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Freelance Worker Protection Act | SB 988

California’s Freelance Worker Protection Act gives qualifying independent contractors clearer rights when businesses hire them for professional services. Senate Bill 988 applies to contracts entered into or renewed on or after January 1, 2025, and sets rules for written agreements, payment deadlines, retaliation, and enforcement.

In the event you believe your employee rights were violated, contact our employment law attorneys in Orange County today for a free case consultation.

Who Is Covered by the Freelance Worker Protection Act?

The law covers certain bona fide independent contractors who provide professional services worth at least $250. That amount can come from one contract or several contracts with the same hiring party during the previous 120 days. Covered work includes services such as marketing, human resources administration, graphic design, grant writing, photography, freelance writing, editing, translating, and certain other professional services.

Not every independent contractor falls under the Act. Government entities are excluded, as are individuals who hire freelancers for their own personal, family, or household needs. The Act also does not determine whether a company correctly classified someone as an independent contractor.

A Written Agreement Is Not Optional

Under SSB 988, a hiring party must provide a covered freelancer with a written contract and a signed copy. The hiring party must keep that agreement for at least four years. The contract should clearly state:

  • What work the freelancer will perform.
  • How much the work is worth.
  • The rate and method of payment.
  • When payment is due or how that date will be calculated.
  • Any deadline for submitting completed work for payment processing.

If a business fails to put the agreement in writing, emails, text messages, invoices, project instructions, and discussions about rates may still help establish the terms.

When Does a Freelancer Have to Be Paid?

The hiring party must pay by the date stated in the contract. If a payment date isn’t provided, payment is generally due no later than 30 days after the freelancer completes the work.

Once work begins, the hiring party cannot hold payment hostage to new demands, require a freelancer to accept less money, perform extra services, or give up additional intellectual property rights just to receive payment.

What if a Client Retaliates After You Assert Your Rights?

Freelancers do not have to remain silent when a hiring party ignores the law. SB 988 prohibits discrimination and adverse action against freelancers who oppose prohibited conduct, participate in an enforcement proceeding, or attempt to exercise rights provided by the Act.

For example, a hiring party cannot lawfully punish a covered freelancer who asks for the required written contract or payment that has already owed. The law also prevents hiring parties from requiring freelancers to waive these protections as a condition of doing business.

What Remedies Are Available?

A freelancer whose rights were violated may bring a civil action and the available remedies depend on what happened:

  • If a freelancer requested a written contract before starting work and the hiring party refused, the freelancer may recover an additional $1,000.
  • A failure to pay on time may support damages of up to twice the unpaid amount.
  • Other violations may allow recovery based on the value of the contract or the work performed.

A successful claim may also recover reasonable attorney fees and costs, as well as injunctive relief when the court finds it appropriate.

A Freelance Dispute Can Involve More Than Compensation

A dispute over freelance work may reveal that the working relationship was not truly independent. A business may call someone a freelancer while still controlling when, where, and how the work is performed, setting strict schedules, supervising day-to-day duties, or treating the person like part of its regular workforce.

Depending on your circumstances, you may have claims involving minimum wages, overtime, meal and rest breaks, expense reimbursement, payroll records, or other protections that apply to employees. A Los Angeles independent contractor misclassification lawyer can review your working relationship, including examining control over the work, payment structure, scheduling, supervision, equipment, and how closely the services fit into the company’s usual business. They can then determine whether the dispute should be treated only as a freelance payment matter or whether you have an employee misclassification claim.

Protect Your Rights Under SB 988

If a hiring party failed to provide a required contract, withheld payment, changed the terms after work began, or retaliated after you asserted your rights, you may have legal options. Call Aegis Law Firm at (949) 379-6250 or contact us online for a free consultation.