fact sheet

CALIFORNIA’S FREELANCE WORKER PROTECTION ACT (FWPA)

California Governor Gavin Newsome signed SB 988, the Freelance Worker Protection Act (FWPA), into law on September 28, 2024, with an effective date of January 1, 2025. The law imposes minimum contract requirements for private employers hiring independent contractors.

California’s New Freelancer Law, SB 988

California Governor Gavin Newsome signed SB 988, the Freelance Worker Protection Act (FWPA), into law on September 28, 2024, with an effective date of January 1, 2025. The law imposes minimum contract requirements for private employers hiring independent contractors.

*Under the FWPA a “freelance worker” is defined to be a person or organization of no more than one person.

key highlights

– Any person or organization in the state of California who engages *freelance workers for “professional services” totaling US $250 or more over the preceding 120 days, must have a written contract that includes specified information.

– Workers must be paid the contracted compensation by the date specified in the contract (or negotiated payment terms), or no later than 30 days after the completion of the freelance worker’s services under the contract.

– Contracts must also include party names and mailing addresses, an itemized list of services the worker will provide, the value and method of compensation for the services, and a date by which the worker must submit their invoice for services rendered.

– Copies of contracts must be retained under the FWPA for a minimum of four years.

– Hiring parties may not contract around or waive the requirements of the FWPA. Workers may file civil actions for violations of the FWPA.

– Unlike similar laws, CA’s FWPA will not apply retroactively.

what does this mean for you?

Navigating IC compliance can be complex and time-consuming, especially as new laws are passed. If you are a client of Atrium, you can rest assured that all independent contractors we engage on your behalf in and outside the state of California already have contracts that meet all the requirements.

Our tenure and experience position us as one of the top experts in regulatory compliance as it relates to your independent contractors. Through our proprietary compliance and risk mitigation technology, Atrium manages and addresses regulatory concerns and ensures that your program is always compliant.

Our proprietary IC compliance tool, Engagent™, is designed to account for all federal, state, and local IC classification laws and regulations. It updates in real-time to keep up with the constant changes so that you don’t have to, and our IC experts are available to provide guidance should any new legal updates affect you or your workforce.

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​*The information provided on this fact sheet does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available here are for general informational purposes only.

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