The City of Los Angeles’ Freelance Workers Protection Ordinance (“FWPO”) Model Contract was recently issued. Use of the model contract is not required, but it serves as a useful helpful blueprint for those seeking to comply with their obligations under the FWPO.
Obligations Under the Freelance Workers Protection Ordinance:
The FWPO prescribes basic protections for freelance work performed in the City of Los Angeles. The FWPO applies to any written or oral contract between a freelance worker and a hiring entity entered into on or after July 1, 2023 and to any work performed within the City by a freelance worker for the same hiring entity valued at $600 or more in a calendar year.
Written Contracts Required for Freelance Work Over $600: The FWPO requires that any contract for freelance work valued at $600 or more – either on its own or when aggregated with previous contracts between the same parties in a calendar year – must be in writing and include:
- The name and contact information of both the hiring entity and the freelance worker;
- An itemization of all services to be provided, the value of the services, and the rate and method of compensation; and
- A set payment date or an explanation of the manner by which the payment date will be determined.
Default Payment Deadline for All Freelance Contracts: The FWPO requires that full payment must be made on or before the date specified in a written contract. If a written contract does not specify a payment deadline or in instances where there is no written contract (such as an oral contract valued under $600), the FWPO establishes a default payment deadline of no later than thirty (30) calendar days after services are rendered.
Recordkeeping Requirements: Both the hiring entity and the freelance worker must retain written records related to the FWPO, including contracts and payment records, for at least four (4) years.
Retaliation Prohibited: Hiring entities are prohibited from retaliating against freelance workers for seeking to enforce their rights under the FWPO.
Violations and Enforcement: Freelance workers have up to one year to file a complaint with the Bureau of Contract Administration, Office of Wage Standards, for alleged violations of the FWPO. Freelance workers may also pursue a civil action in court and seek damages, including twice the unpaid amount (for late payment) and a $250 fine (for refusal to provide a written contract when required and requested to do so).
The Model Contract:
The model contract provides a blueprint for complying with the FWPO’s requirements for freelance contracts. In particular, the model contract incorporates the elements required for written contracts for work valued at $600 or more and includes payment terms designed to comply with the FWPO’s payment rules.
The model contract provides a helpful starting point for those seeking to engage freelance work in the City of Los Angeles. However, it is important to ensure that any contract used not only complies with the basic requirements of the FWPO, but that it also contains terms and conditions that reflect your own unique needs.
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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.
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