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Los Angeles Creates the Freelance Worker Protection Ordinance

11 Jul

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Update applicable to:

Hiring entities regularly engaged in business or commercial activity are subject to the ordinance, except for those hiring app-based transportation and delivery drivers

What happened?

Starting July 1, 2023, a new city ordinance called the Freelance Worker Protection Ordinance will be implemented in Los Angeles.

What are the details?

Similar to requirements in other cities, this ordinance mandates a written contract for many independent contractors and freelance workers operating within the city.

The ordinance covers freelance workers who perform work in Los Angeles but excludes those who are already required by law to have a written agreement, already classified as employees, agree to work for no pay, or are entities with employees other than the sole owner.

A written contract is required for freelance workers and hiring entities entering into agreements valued at $600 or more, specifying details such as contact information, services provided, compensation, and payment deadlines. The hiring entity must make full payment according to the contract or within 30 days if there is no specified due date. Records must be maintained for at least four years. Retaliation against freelance workers asserting their rights under the ordinance is prohibited. Violations can result in damages and potential legal action.

For more information, please see the links below:

Ordinance

Codified Law

Law Firm Summaries: Article 1, Article 2

What do employers need to do?

Employers should be cautious in utilizing freelance workers and seek legal guidance to ensure compliance with this new ordinance.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's California PEO services can help you navigate complex employment laws and keep your business compliant.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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