Starting January 2025, California’s Freelance Worker Protection Act, formally known as California SB 988, sets the stage for clearer and fairer contracts between hiring parties and external talent. Whether you’re working with an independent designer or a freelance consultant, here’s what you need to know to stay compliant.
This new law isn’t an isolated development—it follows the trail blazed by New York’s Freelance Isn’t Free Act and Illinois’ own Freelance Worker Protection Act. These regulations are part of a growing movement to protect freelance professionals and bring clarity to independent work arrangements. With the freelance economy booming and flexible work becoming the norm, we can expect more states and jurisdictions to roll out similar laws. Businesses need to stay ahead of these changes, ensuring they’re compliant while continuing to attract top external talent. The message is clear: the future of work is flexible, and the legal framework is catching up fast.
What’s in the new California Freelance Worker Protection Act?
- Contracts are a must
All contracts with freelancers for services over $250 need to be in writing. Plus, you’ll need to keep those documents for at least four years. - Prompt payment is non-negotiable
Freelancers must be paid by the deadline outlined in the contract. No due date? Then payment is required within 30 days of completing the work. - Protection for freelancers
Businesses can’t retaliate against freelancers for standing up for their rights under this law. Freelancers can take legal action if a hiring party falls short, and public prosecutors can step in too.
Why It Matters
This new law helps build trust and transparency between businesses and the external talent they rely on. Plus, it highlights the importance of respecting independent professionals by ensuring they get paid fairly and on time.
Ready to navigate this new era of freelance collaboration? At Worksome, we’re here to simplify the entire freelance management process so you can focus on getting great work done.
Want to learn more about streamlining your freelance operations? Get in touch with us.