The Freelance Worker Protection Act is a significant new bill currently sitting on Governor Newsom’s desk, awaiting a signature or veto. Also known as SB 988, the bill is designed to safeguard the rights of freelance workers in California. Here’s a breakdown of what this means for freelancers and hiring parties:
Who is a Freelance Worker?
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 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.
Effective Date:
If signed into law, the Act would apply to contracts entered into or renewed on or after January 1, 2025. California business owners should keep an eye out for status changes and review their freelance contacts for compliance with the new law.