Independent contractors play a vital role in California’s economy, providing essential services in various fields, including design, media, consulting, and technology. For years, freelancers struggled with late payments, vague contract terms, and limited legal recourse. Now, those gaps have been addressed.
The Freelance Worker Protection Act (SB 988) officially took effect on January 1, 2025, granting freelancers enforceable rights and holding hiring parties accountable for their actions.
Why the Freelance Worker Protection Act Matters
The Freelance Worker Protection Act ensures freelancers are treated fairly in business relationships. Lawmakers recognized that independent contractors face unique challenges—particularly in terms of payment disputes and the lack of formal agreements. By requiring written contracts and establishing strict payment deadlines, the Act provides freelancers with the security and legal remedies they need to thrive.
Key Protections Under the Law
Under SB 988, any freelance contract worth $250 or more (either in a single project or across multiple contracts with the same client within a 120-day period) must meet specific requirements.
Hiring entities must now:
- Provide a written contract that includes the names, addresses, description of services, compensation, and payment date or method.
- Give the freelancer a signed copy of the contract and keep records for at least four years.
- Ensure payment is made by the contract deadline, or within 30 days of completion if no date is listed.
- Avoid changing the contract midstream by demanding lower pay or more work as a condition of payment.
- Refrain from retaliating against freelancers who exercise their rights under the law.
These requirements bring transparency to freelance work and protect contractors from the most common forms of abuse.
Remedies Freelancers Can Pursue
Freelancers now have stronger enforcement options if hiring entities fail to comply with regulations.
Remedies may include:
- Statutory damages of $1,000 if a contract was not provided when required.
- Double damages for unpaid compensation.
- Damages equal to the value of the contract for other violations.
- Recovery of attorney’s fees and court costs.
- Injunctive relief to stop continued violations.
These remedies give freelancers meaningful tools to collect payment and hold clients accountable.
Who is Covered by the Law
The Freelance Worker Protection Act applies to individuals and sole proprietors working as independent contractors. It does not apply to employees under California labor law or specific excluded industries. For the majority of freelancers, however, these protections apply immediately to contracts entered into or renewed after January 1, 2025.
How a Los Angeles Employment Law Attorney Can Help
Even with the law in place, challenges remain. Businesses may attempt to misclassify workers, delay payments, or retaliate in subtle ways. An experienced Los Angeles employment law attorney can review contracts, pursue unpaid compensation, and take legal action against hiring parties that violate the Freelance Worker Protection Act. Legal representation helps ensure freelancers fully benefit from the law’s protections.
Contact The Leichter Law Firm, APC, Today
If you are a freelancer in California and a client has failed to comply with the Freelance Worker Protection Act, you do not have to fight alone. The Leichter Law Firm, APC, represents independent contractors in Los Angeles County and across the state. Aryeh Leichter can help enforce your rights, recover compensation, and protect your freelance career, starting with a free, confidential consultation.