You don’t need to be a California resident for SB 988 to protect you, as the new law includes freelancers who don’t live in California but are working with clients who do. However, if your freelancing business is based somewhere else, say Colorado, for example, and you’re dealing with a client in Montana, SB 988 does not apply in those situations — the client needs to be based in California.
Keep reading to learn how to best prepare for the state’s new laws for freelancers and their clients in 2025 and how this law SB 988 could impact you and your business.
Talking to freelance clients about a contract
It might feel unusual asking clients to sign a contract, especially if you’ve worked with them for a while.
But starting Jan. 1, California law will require freelancers and clients to establish some sort of contract that clearly establishes what work is being done and when it will be compensated. Contracts won’t be required in every situation: only if you’re offering professional service equal to or greater than $250. If you’re charging a client a lesser amount than that — let’s say for a single photo headshot — there’s no need to draft up a contract.
Your contract doesn’t need to be super complicated, either. According to the text of SB 988, a contract needs to include four things:
- The name and mailing address of both the freelancer and the client.
- An itemized list of all services provided by the freelancer, including the value of those services and how the client will make payment.
- The date when the client will pay the freelancer.
- The date when the freelance worker will submit a list of all the services they provided the client (e.g., an invoice).
“Freelancers should always have a contract,” said Tannor of the Freelancers Union, adding that having a contract isn’t just required by law — it also helps protect the freelancer’s labor and time. The Freelancers Union even has an online tool where you can easily create a contract that includes all the information required by SB 988.
Another option for a contract could be agreeing on the terms with your client over text message or email, but Tannor stresses that having an actual contract document — that both parties keep — can avoid any confusion in the future.
“At least in the beginning, a lot of people won’t know that this is the law,” she said — so Tannor recommends you raise SB 988 with your client first. For example, “you could say that you saw that this new law got passed, and that you want to make sure you’re dotting your I’s and crossing your T’s,” she said.
Once you have a contract signed by both your client and yourself, your client can still make additional requests from you — but make sure you document these new requests and how much more you will charge. “Make sure to keep records of all communication,” Tannor said. “If you’re taking a lot of Zoom meetings with the client, just reiterate what was stated over the call in an email to the client after.”
Making sure your client pays you
SB 988 requires that your client pays you the full agreed amount on the date you’ve both established on the contract. And if for whatever reason you and your client did not agree on a date while writing a contract, the law requires that you get paid no later than 30 days after completing your services.
But what if pay day comes and goes, and your client has still not paid you? You have two options:
1. Take your client to small claims or civil court
In small claims or civil court, you can demand up to double what your client owes you. To file a case, you’ll have to do so with your county courthouse. You don’t need an attorney for this process but a lawyer can provide insight unique to your case, especially if you have little documentation available from the work you provided.
Learn more about filing a small claims case in each Bay Area county:
Some counties, like Alameda, limit the amount a business can claim ($5,000) and the amount of claims filed per year. If the amount you’re owed exceeds what your county allows for in small claims court, you can consider talking to an attorney to explore other options, like a lawsuit against your client.
2. Report your client to the California Department of Justice
According to the office of State Sen. Scott Wiener, the author of SB 988, this new law makes it possible for freelancers to file a complaint directly with California Attorney General Rob Bonta — who can then investigate and initiate civil action proceedings.
However, the Attorney General’s Office would most likely step in when the situation involves a large employer that has repeatedly failed to properly pay its clients, Wiener’s office told KQED. You can reach out to the Attorney General’s Office using an online form.
Keep in mind that as a freelancer, you don’t have the option to file a complaint with other state watchdog agencies, like the Labor Commissioner’s Office, because as a freelancer, you’re not considered an “employee.”
Whichever option you choose, this is when you want to have easy access to the paper trail you’ve built with this client, including the contract, any invoices, emails and texts related to the work you’ve provided.
