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:
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.
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