This part shall be known, and may be cited, as the Freelance Worker Protection Act.
Part 5Independent Contractors
Section § 18100
This section introduces the 'Freelance Worker Protection Act,' which aims to establish rights and protections for people who work independently or on a freelance basis.
Freelance Worker Protection Act worker rights independent contractor self-employed gig economy freelancer workplace protections income security contract enforcement payment rights legal protection California freelancers business regulation
Section § 18101
This section defines key terms related to freelance work in California. A "freelance worker" is someone working independently, earning at least $250 for professional services. A "hiring party" is an entity in California engaging a freelancer, unless it's the U.S. government, the state, foreign governments, or individuals hiring for personal use. "Professional services" are defined in another labor code, and a "public prosecutor" is explained in a different section.
For purposes of this part, the following definitions apply:
(a)CA Business and Professions Code § 18101(a) “Freelance worker” means a person or organization composed of no more than one person, whether or not incorporated or employing a trade name, that 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 ($250), either by itself or when aggregated with all contracts for services between the same hiring party and independent contractor during the immediately preceding 120 days.
(b)CA Business and Professions Code § 18101(b) “Hiring party” means a person or organization in the State of California that retains a freelance worker to provide professional
services, except any of the following:
(1)CA Business and Professions Code § 18101(b)(1) The United States government.
(2)CA Business and Professions Code § 18101(b)(2) The State of California or any subdivision thereof.
(3)CA Business and Professions Code § 18101(b)(3) A foreign government.
(4)CA Business and Professions Code § 18101(b)(4) An individual hiring services for the personal benefit of themselves, their family members, or their homestead.
(c)CA Business and Professions Code § 18101(c) “Professional services” has the same meaning as paragraph (2) of subdivision (b) of Section 2778 of the Labor Code.
(d)CA Business and Professions Code § 18101(d) “Public prosecutor” has the same meaning as Section 180 of the Labor Code.
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Section § 18102
This law ensures that freelance workers get paid according to their contract. If a specific payment date isn't mentioned in the contract, the hiring party must pay the freelancer within 30 days after they finish their work. A hiring party can't make a freelancer accept less money or more work than what the contract states in order to be paid on time.
(a)CA Business and Professions Code § 18102(a) Except as otherwise provided by law, a hiring party shall pay a freelance worker the compensation specified by a contract for professional services:
(1)CA Business and Professions Code § 18102(a)(1) On or before the date compensation is due pursuant to the contract.
(2)CA Business and Professions Code § 18102(a)(2) If the contract does not specify when the hiring party shall pay, no later than 30 days after the completion of the freelance worker’s services under the contract.
(b)CA Business and Professions Code § 18102(b) Once a freelance worker has commenced performance of services under a contract, a hiring party shall not require as a condition of timely payment that the freelance worker do either of the following:
(1)CA Business and Professions Code § 18102(b)(1) Accept less compensation than the amount of compensation specified by the contract.
(2)CA Business and Professions Code § 18102(b)(2) Provide more goods or services or grant more intellectual property rights than agreed to in the contract.
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Section § 18103
This California law requires that when someone hires a freelancer, there must be a written contract between them. The hiring party must give a signed copy to the freelancer and keep a copy for at least four years. The contract should include contact information for both parties, a list of services with their values, payment details, and dates for service submission and payment. Even if there's no written contract, freelancers may still be able to enforce agreements based on other evidence like conversations or written summaries about the work and rates.
(a)CA Business and Professions Code § 18103(a) Whenever a hiring party retains the services of a freelance worker, the contract between the hiring party and the freelance worker shall be in writing. The hiring party shall furnish a signed copy of the written contract, either physically or electronically, to the freelance worker. The hiring party shall retain the contract for no less than four years.
(b)CA Business and Professions Code § 18103(b) The contract shall include, at minimum, all of the following information:
(1)CA Business and Professions Code § 18103(b)(1) The name and mailing address of each party.
(2)CA Business and Professions Code § 18103(b)(2) An itemized list of all services to be provided by the freelance worker, including the value of those services and the rate and method
of compensation.
