Hiring freelancers? California now requires a written contract
Under the Freelance Worker Protection Act, hiring a solo freelancer for professional services worth $250 or more requires a written contract and on-time payment.
Reviewed by Laurence S. Bezinover · Published
What changed
When a business hires a sole proprietor or one-person business as an independent contractor for professional services worth $250 or more (counted over 120 days), the contract must be in writing (Bus. & Prof. Code § 18100 et seq.). It must list the parties, the services and their value, the rate and method of payment, the payment date, and the invoice deadline. Payment is due on the agreed date, or within 30 days after the work is done if no date is set, and the business must keep the contract for four years.
Why it matters
Remedies include $1,000 if the business refused a requested written contract, up to double damages for late payment, and attorney's fees. The law does not change whether a worker is properly classified as an independent contractor.
Questions to raise with counsel
- Does our freelance agreement template meet the new requirements?
- How do we make sure freelancer invoices are paid within 30 days?
- Are we keeping signed freelance contracts for four years?
Sources
This briefing is general information about California law, not legal advice for your situation. Reading it does not create an attorney-client relationship.