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The Freelance Employee Safety Act, an iteration of “Freelance Isn’t Free”, was signed into regulation by Governor Gavin Newsom on September twenty eighth, 2024. This laws, which was authored by Senator Scott Wiener, supplies protections for unbiased contractors who work for a hiring entity positioned in California.
Although freelancing represents a vital a part of California’s economic system, the prevalent situation of non-payment stays, reflecting a rising want to guard this very important workforce sector. In 2022, 60 million Individuals 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 cost programs has lengthy been a serious situation.
California’s Freelance Employee Safety Act instantly addresses these issues by requiring written contracts for freelance providers valued at $250 or extra. These contracts should define the scope of labor, cost technique, deadlines, and different essential particulars—making certain transparency and equity from the beginning. Right here’s what you could know in regards to the regulation:
Key Definitions:
- Hiring Occasion: an individual or group within the State of California that retains a contract employee to supply skilled providers (excl federal, state, native, or overseas governments or people hiring providers for the non-public advantage of themselves, their relations, or their homestead).
- Freelance Employee: an individual that’s employed or retained as a bona fide unbiased contractor by a hiring get together to supply skilled providers in trade for $250 or extra (aggregating all contracts between the identical hiring get together in 120 days).
- Skilled providers: has the identical that means as that supplied beneath AB 5 and contains providers reminiscent of advertising, human sources, journey agent providers, graphic design, grant writing, tremendous artistry, pictures, videography, picture 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 providers, deadlines, compensation charges, and cost strategies.
- 30-Day Cost Phrases: Freelancers are entitled to cost 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 cost.
- Anti-Retaliation Protections: Freelancers are protected against any retaliation by hiring entities in the event that they assert their proper to honest cost beneath the regulation.
- 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 regulation.
What Does This Imply for California Freelancers?
Freelancers will quickly have the ability to function with better safety, realizing 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 comparable legal guidelines, California freelancers will now have the ability to implement fundamental rights with extra confidence.
Wanting Forward
Though the regulation doesn’t take impact till January 2025, freelancers and companies alike ought to begin getting ready. Freelancers can start utilizing written contracts now to make sure compliance and set clear expectations with shoppers. Equally, companies that often rent unbiased 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,” stated Senator Wiener, sponsor of the invoice. “As freelancers change into a better and better share of the labor market, it’s important that we develop protections to make sure this profession path is financially viable. This invoice supplies these lengthy overdue protections, and I thank the Governor for championing the rights of working individuals.”
“Unbiased employees throughout all industries are drawn to California in pursuit of their desires. Sadly, instances of non-payment by shoppers make these desires tougher to pursue,” stated Rafael Espinal, Govt Director of the Freelancers Union. “I commend the creator of this invoice, Senator Wiener, for his help and dedication to this significant workforce. This laws will set up cost protections as the usual for all employees, offering a serious victory for the tens of millions of freelancers who play a big position in boosting the state’s economic system.”
California’s Freelance Employee Safety Act builds on the momentum of comparable laws nationwide. Because the 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 comparable requirements, we anticipate a big optimistic impression for the state’s freelance workforce, and hope this motion continues to develop throughout the nation.
For extra particulars on the regulation, you may learn the complete invoice right here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB988
And in the event you want any help making a contract, you should use our FREE contract creator right here: https://freelancersunion.org/contract/
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