Free US Contract Templates

Frequently asked questions

Do I need a different contract for each US state?+

Yes, for independent contractor agreements. Each state applies its own classification test to determine whether a worker is an employee or a contractor. California and Illinois use the strict ABC test, which requires hiring parties to prove three conditions. New York uses a dual test depending on the type of claim. Texas and Florida apply the federal right-to-control test. Using a state-specific agreement ensures your contract reflects the correct classification standard and any state-specific requirements such as written contract mandates or non-compete restrictions.

What is the DOL's new independent contractor rule in 2026?+

On February 26, 2026, the Department of Labor issued a Notice of Proposed Rulemaking to replace the Biden Administration's 2024 six-factor test with a five-factor economic realities test. The two core factors are: (1) the nature and degree of the hiring party's control over the work, and (2) the worker's opportunity for profit or loss based on their own initiative and investment. Three secondary factors apply when the core factors do not point to the same result: skill required, permanence of the working relationship, and whether the work is integrated into the hiring party's production. The comment period closed April 28, 2026 and the rule is pending finalization. Notably, actual practice matters more than what is written in the contract.

Are non-compete clauses still enforceable after the FTC ban was removed?+

The FTC's nationwide non-compete ban was vacated by a federal court in 2024 and officially removed from the Code of Federal Regulations on February 12, 2026. State law now governs entirely. California, North Dakota, Minnesota and Oklahoma ban non-competes outright. New York bans them for most workers — non-solicitation clauses are still permitted. Texas and Florida enforce non-competes that meet a reasonableness standard: limited geographic scope, reasonable duration, and protection of a legitimate business interest. The FTC retains authority to challenge specific agreements case-by-case under Section 5 of the FTC Act.

Which US states require a written contract for freelance work?+

Several states now require written contracts for freelance engagements above a payment threshold. California's Freelance Worker Protection Act (effective January 1, 2025) requires a written contract for any engagement worth $250 or more, or $250 cumulatively in a 120-day period. New York's Freelance Isn't Free Act (effective August 28, 2024, GBL Article 44-A) requires a written contract for engagements of $800 or more. Illinois' Freelance Worker Protection Act requires written contracts for engagements of $500 or more within a 120-day period. Similar ordinances apply in Minneapolis, Seattle, Los Angeles and Columbus, Ohio.

What is the difference between the ABC test and the right-to-control test?+

The ABC test (used in California, New Jersey, Massachusetts and Illinois) presumes workers are employees unless the hiring party can prove all three: (A) the worker is free from the company's control in performing the work; (B) the work is outside the usual course of the company's business; and (C) the worker is customarily engaged in an independently established trade or business. The right-to-control test (used in Texas, Florida and most other states) focuses on the economic reality of the relationship — primarily who controls how the work is performed and how the worker is compensated. The right-to-control test is generally easier for hiring parties to satisfy.

Can I use a standard contract if my state has stricter freelance laws?+

No. If your state has a freelance protection law such as California's FWPA or New York's Freelance Isn't Free Act, a generic template may not satisfy the mandatory written contract requirement or include legally required disclosures. Use a state-specific template that already incorporates the applicable state law requirements. The governing law clause in your contract also determines which state's courts will interpret it in a dispute, so matching the template to your jurisdiction is essential.