Freelance Business
California's freelance law and its powerful new protections.
SB-988, the Freelance Worker Protection Act, took effect January 1, 2025. Here is what it requires, and how it protects you.
Brendan Coots
SB-988 is California's Freelance Worker Protection Act, in effect since January 1, 2025. It requires a written contract for any freelance job worth more than $250, and it gives freelancers real teeth: up to double damages for late payment, recovery of attorney's fees, and rights-waivers that courts will not honor.
Does SB-988 require a written contract?
The law requires a written contract for any freelance project in California worth more than $250. SB-988 heavily implies that creating and managing the contract falls to the hiring party, but that is something I strongly recommend freelancers keep control of whenever possible.
Some people will be annoyed at being required to use a contract. I do not see it as a negative at all. Freelancers have almost no valid excuse not to use one, other than a client refusing, and this law removes even that objection by making the contract mandatory.
Complying is not hard. Per SB-988, the contract can be simple. It only needs the names and addresses of both parties, the dollar amount of each service item, plus the due dates for the freelancer to deliver and the client to pay.
Late payment is now treated as a serious civil matter.
What protections does SB-988 give freelancers?
By making contracts mandatory, SB-988 can offer protections that would be hard to enforce otherwise. With a written contract in place, courts can hold clients to a much higher standard. Among the law's provisions, these stand out:
Up to 2X damages if the client does not pay the agreed amount by the agreed date. That award makes it far more worthwhile to pursue a nonpaying client, and puts clients on notice that late payment is now a serious matter.
Recover attorney's fees and costs when you sue. This right is usually only available when a specific law grants it, and now one does for freelancers. It opens the door to hiring an attorney and filing a proper civil action, not just small-claims cases under $12,500.
No mid-project leverage. Once work has begun, the client cannot legally demand changes to the fee or deliverables as a condition of paying, or paying on time.
Full award for violations. Any violation of SB-988's rules by the hiring party can result in the freelancer being awarded the full agreed amount in civil court.
Waivers are unenforceable. If a client slips in a clause saying you waive your rights under this law, the court will not honor it.
There are more provisions in the bill, but the biggest benefit may be the deterrent effect on client behavior. You can read the full SB-988 text yourself, and Freelance Mentors members get access to legal toolkits that make compliant contracts easy.
Frequently asked questions
Which freelance jobs does SB-988 cover?
SB-988 covers any freelance project in California worth $250 or more, whether that is a single contract or several smaller ones with the same client inside a 120-day window. The freelancer has to be a bona fide independent contractor providing professional services. If your work clears that $250 line, the written-contract requirement and all the protections apply to you.
What has to be in the contract?
The contract has to be in writing and include a few specific things: the name and mailing address of both parties, an itemized list of the services with their value and the rate and method of payment, the date the client will pay (or how that date gets set), and the date you will deliver your work. Per SB-988 the contract can be simple, so there is no real excuse for skipping it. The hiring party also has to keep a copy for at least four years.
What can I recover if a client pays late?
If a client does not pay by the agreed date, you can recover up to twice the amount left unpaid. On top of that, a prevailing freelancer is entitled to reasonable attorney's fees and costs, which is what makes hiring a lawyer and filing a real civil action worthwhile instead of eating the loss. If the client refused to put the deal in writing at all, that is worth an additional $1,000.
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