That contract must include:- Both parties’ names & addresses- Scope of work, rate, and payment terms- Payment due date (or how it’s determined)- When the freelancer must submit invoices

Key things to note:

– Keep each contract on file for 4 years- Pay by the contract date, or within 30 days if none listed- No pay cuts or “extra work” in exchange for on-time payment- Applies only to freelancers providing professional services — not trades, subs, or manual labor.

This new rule won’t change how you hire subcontractors — but if your company works with outside professionals (estimators, accountants, consultants, etc.), you’ll need to tighten up your paperwork before 2025.

As of January 1, 2025, California’s Freelance Worker Protection Act (FWPA / SB 988) requires written contracts for certain freelancers / independent contractors who provide professional services. CalChamber Alert+3Fisher Phillips+3rpnalaw.com+3

Here’s a quick rundown:

📋 What the FWPA requires

Applies to freelance workers (single-person entities) performing professional services (as defined in Labor Code § 2778) in contracts worth $250 or more (or aggregated over 120 days) Fisher Phillips+2rpnalaw.com+2

Contracts must be in writing (physical or electronic) and include:  • Names and addresses of both parties BakerHostetler+2Fisher Phillips+2  • Itemized list of services, their value, rate, method of compensation BakerHostetler+2Fisher Phillips+2  • Payment due date (or how date will be determined) Fisher Phillips+2BakerHostetler+2  • Deadline by which the freelancer should submit their invoice / services list so internal processing can occur BakerHostetler+2Fisher Phillips+2

The hiring party must keep the contract for at least 4 years BakerHostetler+2Fisher Phillips+2

Payment must be made by the contract date; if no date is specified, within 30 days after completion of services Fisher Phillips+2BakerHostetler+2

The hiring party cannot require the freelancer to accept reduced compensation or additional work in exchange for timely payment after work begins BakerHostetler+1

Rights under the FWPA cannot be waived (any waiver is void) BakerHostetler+1

⚠️ But — it’s not all independent contractors

The FWPA covers freelancers / independent contractors providing “professional services” — not all independent contractors (e.g. general laborers, trades, physical / non-professional services) CalChamber Alert+3Fisher Phillips+3BakerHostetler+3

It does not change the test (AB 5 / ABC test) for whether someone is an employee or independent contractor — that determination is still based on other labor code / case law rules. CalDIR+3BakerHostetler+3CalChamber Alert+3

So, in short: There is a law requiring written contracts, but starting January 1, 2025, and it applies specifically to freelancers / professional services, not all contractors.

If you like, I can check whether there’s a follow-on law scheduled for 2026 that expands this further (to trades, construction, etc.). Do you want me to dig that in?