CA · EMPLOY-CONTR · Updated July 2026 · Free
California Employment Contract
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California at a glance: Non-Compete Ban: Strictly Void (Cal. Bus. & Prof. Code § 16600) · Out-of-State Jurisdiction Ban: Prohibited (Cal. Lab. Code § 925) · Required Disclosures: Wage Theft Notice (§ 2810.5) for hourly
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Overview
Employment Contracts in California
California employment contracts are heavily employee-protective. Non-compete clauses are strictly void and illegal under Business and Professions Code Section 16600, and employers are banned from enforcing out-of-state forum selection or governing law clauses on CA residents (California Labor Code Section 925).
Additionally, employers must provide hourly employees with a written Wage Theft Prevention Act notice (Labor Code § 2810.5) detailing payment schedules, sick leave, and workers' comp info.
Key Facts
California Employment Contract — Quick Reference
| Requirement | California Rule |
|---|---|
| Non-Compete Ban | Strictly Void (Cal. Bus. & Prof. Code § 16600) |
| Out-of-State Jurisdiction Ban | Prohibited (Cal. Lab. Code § 925) |
| Required Disclosures | Wage Theft Notice (§ 2810.5) for hourly |
| At-Will Presumption | Yes (Cal. Lab. Code § 2922) |
Legal Requirements
California Legal Requirements
- Any non-compete clause included is void and can subject the employer to civil penalties.
- Employers must notify employees of CA paid sick leave entitlements.
- Arbitration clauses must be mutual and comply with specific disclosure rules.
Governing Laws
California Governing Laws
Cal. Lab. Code § 925
Forum Selection Restrictions
Prohibits contracts from requiring California employees to litigate disputes outside California.
Cal. Bus. & Prof. Code § 16600
Void Restrictive Covenants
Bans all non-compete clauses, rendering them entirely unenforceable.
Read the full text of these laws at Cornell Law School's California legal resources or your state legislature's official website.
Questions & Answers
California Employment Contract — Frequently Asked Questions
Are non-solicitation clauses valid in California?
Generally, no. California courts treat employee and customer non-solicitation clauses as void under Section 16600, except in very narrow business-sale circumstances.
What is California's at-will employment law?
Under Labor Code § 2922, employment is presumed to be at-will unless a written agreement specifies a fixed term or lists specific "just cause" reasons for termination.