SACRAMENTO – Governor Newsom signed Senator Scott Wiener’s (D-San Francisco) Senate Bill 988, the Freelance Worker Protection Act. SB 988 provides basic labor protections for freelance workers, such as the right to be paid on time and in full.
“The choice to freelance shouldn’t be a choice to be exploited by your employer,” said Senator Wiener. “As freelancers become a greater and greater share of the labor market, it’s essential that we expand protections to ensure this career path is financially viable. This bill provides these long overdue protections, and I thank the Governor for championing the rights of working people.”
Freelancing is a rapidly growing and crucial sector of the economy. In 2022, 60 million Americans freelanced, making up 39% of the total workforce and contributing $1.35 trillion to the national economy.
Most freelancers lack basic worker protections, most notably, the right to be paid for their work on time. According to the Freelancers Union, 71% of workers experienced late or non-payment. 59% report living paycheck to paycheck. Most do not have written contracts, as only 25% reported that they consistently have written contracts.
The Freelance Worker Protection Act provides basic protections, including:
- Mandatory contracts: Any freelancer performing over $250 of work for a hiring entity over a four month period is entitled to a contract outlining the scope of the work expected, the rate of pay, and the method of payment.
- 30-day payment terms: Clients must pay their freelancers within 30 days of completion of work unless otherwise specified in the contract.
- Payment agreement protections: Clients cannot require that freelancers accept less than the contract stipulates in exchange for faster payment.
- Anti-retaliation: Clients cannot retaliate against freelancers for pursuing payment.
- Double Damages: Freelancers who are the victim of non-payment are entitled to damages equal to double the payment originally specified in their contract, plus costs and attorney’s fees.
“There is no denying the rapid growth of freelancing across all industries, yet most freelancers find themselves without basic worker protections,” said Chris Griswold, President of Teamsters Joint Council 42. “The Freelance Worker Protection Act not only establishes a new standard for safeguarding freelancers, but it also closes loopholes to combat pervasive wage theft. SB 988 sends a clear message to greedy employers that freelance workers deserve the same dignity and fair wages as everyone else. We thank Senator Wiener for his leadership and to Governor Newsom for making this law.”
“The National Writers Union and the coalition of freelance writers, media workers, photographers, graphic artists, authors and others, want to thank Governor Newsome, Senator Wiener, the CA State Senate and Assembly for passing and signing the needed protections of the Freelance Worker Protection law,” said Larry Goldbetter, President of the National Writers Union. “We make up almost 40% of the workforce, contributing $1.35 trillion to the national economy, yet over 70% of freelancers experience late payment or no payment at all. California now joins New York State and Illinois in providing a huge number of independent contractors the protections we deserve, laying the basis for federal legislation and the protections enjoyed by millions of US workers. We are especially grateful to the California Teamsters Public Affairs Council, the National Press Photographers Association, the Media Guild West (New Guild-CWA), the Freelancers Union, the Authors Guild, and other allies who joined in this campaign.“
“Independent workers across all industries are drawn to California in pursuit of their dreams. Unfortunately, cases of non-payment by clients make these dreams harder to pursue,” said Rafael Espinal, Executive Director of the Freelancers Union. “I commend the author of this bill, Senator Wiener, for his support and dedication to this crucial workforce. This legislation will establish payment protections as the standard for all workers, providing a major victory for the millions of freelancers who play a significant role in boosting the state’s economy.”
“The National Press Photographers Association applauds the passage into law of the California Freelance Worker Protection Act. This act will provide valuable tools to hardworking independent journalists in California to protect their small businesses and family income from clients who fail to pay,” wrote Carey Wagner, president of the National Press Photographers Association. “We are grateful to Senator Weiner for sponsoring the bill, and to Governor Newsom for signing it.”
SB 988 is sponsored by the California Teamsters Public Affairs Council and the National Writers Union.