Following other states and cities across the nation, California Gov. Gavin Newsom signed Senate Bill 988, the Freelance Worker Protection Act (FWPA), into law on Sept. 28. This new law aims to provide greater protections to freelance workers (for example, “independent contractors”). Codified at California Business & Professions Code Section 18100 et seq., the FWPA imposes requirements on individuals and companies that hire freelance workers for specified “professional services.” Individuals and companies should familiarize themselves with these new obligations, the implications for their businesses, and the potential risks of noncompliance.
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California Imposes New Requirements for Engaging Independent Contractors
SHRM via Littler | Oct 2024
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Effective Date: 1/1/25
Law Articles
Under the FWPA, contracts between hiring parties and freelance workers must be in writing. The hiring party must provide the freelance worker with a signed copy of the written contract, either physically or electronically, and must retain the contract for at least four years.
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The FWPA requires covered freelance workers to be paid:
- on or before the date compensation is due as specified under the contract; or
- if the contract does not specify a payment date, no later than 30 days after the freelance worker completes the services under the contract.
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Waivers of FWPA requirements are void. A hiring party is also prohibited from discriminating or retaliating against any freelancer attempting to assert their rights under the FWPA.
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Baker & Hostetler | Oct 2024
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