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California Independent Contractor Agreement Template

California starts from the assumption that anyone you pay is an employee, and your business carries the burden of proving all three ABC conditions before treating someone as a contractor. On top of that, freelance jobs of $250 or more need a written contract spelling out the work, pay and payment date, and willful misclassification can trigger civil penalties of $5,000 to $25,000 per violation.

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California rules to know

  • The ABC test decides who is a contractor

    California presumes a worker is an employee unless the hiring business proves all three ABC conditions: the worker is free from its control, does work outside the usual course of its business, and is customarily engaged in an independently established trade. Specific exemptions — including a business-to-business exemption with its own criteria — apply in some cases.

    Cal. Lab. Code §§ 2775–2787 (AB 5, AB 2257)

  • Freelance work over $250 needs a written contract

    When hiring a freelance worker for $250 or more, the hiring party must provide a written contract stating the work, the pay and a payment date — and pay by that date or within 30 days of completion. Retaliation for asserting these rights is prohibited.

    Cal. Bus. & Prof. Code § 18100 et seq. (SB 988, eff. Jan. 1, 2025)

  • Misclassification carries steep penalties

    Willfully misclassifying an employee as a contractor can bring civil penalties of $5,000 to $15,000 per violation, rising to $10,000 to $25,000 for a pattern or practice — on top of back wages, taxes and benefits.

    Cal. Lab. Code § 226.8

  • Invention assignment has limits

    If the relationship is ever treated as employment, an assignment of inventions cannot reach inventions developed entirely on the worker's own time without the company's equipment or information, unless they relate to the business or result from the work.

    Cal. Lab. Code §§ 2870–2872

Last updated 2026-10-05

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Our California Independent Contractor Agreement template as a Word document — a general starting point you fill in yourself. Sign in free to download it.

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What a independent contractor agreement covers

  • Scope of services and deliverables
  • Fees, invoicing and payment deadline
  • Independent-contractor status and tax responsibility
  • IP ownership and work-for-hire assignment
  • Confidentiality
  • Term, termination and kill fee
  • Governing law and dispute resolution

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Frequently asked questions

How does California's ABC test affect whether I can hire a contractor?
Under California's ABC test, you must prove the worker is free from your control, does work outside the usual course of your business, and is customarily engaged in an independently established trade. Failing any condition generally means employee status, though specific exemptions, such as a business-to-business exemption with its own criteria, may apply in some cases.
What must a California freelance contract include when the job is $250 or more?
It must be in writing and state the work to be done, the pay, and the payment date. You then need to pay by that date or within 30 days of the work being completed. Retaliating against a freelancer who asserts these rights is prohibited, so build clear payment terms into the agreement from the start.
Can a California contractor agreement assign all of the worker's inventions?
Not always. If the relationship is ever treated as employment, an invention assignment cannot reach inventions developed entirely on the worker's own time without your equipment or information, unless they relate to your business or result from the work. Drafting the assignment with that limit in mind helps keep it enforceable.
Does signing an independent contractor agreement make someone a contractor?
No. The label in the contract doesn't decide it — how the work is actually controlled and paid does. State and federal agencies apply their own tests, and a contract that says “contractor” won't save a relationship that looks like employment in practice.
Who owns the work a contractor creates?
By default the contractor usually owns it, even if you paid for it. The agreement needs an express work-made-for-hire clause and a written assignment of IP to transfer ownership to your business.
Is a free template enough?
A template covers the common structure, but it can't know your scope, payment terms or how your state classifies workers. A custom draft fills those in for your situation.

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