California Independent Contractor Agreement PDF
California at a glance: Classification Test: ABC Test (Cal. Labor Code § 2775) · Prong B Restriction: Work must be outside client's core business · Notarization Required: No
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Independent Contractor Agreements in California
California independent contractor agreements are governed by the California Labor Code and Assembly Bill 5 (AB 5). California applies the exceptionally strict **ABC Test** (Cal. Labor Code § 2775) for worker classification.
Under the ABC Test, a worker is presumed to be an employee unless the client proves the worker is free from control, performs work outside the client's usual business course (Prong B), and is engaged in an independent trade. Numerous professional exemptions (such as for consultants, lawyers, and writers) exist but are subject to a complex "business-to-business" exemption test.
California Independent Contractor Agreement — Quick Reference
| Requirement | California Rule |
|---|---|
| Classification Test | ABC Test (Cal. Labor Code § 2775) |
| Prong B Restriction | Work must be outside client's core business |
| Notarization Required | No |
| Governing Law | Cal. Labor Code § 2775 |
California Legal Requirements
- Must comply with the ABC test or satisfy the multi-factor business-to-business exemption.
- Contractor must retain control over how the services are executed.
- Contractor must be responsible for all licensing, business taxes, and insurance.
California Governing Laws
Read the full text of these laws at Cornell Law School's California legal resources or your state legislature's official website.