{"id":4794,"date":"2025-04-02T14:11:20","date_gmt":"2025-04-02T14:11:20","guid":{"rendered":"https:\/\/shegerianconniff.com\/?p=4794"},"modified":"2025-04-02T14:11:20","modified_gmt":"2025-04-02T14:11:20","slug":"new-freelance-worker-protections-in-2025","status":"publish","type":"post","link":"https:\/\/shegerianconniff.com\/dev\/new-freelance-worker-protections-in-2025\/","title":{"rendered":"New Freelance Worker Protections in 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">According to the Public Policy Institute of California, 11.5% of California\u2019s workforce report being self-employed, though some combine freelance work with a wage or salary position. Of the approximate 2.2 million who are self-employed, 1.4 million are independent contractors, which includes gig workers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While freelance work makes it much easier to adjust your schedule to fit your needs, it\u2019s also easy for freelancers to be taken advantage of. That\u2019s why California works hard to protect its freelance workers. If you\u2019re not aware of freelance worker protections and the new laws for 2025, <a href=\"https:\/\/shegerianconniff.com\/dev\/\">Shegerian Conniff<\/a> has the breakdown you need to understand your rights.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Introducing Senate Bill No. 988 \u2013 The Freelance Worker Protection Act (FWPA)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">On January 1, 2025, the FWPA went into effect. It requires freelancers and most independent contractors and hiring parties (clients) to have agreements in place that meet the law\u2019s rules.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s an expansion of existing laws that use the ABC Test to determine if someone is truly a freelance worker or should be classified as an employee. The new bill requires a contract to be on file for a minimum of four years, and those professional services must pay $250 or more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under the FWPA, payments for services must be paid by the specified date or at the beginning of the contract. If the contract doesn\u2019t specify a deadline for payment, the client must pay within 30 days from the completion of the work.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, there\u2019s a requirement that a contract be drawn up and include specific information. Once this contract is signed, it\u2019s enforceable. If a freelance worker cannot be penalized for opposing any illegal action, seeking to file a complaint because that worker\u2019s rights are being violated, or filing a lawsuit against the client for violating the contract.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Freelancers whose rights are violated can file a civil lawsuit, or a public prosecutor can file a lawsuit for the freelancer. Additionally, damages for the following can be included in that lawsuit.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two times the amount of unpaid compensation as detailed in the contract<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An additional penalty of $1,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Damages equal to the value of the contract or work performed, whichever amount is greater<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">FWPA doesn\u2019t apply to clients who are part of the U.S. government, a foreign government, the State of California or a subdivision of the State of California, or a family member. If you have questions about the FWPA, contact your <a href=\"https:\/\/shegerianconniff.com\/dev\/practice-areas-shegerian-conniff-law-firm\/\">Los Angeles employment attorneys<\/a> at Shegerian Conniff today.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">A Contract Is Legally Required<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You have a right to a written contract, and it\u2019s now backed by California law. That contract needs to protect your rights. Consider talking to an employment attorney to have a contract drafted. If you do it yourself or your client draws up a contract, make sure the contract includes the following.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Names and mailing addresses for both parties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The list of services to be provided including the fee\/rate for those services and how payment will be made.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The date when services are to be turned in, and how they\u2019re submitted or completed. The date needs to consider how long it takes accounting to verify and issue payment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The date when payment will be made.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once the contract is signed, the client cannot offer to pay faster if a discount is provided or add more work to the contract. If more work is needed, a new contract is required. If the client refuses to pay you because they want a discount as it took you less time than expected, that\u2019s not your problem. Suppose the client hired you to ghostwrite a children\u2019s book but decides you should also do the illustrations after the contract is signed, that\u2019s also a violation of the law and unenforceable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even without a contract, you can back up your claims if there was an oral contract or you have emails, text messages, and voicemails asking you to do the work for X amount. As long as there is an agreement made and you did the work as it was explained to you, you\u2019re protected.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to this information, independent contractors and other freelancers should consider a clause that discusses how disagreements are resolved. If you\u2019re tasked with painting an office building\u2019s lobby, and the manager tells you light yellow, but the CEO wanted beige. It\u2019s not your mistake, so you shouldn\u2019t have to repaint the lobby without a new contract and compensation.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Are You Truly a Freelance Worker?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">How do you know if you qualify as a freelance worker? The ABC Test is the first place to start. Can you answer \u201cyes\u201d to all three questions?<\/span><\/p>\n<p><strong>Are you free from the control and direction of the client when it comes to the work?<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">If you must log in and use company software to track that you\u2019re online and working between 9 a.m. and 5 p.m., you\u2019re not a freelancer. Freelancers make their own schedules.<\/span><\/p>\n<p><strong>Do you do work that\u2019s outside of the business or client\u2019s usual course of business?<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">A company cannot hire you to work as a freelancer if you\u2019re doing work that\u2019s the same as the business they run. For example, you make sourdough bread and a bakery hires you to make the bread for them in your home kitchen. They sell the bread from their bakery. You\u2019re in the same business, so you\u2019re not a freelancer. If you still have questions, your <a href=\"https:\/\/shegerianconniff.com\/dev\/about-our-employment-law-firm-shegerian-conniff\/\">Los Angeles employment lawyers<\/a> at Shegerian Conniff can help get you answers.<\/span><\/p>\n<p><strong>Are you a trade or occupation that\u2019s the same as the work you&#8217;re doing for the client?<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The work you take on as a freelancer must be the same as the business you promote. Suppose you\u2019re a bookkeeper and a new restaurant asks you to do their taxes. Tax preparation is outside of the restaurant\u2019s business expertise, but it is yours so you are a freelancer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s also a Bordello Test that can help determine if a worker is a contractor or paid employee. It\u2019s used when the situation is difficult to determine. The bottom line comes down to how much control the client has over where you do the work, when you do the work, and how you do the work. Bordello Test questions include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the work a necessary part of the client\u2019s business?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does the client supply the tools, instruments, and work area?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does the freelancer have the tools needed to do the job independently?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the work done with supervision or independently?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How long are the services being performed?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the pay by the job or hourly?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can the employer fire the worker at will or is there a contract?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is profit and loss under the control of the freelancer?<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Ask an Employment Discrimination Attorney for Guidance<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you\u2019re uncertain you\u2019re a freelancer or believe your client has violated your contract, talk to <a href=\"https:\/\/shegerianconniff.com\/dev\/contact-our-employment-law-firm-shegerian-conniff\/\">Shegerian Conniff<\/a>. Our attorneys offer free consultations and help you understand your rights and the next steps to take. Misclassifying workers as freelancers is a crime and clients face fines of up to $25,000 per violation. It\u2019s important to seek legal advice to ensure you\u2019re not being taken advantage of.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the Public Policy Institute of California, 11.5% of California\u2019s workforce report being self-employed, though some combine freelance work with a wage or salary position. Of the approximate 2.2 million who are self-employed, 1.4 million are independent contractors, which &hellip; <a href=\"https:\/\/shegerianconniff.com\/dev\/new-freelance-worker-protections-in-2025\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":4800,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-4794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Freelance Worker Protections in 2025 - Shegerian Conniff<\/title>\n<meta name=\"description\" content=\"If you\u2019re uncertain you\u2019re a freelancer or believe your client has violated your contract, talk to Shegerian Conniff.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Freelance Worker Protections in 2025 - 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