California Expands Protections for Freelance Workers

Effective January 1, 2025, companies using freelance workers must comply with the Freelance Worker Protection Act (“FWPA”). FWPA was signed by Governor Newsom on September 28, 2024 as Senate Bill (“SB”) 988. FWPA passed with a 70-0 vote in the State Assembly and a 34-3 vote in the State Senate.

According to a press release by one of the bill’s authors, State Senator Scott Weiner, freelance workers make up 39 percent of the total U.S. workforce and contribute $1.35 trillion to the economy. Additionally, only 25 percent of freelance workers reported having written contracts.

FWPA applies to contracts entered into or renewed on or after January 1, 2025. FWPA defines “freelance worker” as a person hired as an independent contractor to provide professional services of $250 or more within a 120 day period. FWPA defines a hiring party as any person or organization that retains a freelance worker to provide professional services, except government entities and individuals…