Does California's new freelance protection law require a written contract?
The short answer
Yes — California's Freelance Worker Protection Act (SB 988), effective January 1, 2025, applies to contracts entered into or renewed on or after that date. It covers freelance workers — a person or one-person organization hired as a bona fide independent contractor to provide professional services as defined in Labor Code §2778 — where the work is worth $250 or more, in a single contract or aggregated across contracts with the same hiring party over the prior 120 days. The Act requires a written contract, with a signed copy provided to the freelance worker and retained by the hiring party for four years, and requires payment by the date the contract specifies or, if the contract does not specify one, no later than 30 days after completion of the services. Scan your agreement to see whether its written-contract and payment terms line up with what the Act requires.
Jurisdiction focus: CA — rules differ in other states.
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What the Freelance Worker Protection Act requires
SB 988 applies to contracts for professional services — as defined in Labor Code §2778 — between a hiring party and a freelance worker (a person or one-person organization acting as a bona fide independent contractor) where the value of the services is $250 or more, either under a single contract or aggregated across all contracts with the same hiring party during the immediately preceding 120 days. The Act applies to contracts entered into or renewed on or after January 1, 2025.
For covered engagements, the Act requires a written contract: the hiring party must provide a signed copy to the freelance worker and retain it for at least four years. Payment is due on or before the date the contract specifies or, if the contract does not specify a payment date, no later than 30 days after completion of the services. The Los Angeles Office of Wage Standards page adds local context: for contracts entered into on or after January 1, 2025, the City accepts Freelance Workers Protections Ordinance complaints only for eligible contracts not otherwise covered by the state law.
Why people worry
California freelancers who know the Los Angeles ordinance may not realize a statewide law now reaches most new professional-services engagements of $250 or more. The practical questions — does my engagement need a written contract, what must it include, and when must I be paid — are answered by the statute and by the agreement itself. A client who resists putting the engagement in writing is asking the freelancer to give up the Act's baseline protections.
What to look for in your agreement
- Whether the agreement is in writing and covers the services, the rate, and the payment terms.
- The contract date — the Act applies to contracts entered into or renewed on or after January 1, 2025.
- Whether the services are 'professional services' under Labor Code §2778, the definition the Act uses.
- A payment due date — if the contract sets none, the Act's 30-days-after-completion deadline applies.
- Whether the engagement meets the $250 threshold, alone or aggregated with other work for the same hiring party over the prior 120 days.
Questions to ask before signing
- Ask the client to put the agreement in writing before work begins and to send you a signed copy.
- Ask the other party to include a specific payment due date in the contract.
- Confirm whether the services fall within the professional-services definition the Act uses.
- Consider having the agreement reviewed if the payment terms are vague or the client is resistant to a written contract.
Why scan instead of guess
The general rule tells you the baseline. Your agreement tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
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Common questions
Where can I find the official CA SB 988 text?
The bill text is on the California Legislative Information site (leginfo.legislature.ca.gov) under SB 988 (2023–2024 session). The source list below links to it directly.
How does SB 988 interact with the LA city ordinance?
The LA OWS official page describes the interaction: for contracts entered into on or after January 1, 2025, the City will accept FWPO complaints only for eligible contracts not otherwise covered by state law. The statewide Act is now the primary layer for most new contracts.
Sources
- California SB 988 — Freelance Worker Protection Act (official bill text, California Legislative Information) · official source
- City of Los Angeles Office of Wage Standards — Freelance Workers Protections (official agency page; describes interaction with the state Act) · official source
- Sources last checked 2026-06-11. Laws and market practices change — confirm current rules before relying on them.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.