California Gov. Gavin Newsom on Sept. 28 signed a new bill into law aimed at protecting freelancers in the state.

Under the Freelance Worker Protection Act:

• Mandatory contracts are required for any freelancer performing more than $250 of work for a hiring entity over a four-month period. The contracts must include scope of the work expected, rate of pay and method of payment.
• Clients must pay freelancers within 30 days of completion of work unless otherwise specified in the contract.
• Clients cannot require freelancers to accept less than the contract stipulates in exchange for faster payment.
• Freelancers who are victims of nonpayment are entitled to damages equal to double the payment originally specified in their contract plus costs and attorney’s fees.

“As freelancers become a greater and greater share of the labor market, it’s essential that we expand protections to ensure this career path is financially viable,” California state Sen. Scott Wiener, D-San Francisco, the bill’s author, said in a press release. “This bill provides these long overdue protections, and I thank the governor for championing the rights of working people.”

Wiener cited research from Upwork in his press release that found the number freelancers in the Use rose to 60 million and that freelancers contributed $1.35 trillion to the US economy in 2022.

The law, also known as SB 988, was lauded by several groups, including the Teamsters union.

“The Freelance Worker Protection Act not only establishes a new standard for safeguarding freelancers, but it also closes loopholes to combat pervasive wage theft,” Chris Griswold, president of Teamsters Joint Council 42, said in Weiner’s press release. “SB 988 sends a clear message to greedy employers that freelance workers deserve the same dignity and fair wages as everyone else.”