California Service Agreement PDF
California at a glance: Non-Compete Ban: Strictly Void (Cal. Bus. & Prof. Code § 16600) · Out-of-State Jurisdiction: Restricted under Section 925 · Late Fee Interest Cap: Subject to California usury laws (generally 10%)
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Service Agreements in California
California service agreements are subject to the California Civil Code and specific business regulations. Covenants not to compete are strictly void (Cal. Bus. & Prof. Code § 16600), and out-of-state forum selection clauses are generally restricted if they burden California residents (Cal. Lab. Code § 925).
Additionally, interest rates charged on late invoice payments are subject to California's usury limits unless exemptions apply.
California Service Agreement — Quick Reference
| Requirement | California Rule |
|---|---|
| Non-Compete Ban | Strictly Void (Cal. Bus. & Prof. Code § 16600) |
| Out-of-State Jurisdiction | Restricted under Section 925 |
| Late Fee Interest Cap | Subject to California usury laws (generally 10%) |
| Governing Law | California Civil Code |
California Legal Requirements
- Agreement cannot contain restrictive non-compete clauses targeting the service provider.
- Late fees or interest on unpaid invoices must not exceed statutory interest caps.
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.