California Freelance Worker Protection Act: Essential Compliance Guide for Hiring Parties in 2025

By: Meagan Guzman. Originally posted on the TCWGlobal blog.

Not one to be left behind, California has followed New York, Illinois and others in providing greater protection for Independent Contractors (otherwise referenced in the FWPA as a “Freelance Worker(s)”) through the Freelance Worker Protection Act (FWPA), effective January 1, 2025. The FWPA requires that a written contract from the “hiring party” be provided to the Freelance Worker outlining a number of very specific terms and conditions. Specifically, the following must be addressed:

1. The contracting parties’ names and mailing addresses
2. An itemized description and/or list of the services that the Freelance Worker will provide and the fee or method of compensation.
3. The date by which the hiring party must issue payment for serviced rendered, or if no specific date, then a mechanism by which the payment date will be determined.
4. The date that the Freelance Worker must submit an invoice by to ensure payment.

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The law also requires the hiring party to provide timely payments, in accordance with the contract’s terms for payment. Full payment must be made by the date specified in the contract if on a deliverable basis, or within 30 days after the work has been completed if no date is specifically set forth in the written contract.

Further the Freelance Worker is protected from retaliation or discrimination when they exercise o r attempt to exercise any of their rights under this law for their protection.

So, who is a Freelance Worker, protected under the FWPA?

The law defines Freelance Worker as a person or organization (of no more than one person) hired as an independent contractor to provide professional services for at least $250. Essentially, anyone that qualifies as an independent contractor for the hiring party and earns more than $250 per project is protected by the FWPA.

Hiring Party has a broad definition and can be any individual or organization in California retaining a Freelance Worker to provide services since there is no size threshold associated with the definition. These hiring parties will now be responsible for the administrative burdens of the FWPA’s contract and record keeping requirements.

TCWGlobal is here to help alleviate that burden for hiring parties, by providing a complete Independent Contractor analysis for our clients and handling the entire contracting process to ensure compliance regardless of the location you need to engage talent. To learn more about the nuances of utilizing Independent Contractors throughout the United States and abroad, visit our Compliance Hub for some great resources. For more information on our IC services, please reach out to [email protected] or 858-810-3000.