On January 1, 2025, California will enter a new era of protections for freelance workers with the implementation of the Freelance Worker Protection Act (FWPA), also known as Senate Bill (SB) 988. This groundbreaking law, signed by Governor Gavin Newsom in September 2024, offers vital legal safeguards for independent contractors and freelancers who work with California-based companies. The FWPA creates a formal framework for freelance work, outlining clear guidelines for contracts, payment timelines, and remedies for non-payment. It’s a game changer for freelance workers, who often struggle to secure timely payments or navigate the legal complexities of contract disputes.
For businesses and freelancers alike, it is crucial to understand what this new law means, how it applies, and the rights and responsibilities it establishes.
What Is the Freelance Worker Protection Act?
The Freelance Worker Protection Act is a new law designed to give freelance workers—also known as independent contractors—better protections when working with California-based entities. Inspired by the “Freelance Isn’t Free” concept advocated by the Freelancers Union, the FWPA addresses two major issues for freelance workers: contract requirements and timely payment.
As of 2025, freelancers working under contracts worth $250 or more will have the legal right to:
- A written contract outlining the services provided, payment details, and deadlines.
- Payment must be made within 30 days of completing the agreed-upon work unless otherwise specified in the contract.
Failure to adhere to these guidelines allows freelancers to seek double damages in court, a significant shift from the often murky and unregulated status of freelance work.
Key Provisions of the FWPA
Let’s break down the main components of the FWPA that will affect freelancers in California.
1. Written Contracts
One of the most impactful aspects of the FWPA is the requirement for written contracts. If a freelancer is hired for services totaling $250 or more within 120 days, the hiring entity (referred to as the “client”) must provide a written contract. This contract must include:
- The names and mailing addresses of both the freelancer and the client.
- A detailed description of the services the freelancer will provide.
- The compensation rate, payment method, and due date for payment.
- Any deadlines for submitting completed work or invoices.
Without a written contract, freelancers are often left vulnerable in payment disputes. The FWPA’s requirement for written contracts ensures that both parties have a clear, legally enforceable document outlining their responsibilities.
2. Timely Payment
Under the FWPA, clients must pay freelancers within 30 days of completing the work unless a different deadline is specified in the contract. This provision addresses a common problem faced by freelancers—late or non-payment. If the client fails to pay on time, the freelancer has the right to pursue legal action and can be awarded up to double the unpaid amount in damages.
3. Protection from Retaliation
Freelancers are also protected from retaliation under the FWPA. If a freelancer asserts their right to payment, files a lawsuit, or otherwise tries to enforce their legal rights under the FWPA, the client cannot retaliate by withholding future work or taking other adverse actions. This ensures that freelancers can enforce their rights without fear of losing business opportunities.
4. Enforcement and Legal Remedies
If a freelancer is not paid on time or doesn’t receive the agreed-upon compensation, they can file a lawsuit in civil court to recover their earnings. The FWPA also provides for attorney’s fees, meaning that if a freelancer successfully sues a client for non-payment, they can recover not only the payment owed but also the cost of legal representation.
Public prosecutors may also take action against clients who fail to comply with the law, which adds another layer of accountability for hiring entities.
Who Is Protected by the FWPA?
The FWPA specifically defines a “freelance worker” as an individual or organization consisting of no more than one person who provides professional services to a client. This can include consultants, gig workers, 1099 independent contractors, and subcontractors as long as they meet the $250 threshold for contracts.
However, not every type of work arrangement is covered by the FWPA. The law explicitly excludes the following from its definition of “hiring parties”:
- The United States government.
- The State of California or its subdivisions.
- Foreign governments.
- Individuals hiring services for personal or household purposes.
What Does the FWPA Mean for Freelancers?
For freelancers in California, the FWPA provides a layer of protection and formalization that has long been absent. Freelancers have historically been at a disadvantage when it comes to enforcing contracts, recovering payment, and securing legal representation. The FWPA changes that by mandating written contracts and providing freelancers with a clear legal recourse in cases of non-payment.
Increased Payment Security
The most significant benefit for freelancers is payment security. The FWPA’s requirement that clients pay freelancers within 30 days ensures that freelancers won’t be left in financial limbo after completing their work. The threat of double damages in court provides a strong incentive for clients to pay on time.
Legal Clarity
The FWPA provides freelancers with a clear legal framework. Written contracts reduce ambiguity and provide a clear reference point if any disputes arise. Freelancers also have the right to seek legal remedies without worrying about retaliation, making it easier to protect their rights without the fear of losing future business.
Greater Professionalism
The FWPA is likely to encourage greater professionalism on both sides of freelance relationships. Clients will be more aware of their legal obligations, and freelancers can confidently enter into agreements knowing that their payment and work terms are backed by law.
A New Era for Freelancers in California
The Freelance Worker Protection Act marks a significant shift in how freelance work is regulated in California. For too long, freelance workers have faced uncertainty when it comes to securing payment and enforcing their contracts. With the FWPA, freelancers now have a powerful tool to ensure they get paid fairly and on time. If you have questions about your rights as a contract worker in California, or if you believe your employment rights have been violated, reach out to the Law Offices of Todd M. Friedman, P.C. We can help you understand your rights and pursue justice for the harm you’ve experienced. Learn more about how we can help you by scheduling your consultation today.
