This chapter provides an overview of contract law as it relates to employment contracts. A. Employment as a Contract.California has strict laws regarding employer-employee relationships. The state considers all employment relationships to involve a contract, even a verbal one. California is an atwill employment state. This means that, in California, an employee can be fired for any reason or no reason, with or without notice. When drafting an employment contract in California, including comprehensive details regarding the employee is crucial. In September of 2019, Governor Newsom signed Assembly Bill (AB) 5 into law. But, employment agreements in California are subject to state contract law. Governor Newsom recently approved several employment bills that will significantly impact the rights of employees in California starting on January 1, 2025.