A new bill currently on the Governor’s desk for signature or veto, “The Freelance Worker Protection Act” (SB 988), is designed to safeguard the rights of freelance workers in California. A freelance worker is defined as a “bona fide” independent contractor hired to provide professional services for $250 or more. This includes individuals or single-person organizations.

Key Requirements of the bill include:

Timely Payment: Hiring parties must pay freelancers by the contract’s due date or within 30 days of service completion if no date is specified.

Written Contracts: All agreements must be in writing, detailing services, compensation, and payment timelines. This contract must be retained for at least four years.

Protection Against Retaliation: Freelancers are protected from discrimination or adverse actions when asserting their rights under this law.

Enforcement and Remedies: Freelancers can take legal action if their rights are violated, with potential remedies including attorney’s fees, damages, and injunctive relief. Failure to pay on time triggers a penalty of twice the unpaid compensation.

Non-Waivable Rights: Any attempt to waive these rights is void and unenforceable.

If signed into law, the Act would apply to contracts entered into or renewed on or after January 1, 2025.

California business owners should watch for the Governor’s action on the bill and, if signed into law, have their attorney review their freelance contacts for compliance.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.