Guide to the Los Angeles Freelance Worker Protections Ordinance
The Los Angeles City Council recently passed, with the approval of Mayor Karen Bass, the Freelance Worker Protections Ordinance, which provides protections for freelancers based in Los Angeles. It is also referred to as the Los Angeles “Freelance Isn’t Free Act,” and it is based on the New York Freelance Isn’t Free Act.
Read more about laws for freelancers and independent contractors in Los Angeles.
What does the Freelance Worker Protections Ordinance do?
- The law requires any agreement for work performed by a freelancer, valued at $600 or more, within the city of Los Angeles, to be set out in a written contract.
- The hiring party (the freelancer’s client) must pay the freelancer by the time specified in the contract. If there is no contract, or the contract doesn’t specify the time for payment, the freelancer must be paid within 30 days after services are performed.
The law is effective for agreements entered into on or after July 1, 2023. Note that the law only applies if the freelancer and the hiring entity are both based in Los Angeles.
What information must be included in the contract?
1. The name, mailing address, phone number, and, if available, email address of both the Hiring Entity and the Freelance Worker;
2. An itemization of all services to be provided by the Freelance Worker, the value of the services to be provided pursuant to the contract, and the rate and method of compensation; and
3. The date by which the hiring entity must pay the contracted compensation or the manner by which such date will be determined.
Can a freelancer waive their rights under this law?
No, a hiring party may not force a freelancer to waive their rights under this law, nor may a freelancer voluntarily waive their rights.
How is the law enforced?
If a hiring party violates any part of this law, a freelancer may file a complaint with the Los Angeles Office of Wage Standards (OWS), and also may file a lawsuit in court.
Filing a complaint:
The OWS is a department within the Bureau of Contract Administration, which is within the Department of Public Works (gotta love bureaucracy). Complaints to the OWS must be filed within 1 year of the violation. After a complaint is filed, the OWS will request information and/or documents from the hiring entity. If the hiring entity fails to respond to the request within 20 calendar days, the freelance worker is entitled to a rebuttable presumption in any subsequent civil action that the hiring entity committed the violations alleged in the corresponding complaint. In other words, it makes it much easier for the freelancer to win in court.
Filing in court:
If the freelance files a lawsuit in court, the following applies:
- If the hiring entity fails to pay the freelance worker the amount agreed to under the contract by the time specified, the freelance worker may be awarded money damages up to twice (2X) the amount that remains unpaid under the contract.
- If the freelance worker requested a written contract prior to commencing work under the contract, and the hiring entity refused, the freelance worker will be awarded an additional $250.
- If the hiring entity violates any other provision of the ordinance, the freelance worker will be awarded damages equal to the value of the contract or the work performed, whichever is greater.
Can the law be enforced against freelancers?
No, the law does not provide for enforcement against freelancers, only against the hiring party.
Can a hiring party retaliate against a freelancer for enforcing their rights?
No, a hiring party may not “discriminate or take any adverse action” against a freelance worker for enforcing this law.
Further Resources
Full text of Los Angeles Freelance Worker Protections Ordinance
