In a significant move to protect California’s growing freelance workforce, Governor Gavin Newsom signed SB 988, the Freelance Worker Protection Act (FWPA), into law on September 28, 2024. Effective January 1, 2025, this law imposes minimum contract requirements for private employers hiring independent contractors. Similar to the Los Angeles Freelance Worker Protections Ordinance, the FWPA requires written agreements between hiring parties and freelancers. These agreements must detail the nature of the services, compensation rates, and payment deadlines. The legislation aims to ensure that freelancers are paid on time and receive basic protections, helping to formalize and secure freelance work across the state.
To comply with the FWPA, businesses in California must identify freelance workers providing professional services valued at $250 or more and ensure they provide them with a written contract before services commence. Contracts must include key details such as both parties’ names and addresses, service descriptions, compensation rates, and payment terms. Employers are also prohibited from retaliating against freelancers who assert their rights under the law, and they must pay freelancers promptly—no later than the date specified in the contract or, if unspecified, within 30 days of the service’s completion. Employers should review existing policies, update contracts, and train hiring managers to comply with the FWPA’s requirements to avoid potential legal consequences.
To ensure compliance with the FWPA and protect your business, contact us at info@mnklawyers.com.
