California Employment Contract Template

What Is California Employment Contract Law?

California employment contract law, governed by the California Labor Code (LAB) [1] , sets rules for employer-employee relationships. It ensures fair treatment, regulates workplace safety, and protects injured workers.

Under this code, an employee is anyone working for an employer under a written, oral, or implied agreement. The employment can be lawful or unlawful, but the individual will still be called an employee. [2] This definition helps determine if a company needs an employment contract or another document.

Related Employment Templates for California

If you run or manage a company in California, an employment agreement may help you cover many bases. But it likely won’t be the only document you need. Here are some other documents that you may need as you coordinate your team.

Independent Contractor Agreement

Essential when hiring freelancers or contractors.

Subcontractor Agreement

Used when a general contractor hires a subcontractor to handle specific tasks within a larger project.

Non-Disclosure Agreement

Essential when sharing confidential information with another party.

Can I Use a Non-Compete Agreement in California?

If you want to prevent an individual from working for another company, you may consider a California non-compete agreement. However, this document will be unenforceable when used for employees due to legislation that passed on January 1, 2024. You can only use a non-compete agreement to prevent the sale of a business’s intangible assets or the sale of a substantial ownership stake.

Is California an At-Will Employment State?

California is an at-will employment state, so employers can end employment at any time. They don’t need to give notice or a reason, as long as it isn’t illegal or discriminatory. The California Civil Rights Department ensures compliance by enforcing discrimination laws related to employment.

California has three exceptions to at-will employment:

1. Public Policy Exception: Employers can’t fire someone for reasons that break the law, like firing an employee for reporting illegal activity.
2. Implied Contract Exception: If an employer’s actions or policies suggest a promise, they can’t fire an employee based on that promise.
3. Covenant of Good Faith: Employers can’t fire employees out of bad faith, like to prevent them from receiving benefits.

Although California employment is at-will by default, parties can agree to a different arrangement. They must record this alternative arrangement in their employment contract. For example, they may decide on just-cause termination. In this framework, an employer can only fire the employee for a valid job-related reason.

What Is the Minimum Wage in California?

As of January 1, 2025, the minimum wage in California is $16.50 for all employees. Fast-food workers earn a minimum wage of $20 per hour. [3] Meanwhile, healthcare facility employees’ wages range from $18 to $23 per hour, depending on the size of the facility.

When writing your California employment agreement, include at least the minimum wage for the employee’s pay. Ensure that the minimum wage matches the employee’s status. If the employee isn’t a fast food or healthcare facility employee, you may be able to pay them the standard minimum wage.

Does California Require Paid Meal & Rest Breaks?

Yes. The Industrial Welfare Commission requires a paid 10-minute rest break every four hours for non-exempt employees.

Employees working more than five hours must get at least a 30-minute meal break, but it can be unpaid. This rule doesn’t apply if their workday is six hours or less and both parties agree to skip it. If an employee works more than 12 hours in a day, they must get a second unpaid 30-minute meal break.

Be sure to include these provisions in your employment contract in California. While you can offer more meal and rest breaks, these are the minimum standards.

How Legal Templates Can Help

Legal Templates simplifies creating a California employment contract through our easy-to-use document builder. Tailor your contract by adding essential clauses like NDAs and outlining payment terms and job duties.

Our template ensures that your contract meets the employment contract requirements in California. With our document builder, you can customize the contract to your specific terms, making it simple to write a compliant agreement.

California Employment Contract Sample

Below is an example of a California employment contract template. Once you become familiar with the format, you can create your own with our document builder.

Frequently Asked Questions