Freelance Worker Protection Act

4.17.25

Among the new laws which commenced on January 1, 2025 is the Freelance Worker Protection Act. Introduced by SB-988, the new Act aims to institute minimum requirements for contracts between a Hiring Party and a Freelance Worker. This begs the question, what is a Hiring Party and what is a Freelance Worker?

The Act defines a Freelance Worker as a person or organization “of no more than one person” who is hired or retained as a “bona fide independent contractor by a hiring party to provide professional services in exchange for an amount equal to or greater than two hundred and fifty dollars.” The dollar amount is not limited to a single contract, but applies to the aggregate of all the contracts between the parties for the past 120 days.

A Hiring Party is defined as a person or organization. However, there are exceptions to this definition. Those exceptions include the United States government, the State of California, foreign governments, and individuals hiring for, “the personal benefit of themselves, their family members, or their homestead.”

Professional services is defined under Labor Code § 2778(b)(2) and can include marketing, human resources administration, travel agents, graphic designers, grant writers, artists, photographers, videographers, freelance writers or editors, licensed esthetician, and performers.

The Act requires a written contract when a Freelance Worker is hired, which must include:

  • Name and mailing address of the parties
  • List of all services the Freelance Worker is providing, value, and rate and method of compensation
  • The date the Hiring Party will issue payment
  • The date the Freelance Worker will submit a list of services rendered to the Hiring Party for timely payment

However, even if the parties fail to comply with the Act by putting the contract in writing, the Freelance Worker may still be able to enforce an oral contract if:

  • The Hiring Party made representations regarding the rate for services
  • Prior to performing the work, the Freelance Worker provided any written document to the Hiring Party, including texts, which had a summary of rates and work to be performed prior.
  • And the Freelance Worker performed the work

On the other hand, if the Hiring Party fails to comply, the costs could be steep. For refusing to put the contract into writing, the Freelance Worker could be awarded $1,000 on top of other damages for violations of the Act, which include attorney’s fees and double damages.

This is not legal advice. However, if you are seeking legal advice regarding compliance with this, or other California labor laws, or need an assistance with a dispute, please contact the attorneys at Schwartz Semerdjian Cauley Schena & Bush, LLP. This article was written by Joshua Gilbert.