(3)CA Business and Professions Code § 18103(b)(3) The date on which the hiring party shall pay the contracted compensation or the mechanism by which the date shall be determined.
(4)CA Business and Professions Code § 18103(b)(4) The date by which a freelance worker shall submit a list of services rendered under the contract to the hiring party to meet the hiring party’s internal processing deadlines for purposes of timely payment of compensation.
(c)CA Business and Professions Code § 18103(c) This section does not limit existing contract law, including, but not limited to, that it does not prevent a freelance worker from enforcing an oral contract or recovering under the doctrine of promissory estoppel. Notwithstanding a refusal by the hiring party to provide a written contract as required by subdivision (a), the following may be evidence that a contract was formed between the parties:
(1)CA Business and Professions Code § 18103(c)(1) The hiring party made representations to the freelance worker regarding the rate for services to be performed.
(2)CA Business and Professions Code § 18103(c)(2) The freelance worker provided in writing any document to the hiring party, including email, text message, or other electronic communication, a summary of the rate and work to be performed prior to performing the work.
(3)CA Business and Professions Code § 18103(c)(3) The freelance worker performed the work that the freelance worker understood was to be performed.
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Section § 18104
This law says that you can't legally waive, or give up, any part of the provisions in this section. Doing so goes against what is considered good for the public and won't hold up in court.
A waiver of any provision in this part shall be deemed contrary to public policy and is void and unenforceable.
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Section § 18105
This law says that an employer cannot discriminate against freelance workers or punish them if they speak up against unfair practices, take part in related legal proceedings, or try to enforce their rights. It's designed to protect freelancers from negative consequences for asserting their rights under the law.
A hiring party shall not discriminate or take any adverse action against a freelance worker that penalizes a freelance worker for, or is reasonably likely to deter a freelance worker from, taking any of the following actions:
(a)CA Business and Professions Code § 18105(a) Opposing any practice prohibited by this part.
(b)CA Business and Professions Code § 18105(b) Participating in proceedings related to the enforcement of this part.
(c)CA Business and Professions Code § 18105(c) Seeking to enforce rights provided by this part.
(d)CA Business and Professions Code § 18105(d) Otherwise asserting or attempting to assert rights provided by this part.
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Section § 18106
If a freelance worker faces unfair treatment, they or a public prosecutor can take legal action to address the issue. If they win, the worker can recover attorney fees, costs, and other appropriate remedies. If a hiring party refused a written contract request, the worker gets $1,000. Late payments mean the worker can get up to twice the unpaid amount. For any other violations, damages equal the greater of the contract value or the work done's worth.
(a)CA Business and Professions Code § 18106(a) An aggrieved freelance worker or a public prosecutor may bring a civil action to enforce this part.
(b)CA Business and Professions Code § 18106(b) A prevailing plaintiff in an action alleging a violation of this part is entitled to reasonable attorney’s fees and costs, injunctive relief, and any other remedies deemed appropriate by the court. Damages shall be awarded to an aggrieved freelance worker as follows:
(1)CA Business and Professions Code § 18106(b)(1) If the freelance worker requested a written contact prior to commencing work under the contract and the hiring party refused in violation of Section 18103, the freelance worker shall be awarded an additional one thousand dollars ($1,000).
(2)CA Business and Professions Code § 18106(b)(2) If the hiring party failed to pay the freelance worker the contracted compensation by the time required under Section 18102, the freelance worker shall be awarded damages up to twice the amount that remained unpaid at the time payment was due. If the freelance worker requested a written contract prior to commencing work under the contract and the hiring party refused in violation of Section 18103, the amount unpaid shall be determined by the rate the freelance worker reasonably understood to apply to the work.
(3)CA Business and Professions Code § 18106(b)(3) If the hiring party violates any other provision of this part, the freelance worker may be awarded damages equal to the value of the contract or the work performed, whichever is greater.
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Section § 18107
This law section states that it only concerns contracts that are started or renewed starting January 1, 2025.
This part applies only to contracts entered into or renewed on or after January 1, 2025.
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