Freelance Worker Protection Act 2025: What California Freelancers Need to Know

As the gig economy continues to flourish in California, lawmakers have taken steps to ensure independent workers receive fair treatment and timely pay. The Freelance Worker Protection Act of 2025 (FWPA) is a landmark piece of legislation designed to close longstanding gaps in labor protections for freelancers, contractors, and other self-employed professionals.

This article breaks down what the new law means, how it works, who is covered, and what freelancers in California can do if a client fails to comply.

What Is the Freelance Worker Protection Act?

The Freelance Worker Protection Act (FWPA), which took effect on January 1, 2025, is modeled after similar laws in cities like New York but tailored to California’s expansive and diverse workforce. The law aims to protect freelancers from late payments, nonpayment, and contractual abuse by:

• Requiring written contracts for freelance work over $600.

• Setting a deadline for payment within 30 days of work completion (unless the contract specifies otherwise).

• Imposing penalties for nonpayment, retaliation, or failure to provide a contract.

Who Is Covered Under the FWPA?

The law applies to any individual or sole proprietor hired as an independent contractor (not an employee) who performs work in California for a client in California. Common examples include:

• Graphic designers

• Writers and editors

• Marketing consultants

• Web developers

• Videographers

• Photographers

• Translators

• Freelance paralegals

• Fitness trainers

Larger platforms like Upwork or Fiverr may not fall directly under the FWPA unless the client hiring the freelancer is based in California and meets the monetary threshold.

Key Protections Under the FWPA

1. Mandatory Written Contract

If a freelance project is worth $600 or more in a calendar year, the hiring party must provide a written contract. This contract must include:

• Names and addresses of both parties

• Itemized list of services

• Rate and method of compensation

• Due date for payment (or a mechanism to determine it)

If no due date is set, payment must be made within 30 days after the freelancer delivers the work.

2. Timely Payment Required

Clients who fail to pay on time face steep consequences, including:

• Statutory damages

• Legal costs

• Potential double damages (2x what’s owed) in court

3. No Retaliation

Clients are prohibited from retaliating against freelancers who assert their rights under this law. That includes threats, blacklisting, or canceling future work.

What Happens If a Client Violates the Law?

Freelancers have several legal tools available if a client fails to comply:

Filing a Complaint

The California Labor Commissioner’s Office now accepts formal complaints under the FWPA. Freelancers can file without needing a lawyer.

Small Claims Court

If the amount owed is under $12,500, freelancers can take the case to California Small Claims Court, which is designed for quick, low-cost resolutions without legal representation.

Civil Lawsuit

For higher amounts or more complex disputes, freelancers can hire an employment attorney and sue in civil court. Under FWPA, they can recover:

• The unpaid amount

• Liquidated damages

• Legal fees

How Clients Should Prepare

To stay compliant, California businesses and individuals who hire freelancers should:

• Always use written contracts

• Pay within 30 days unless the contract says otherwise

• Keep payment records for at least four years

• Never retaliate against a freelancer who asserts their rights

Legal Challenges and Tips for Freelancers

Even with the new law in place, enforcement can be tricky. Here’s what freelancers should keep in mind:

Keep All Documentation

Always save emails, contracts, invoices, payment records, and delivery confirmations. These are critical in proving your case.

Know Your Rights

Many freelancers hesitate to confront non-paying clients. Under this law, you have a right to be paid, and retaliation is illegal.

Consult an Attorney When Needed

If you’re owed a large amount or facing repeated nonpayment from a client, a California employment attorney can help you take decisive action.

Final Thoughts

The Freelance Worker Protection Act of 2025 is a major step forward in recognizing and protecting the economic contributions of independent workers across California. Whether you’re designing logos or writing code, this law ensures that your work is legally respected—and compensated.

If you’ve been denied payment for freelance work or need help drafting enforceable contracts, contact a licensed California employment attorney for a free consultation today.