a client make me sign a non-compete in California?
In California, non-competes are generally void and unenforceable, which extends to freelancers and contractors. Employee non-competes are void and unenforceable under Business & Professions Code §16600. Employers can even face penalties for requiring them. A narrow non-solicitation clause may still apply, so read it, but a broad non-compete usually cannot stop you working across your industry.
Does California protect freelancers from late or non-payment?
Yes. California has a freelance payment-protection law, the California Freelance Worker Protection Act (Bus. & Prof. Code 18100 and following), effective January 2025. It generally requires a written contract for freelance work above a dollar threshold, timely payment, and penalties (often double damages plus fees) for non-payment. That is a real backstop, but a clear contract with defined payment terms is still your first line of defense.
Who owns the work I create for a California client?
Under US copyright law, work is not automatically "work for hire" for an independent contractor, it requires a written assignment. Read whether the contract assigns only the final deliverables or sweeps in your concepts and pre-existing tools, and add a carve-out for your reusable methods. This is federal law and applies in California.
Does a California non-compete apply to an independent contractor?
California is one of 4 US jurisdictions treating employee non-competes as void rather than merely limited. Employee non-competes are void and unenforceable under Business & Professions Code §16600. Employers can even face penalties for requiring them. Contractor restraints are often argued differently from employee ones, since the bargain and the bargaining power differ, so how you are actually engaged matters as much as the label on the agreement.
Does it matter which state's law the agreement names?
It can, because California's neighbours do not all agree: Arizona (generally enforceable), Nevada (generally enforceable), Oregon (limited). Which law applies turns on the governing-law and venue clauses and on where the work is actually done, so those two clauses are worth reading before signing a freelance contract.
What can I do if a California client will not give me a written contract?
Under SB 988 a hiring party that refuses a written contract you asked for before starting can owe statutory damages, and a freelancer who wins in court can recover attorney fees and costs. Ask for the contract in writing and keep the request. If the work is in the City of Los Angeles and worth $600 or more in the year, the city ordinance gives a second route through the Office of Wage Standards.
Can a California client get around Section 16600 by choosing another state's law?
Section 16600 voids contracts that restrain anyone from a lawful profession, trade, or business, which reaches contractors, not only employees. Since January 1, 2024, Section 16600.5 also says a void non-compete is unenforceable in California no matter where or when it was signed. Its private right to sue is written for employees, but the core voidness rule is broad. A narrow customer non-solicit may still need a closer look.
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How neighbouring states treat restrictive covenants
Nationally: 4 jurisdictions treat employee non-competes as void, 13 allow them only in limited circumstances, 34 generally enforce them if reasonable.
California rules summarized as of October 2026; laws change and localities may add their own. This is automated educational information, not legal advice. ClauseAudit verifies current California law when you run your contract, and you should confirm anything critical with a qualified attorney.