Titan Law PLLC

Dateline: California (but you probably sensed that already). Now comes the latest Nanny State initiative, designed to replace basic business skills and common sense with a faceless, inefficient, and indifferent bureaucracy. Ladies and gentlemen, California’s Freelance Worker Protection Act (FWPA) [SB988] is now live—because nothing screams freedom quite like government-mandated hand-holding for people who specifically chose not to have a boss.

This shiny new law, which took effect on January 1, 2025, supposedly helps Golden State freelancers by requiring written contracts, timely payments, and a formal enforcement process through the state’s court system. Sounds great, right? Well, if you love unnecessary government involvement in your affairs, anti-retaliation mechanisms that only ensure lawyers get paid, and a guarantee that small businesses will think twice before hiring freelancers in the first place, then yes—it’s fantastic!

First, let’s talk about the core problem this law is trying to solve: freelancers not getting paid. No one likes doing work for free (except maybe interns and certain artists trying to “build their portfolio”), but let’s be real—if you’re a freelancer, you already know that written contracts are your best friend. And if you don’t know that, then maybe a government-mandated paperwork requirement and protracted litigation aren’t going to be the things that suddenly inspire you to get your business in order.

California’s FWPA requires that any gig worth $250 or more must come with a written contract. This contract needs to include the names and addresses of both parties, an itemized list of services, payment terms, and due dates for deliverables. Because nothing fosters creativity quite like paperwork, right? And let’s not forget the requirement to retain these contracts for at least four years. Who doesn’t love a good filing cabinet bursting at the seams?

Now, about those payment terms. The law mandates that freelancers must be paid by the date specified in the contract or, if no date is specified, within 30 days after completing the work. This sounds reasonable until you consider the administrative burden it places on small businesses. Imagine a startup juggling multiple freelancers, each with their own contract and payment schedule. One missed payment, and they’re potentially facing legal action. It’s almost as if the law is designed to discourage hiring freelancers altogether. Shocking!

And let’s not overlook the anti-retaliation provisions. Hiring parties are prohibited from discriminating against freelancers who assert their rights under the law. While this may be well-intentioned, it opens the door for freelancers to claim retaliation over any perceived slight. The result? Businesses will become hesitant to provide feedback or request revisions, fearing it could be construed as retaliation. So much for collaboration and improvement. Oh, and never use another freelancer again.

Speaking of legal action, California’s FWPA allows freelancers to bring a civil lawsuit against hiring parties who violate these provisions. Because nothing strengthens a professional relationship like the constant threat of litigation. Small businesses, already operating on thin margins, now have to factor in the potential cost of legal disputes. If the freelancer is successful in its suit, the small business will have to pay for the freelancer’s attorneys’ fees, bloated and ridiculous though they might be. It’s a wonder anyone would risk hiring a freelancer under these conditions.

Just so everyone knows that California is not breaking new (idiotic) ground here, New York passed its own FWPA in 2024, which is equally bad on every level, except that it adds another layer of insane government bureaucracy into the mix, by filing a complaint and seeking damages through the state’s Department of Labor. Sounds empowering! Until you consider that dragging a client through a bureaucratic complaints process at the Department of Labor—famous for its efficiency and speed—is a great way to ensure you’ll never work for them (or anyone they know) ever again. 

Of course, let’s not forget what these laws really accomplish: they discourage small businesses from hiring freelancers at all. Because now, instead of hiring someone for a quick gig, you have to worry about legal compliance, contract drafting, and the looming threat of state involvement if a payment is late. Small businesses—already drowning in regulations—might decide it’s easier to just… not hire freelancers. Great news for in-house employees! Bad news for, well, the freelancers this law is allegedly designed to help.

In the end, the FWPA (California or NY) is yet another classic case of government stepping in to “fix” something with a solution that creates more problems. Want to succeed as a freelancer? Learn to draft contracts, vet your clients, and demand deposits upfront like the rest of us. Because if you think a slow-moving government bureaucracy is going to get you paid faster than a solid contract and a well-timed “I’ll blast you on Twitter,” you may want to reconsider the whole self-employment thing.

Want more information about handling your own business with good contracts and protecting your professional reputation (so that people actually want to keep working with you)? Read our book – link below. Or, if you’re not the reading type, contact Titan Law PLLC at blog@titanlawny.com.

Want more great ideas about how to protect your freelance business? Check out our book at Amazon.