LA City Extends Freelance Worker Protections

LA City Extends Freelance Worker Protections

On March 15, 2023, the Los Angeles City Council passed Ordinance No. 187782 (the “Ordinance”), which provides that any contract between a hiring entity and a freelance worker valued at $600 or more (either by itself or when aggregated with previous written or oral contracts between the hiring entity and the freelance worker in a calendar year) must be in writing. The Ordinance went into effect on April 24, 2023.  The requisite terms of the written contract are:  (1) the name, mailing address, phone number, and, if available, email address of both the hiring entity and the freelance worker; (2) itemization of all services to be provided by the 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.  A hiring entity must provide full payment to the freelance worker on or before the date specified in the written contract or, if the written contract does not specify a due date or if there is no written contract, no later than 30 calendar days after services are rendered.  Employers should consult with their labor counsel to ensure compliance with the Ordinance.