This article provides an in-depth analysis of the enforceability of non-compete agreements against independent contractors in California. Non-compete clauses in California are not enforceable.As such, the law prohibits employers from entering into noncompete agreements that are void under California law. Every independent contractor agreement should be tailored to the specific circumstances of the engagement. As a general rule, non-compete agreements are not permitted under California law. The hiring entity must establish that the worker performs work that is outside the usual course of its business in order to satisfy part B of the ABC test. Rather, the specific language contained in the IWC wage orders, the Labor Code, or Unemployment Insurance Code will remain in effect. California's Business and Professions Code Sec. You can create noncompete agreements with employees or independent contractors. People going over paperwork.