Among dozens of new California employment bills, some break new ground

Governor Gavin Newsom has signed dozens of bills over the past few weeks that may affect your obligations as an employer. Here is a brief overview of some of the most significant ones, going into effect after January 1, 2025.

Bill summaries

Senate Bill (SB) 988: Freelance Worker Protection Act. The Freelance Worker Protection Act creates protections for individual, bona fide independent contractors who are paid at least $250. It requires a written contract, which the hiring party must retain for four years. Workers must be paid by the date stated in the contract or, if there is no contractual date, by 30 days after completion of services. The bill prohibits conditioning payment on accepting lower compensation or making changes to the contract. The hiring party is prohibited from retaliating against a worker for exercising their rights under the bill. Either the worker or a public entity may sue civilly for enforcement. The law requires a written agreement with each of your independent contractors that includes:

• Names and addresses of both parties;

• An itemized list of services, their value, and the compensation
method;

• Due dates for the freelance worker to report completed
services for payment; and

• Payment due dates or formula.

You will have to establish new processes and procedures to make sure you are in compliance with this new requirement.