ContractsSCACalifornia
CAWestEmployee-FriendlyHigh Risk

Subcontractor Agreementin California

A contract between a prime contractor and subcontractor defining the scope of work to be performed, payment terms, and flow-down obligations from the prime contract. California's employee-friendly legal climate creates specific considerations for SCA drafting and enforcement.

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Legal Climate
Employee-Friendly
Non-Competes
Restricted
Governing Law
Very Popular
Key City
Los Angeles

California Contract Law

Key Legal Fact

California broadly prohibits employee non-compete agreements under Business & Professions Code § 16600.

Notable SCA Law

SB 699 (2023) makes non-competes unenforceable even if signed in other states, with penalties for attempting to enforce.

Key Clauses to Review

1
Flow-Down Provisions
Requires California-specific drafting under employee-friendly legal standards.
2
Payment Contingent on Prime Payment
Requires California-specific drafting under employee-friendly legal standards.
3
Termination for Convenience
Requires California-specific drafting under employee-friendly legal standards.
⚠ Common Issue
"Pay when paid" clauses shifting client non-payment risk to subcontractor

Major Industries in California

TechnologyEntertainmentAgricultureFinance

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