California’s landscape for hiring freelance workers is changing. With the introduction of Senate Bill No. 988, also known as the Freelance Worker Protection Act, employers will have new requirements when engaging with freelancers. If you usually hire freelance workers, understanding this bill can help you avoid future issues.
The Freelance Worker Protection Act introduces new guidelines. Still, it only applies to individuals hired to provide professional services worth $250 or more. This legislation aims to establish clear expectations and responsibilities for both parties.
Understanding written contracts
The bill focuses on the requirement for written contracts. Starting on January 1, 2025, employers must provide freelancers with a signed copy of the contract. This document must include essential details such as:
- The names and addresses of both parties
- A description of services
- The agreed-upon compensation
Importantly, you must keep these contracts for at least four years. Moreover, you must pay freelancers by the date specified in the contract. If the contract does not specify a date, you must pay the total cost within 30 days of the completion of services.
Additionally, you cannot demand other services as a condition for timely payment. The bill also prohibits discrimination and adverse action against freelancers. Therefore, it will allow freelancers to take civil action, with the possibility of recovering damages.
That is why you must ensure your contracts contain detailed information. This way, you can protect yourself against future claims. Work with your attorney to review these contracts, ensuring they comply with all legal requirements.
Adhering to the new legislation
Failing to follow these requirements can result in legal and financial repercussions. To ensure compliance, you can:
- Develop standardized contracts that meet the new legal requirements.
- Implement processes to ensure timely payments.
- Educate hiring managers about the new legal obligations to avoid violations.
The Freelance Worker Protection Act takes a structured approach to freelance work in California. Employers must take steps to comply with these regulations. By drafting clear contracts and implementing timely payments, you can avoid repercussions. This way, you can foster positive relationships with freelancers. If you have questions regarding the new bill, consult an attorney. They can help you ensure you meet all requirements.