4 Important Things To Know About The Freelance Worker Protection Act

Freelance workers provide valuable goods and services to both small and large businesses. A study by Upwork found that 64 million people in the United States, or about 38 percent of the workforce, performed freelance work in 2023. These workers added about $1.27 trillion in annual earnings to the economy.

In many cases, hiring freelancers is less expensive because these workers don’t have the overhead of a full time employee. Unfortunately, freelance workers are often vulnerable to wage theft, discrimination, and more because they aren’t protected by a large organization. The good news is that California has recently passed a law that protects freelance workers.

This law, known as the Freelance Worker Protection Act (FWPA), establishes some basic framework that helps protect these independent workers. Here’s what you need to know about it.

4 Essential Facts about the Freelance Worker Protection Act

1. FWPA Starts Soon

Governor Gavin Newsom signed SB988 into law in September of 2023. It will go into effect on January 1, 2025. All freelance workers who enter into or renew their contract with a hiring party on or after January 1, 2025, are covered.

2. What The Terms Mean

A hiring party is any person or organization operating in California that retains a freelancer to provide professional services

A freelance worker is someone who is hired or retained as an independent contractor by a hiring party to perform professional services that pays $250 or more, either from a single contract or from combined contracts over the course of 120 days

The term “professional services” includes a wide variety of services, such as:

• Freelance writing
• Photography/videography
• Photo or video editing
• Marketing
• Graphic design
• Illustrating
• Grant writing

3. Freelance Workers Are Entitled To A Written Contract

FWPA requires the hiring party to provide the freelancer with a written contract, either printed on paper or electronically, and keep a copy for at least four years.

The written contract must contain:

• The name and mailing address of the freelancer and the hiring party
• An itemized list of all the services the freelancer will provide, the value of these services, and the method in which they will be paid
• Payment dates, or the mechanism by which the hiring party will determine pay dates
• Due dates by which the freelance worker will complete the project

Freelancer workers must receive timely payments.

FWPA requires hiring parties to pay freelance workers:

• On or before the pay date stipulated in the contract
• No later than 30 days after completion of the work if the contract does not specify a pay date

4. Hiring Parties Can’t Change The Terms After Work Has Begun

Once the freelancer has started work, the hiring party cannot require the worker to accept less compensation or do more work than previously agreed in order to pay promptly.

Are You a Freelancer Working for a California-based Employer? You Need to Know Your Rights! Contact Your California Employment Attorney At D.Law!

A new law in California protects freelance workers just like you! If you are a freelancer and have been treated unfairly by a California employer, take action now by contacting or calling D.Law. Our attorneys are experts in California employment law and worker‘s rights and can help you get the pay and respect you earned while working as a freelancer in the Bay Area, San Diego, Fresno, Los Angeles, and other CA cities.