Yes. California has carte blanche because so many people want to be there (it is by far the most populous state with 40 million residents). They're not worried about keeping people or businesses in-state and it shows.
California has labor laws preferential to employees (e.g. not enforcing non-competes, the "your side projects belong to you if you aren't using your employer's resources"), but the minute you want to take one of those side projects into the business realm, California murders it on the spot. Pretty ridiculous.
CA is pretty good at making sure they get their money from you.