The Freelance Worker Protection Act: What Contractors Must Know
California’s Freelance Worker Protection Act, SB 988, creates written-contract and payment rules for covered freelance workers providing professional services. It is not a blanket rule that turns every construction subcontractor into a covered freelancer; the service and statutory definition matter.
At a glance
| Item | Current answer |
|---|---|
| Law | SB 988 Freelance Worker Protection Act |
| Core document | Written contract for covered professional services |
| Payment | Follow the contract date; statutory timing applies when the contract is silent |
| Records | Keep the contract, invoices, approvals, and payment record |
| Caution | Check whether the service fits the statutory definition before relying on the law |
Who should review the rule
A one-person business or organization providing qualifying professional services for at least $250, alone or aggregated with the same hiring party over the preceding 120 days, may fall inside the statutory definition. Construction work is not analyzed by job title alone. A licensed contractor should ask what service was promised, who controls the work, whether another statute applies, and whether the written agreement meets the law.
What the written contract should do
Use a plain description of the service, the compensation, the payment date or method for setting it, and the process for approving changes. Keep signed copies and invoices together. A clean contract makes it easier to show when the service was completed and what amount was due.
Payment and recordkeeping
The law addresses payment according to the contract and imposes timing rules when the agreement does not state a payment date. Do not assume a verbal promise is enough. Track delivery, acceptance, invoice date, due date, and actual payment. If the relationship is really employment, separate wage and classification rules may apply.
Context that changes the answer
SB 988 is a compliance prompt, not a substitute for legal advice. Keep the law separate from CSLB licensing: a written freelance contract does not authorize unlicensed contracting, and a CSLB license does not answer every labor-classification question. For a disputed classification or payment issue, consult a California employment or construction attorney.
How this connects to getting licensed
Use the CSLB Law and Business guide to strengthen contract, payroll, safety, and recordkeeping study. The combo packages can support the broader exam plan, but the legal question should be checked against the current statute.
FAQ
Does SB 988 cover every contractor?
No. Coverage depends on the statutory definition, the service, the parties, and the payment threshold. A construction professional should review the actual arrangement rather than rely on the label “freelancer.”
Does a written contract replace a contractor license?
No. Contract paperwork does not replace a required CSLB classification or license.
What records should I keep?
Keep the signed contract, scope, amendments, approvals, invoices, delivery or completion evidence, payment dates, and communications about changes.
Is this legal advice?
No. This is a contractor-facing compliance summary. Get advice for a particular employment, classification, or payment dispute.
Sources
Peerless Institute has helped Californians prepare for CSLB exams since 1953. The most useful next step is to use the resources listed here: combo-packages. Review the California contractor license roadmap before you schedule or apply.