The Freelance Employee Safety Act, an iteration of “Freelance Isn’t Free”, was signed into legislation by Governor Gavin Newsom on September twenty eighth, 2024. This laws, which was authored by Senator Scott Wiener, offers protections for impartial contractors who work for a hiring entity positioned in California.
Although freelancing represents an important a part of California’s economic system, the prevalent subject of non-payment stays, reflecting a rising want to guard this very important workforce sector. In 2022, 60 million People freelanced, contributing $1.35 trillion to the nationwide economic system, with 71% reporting late or non-payment for his or her work. For these freelancers who function paycheck to paycheck, the absence of dependable fee programs has lengthy been a serious subject.
California’s Freelance Employee Safety Act straight addresses these considerations by requiring written contracts for freelance companies valued at $250 or extra. These contracts should define the scope of labor, fee technique, deadlines, and different essential particulars—guaranteeing transparency and equity from the beginning. Right here’s what you must know concerning the legislation:
Key Definitions:
- Hiring Occasion: an individual or group within the State of California that retains a contract employee to offer skilled companies (excl federal, state, native, or overseas governments or people hiring companies for the private good thing about themselves, their relations, or their homestead).
- Freelance Employee: an individual that’s employed or retained as a bona fide impartial contractor by a hiring celebration to offer skilled companies in trade for $250 or extra (aggregating all contracts between the identical hiring celebration in 120 days).
- Skilled companies: has the identical which means as that supplied underneath AB 5 and consists of companies similar to advertising, human sources, journey agent companies, graphic design, grant writing, wonderful artistry, pictures, videography, photograph enhancing, freelance writing, translating, enhancing, illustrating, and others.
Key Provisions of the Freelance Employee Safety Act:
- Written Contract Requirement: Freelancers should have a written settlement in place for work totaling $250 or extra over a 120 day interval. The contract should clearly define the scope of companies, deadlines, compensation charges, and fee strategies.
- 30-Day Fee Phrases: Freelancers are entitled to fee inside 30 days of finishing their work, except the contract specifies in any other case. This provision eliminates the uncertainty many freelancers face when ready for fee.
- Anti-Retaliation Protections: Freelancers are shielded from any retaliation by hiring entities in the event that they assert their proper to truthful fee underneath the legislation.
- Enforcement and Authorized Cures: If a shopper fails to pay, freelancers can search authorized recourse, together with double damages and the restoration of lawyer’s charges. Each freelancers and public prosecutors can file claims to make sure compliance with the legislation.
What Does This Imply for California Freelancers?
Freelancers will quickly have the ability to function with larger safety, figuring out that they’ve authorized protections for well timed funds and written contracts. Very similar to freelancers in Illinois and New York, who’ve benefited from related legal guidelines, California freelancers will now have the ability to implement primary rights with extra confidence.
Wanting Forward
Though the legislation doesn’t take impact till January 2025, freelancers and companies alike ought to begin making ready. Freelancers can start utilizing written contracts now to make sure compliance and set clear expectations with purchasers. Equally, companies that continuously rent impartial contractors ought to familiarize themselves with the brand new necessities to keep away from penalties or disputes down the road.
“The selection to freelance shouldn’t be a option to be exploited by your employer,” mentioned Senator Wiener, sponsor of the invoice. “As freelancers grow to be a larger and larger share of the labor market, it’s important that we develop protections to make sure this profession path is financially viable. This invoice offers these lengthy overdue protections, and I thank the Governor for championing the rights of working folks.”
“Impartial staff throughout all industries are drawn to California in pursuit of their goals. Sadly, circumstances of non-payment by purchasers make these goals tougher to pursue,” mentioned Rafael Espinal, Government Director of the Freelancers Union. “I commend the writer of this invoice, Senator Wiener, for his help and dedication to this important workforce. This laws will set up fee protections as the usual for all staff, offering a serious victory for the thousands and thousands of freelancers who play a major position in boosting the state’s economic system.”
California’s Freelance Employee Safety Act builds on the momentum of comparable laws nationwide. For the reason that adoption of New York’s “Freelance Isn’t Free Act” in 2017, freelancers there have reclaimed over $2.5 million in unpaid invoices. With California now setting related requirements, we anticipate a major optimistic impression for the state’s freelance workforce, and hope this motion continues to develop throughout the nation.
For extra particulars on the legislation, you possibly can learn the total invoice right here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB988
And in case you want any help making a contract, you should use our FREE contract creator right here: https://freelancersunion.org/contract/
