The Freelance Employee Safety Act is a big new invoice at present sitting on Governor Newsom’s desk, awaiting a signature or veto. Also called SB 988, the invoice is designed to safeguard the rights of freelance employees in California. Right here’s a breakdown of what this implies for freelancers and hiring events:
Who’s a Freelance Employee?
A contract employee is outlined as a “bona fide” unbiased contractor employed to offer skilled companies for $250 or extra. This consists of people or single-person organizations.
Key Necessities Embody:
- Well timed Fee: Hiring events should pay freelancers by the contract’s due date or inside 30 days of service completion if no date is specified.
- Written Contracts: All agreements should be in writing, detailing companies, compensation, and cost timelines. This contract should be retained for at the very least 4 years.
- Safety Towards Retaliation: Freelancers are shielded from discrimination or adversarial actions when asserting their rights below this legislation.
- Enforcement and Cures: Freelancers can take authorized motion if their rights are violated, with potential treatments together with legal professional’s charges, damages, and injunctive reduction. Failure to pay on time triggers a penalty of twice the unpaid compensation.
- Non-Waivable Rights: Any try and waive these rights is void and unenforceable.
Efficient Date:
If signed into legislation, the Act would apply to contracts entered into or renewed on or after January 1, 2025. California enterprise homeowners ought to preserve a watch out for standing modifications and evaluation their freelance contacts for compliance with the brand new legislation.