Good news, LA freelancers! We want to share exciting news with you that directly impacts the vibrant independent community in the City of Angels.
It often takes weeks to months for an invoice to be paid if any payment comes at all and freelancers have virtually no recourse when they run into trouble.
In a city founded on creative workers and a country that celebrates independence, it shouldn’t be.
Recognizing the need for stronger protections.
We approached City Councilman Bob Blumenfield to introduce the Freelance Worker Protection Ordinance (FWPO), or as we like to call it, Freelance Is’t Free.
After two years of working with the Los Angeles City Council, the FWPO went into effect on July 1, 2023. The goal of this groundbreaking law is to ensure that freelancers in Los Angeles are treated fairly, promptly compensated, and given the rights they deserve.
According to Freelance Isn’t Freelancers, defined as individuals or entities composed of no more than one person.
If they are hired by a recruiting entity to provide services in exchange for compensation.
It is important to note that freelancers covered by the Act should not have any employees themselves. Entities hiring employees, on the other hand, should regularly engage in business or commercial activity, with the exception of those hiring app-based drivers for transportation or delivery services.
Importantly, both the freelancer and the hiring entity must be based in the city of Los Angeles.
This legislation requires contracting parties to provide written contracts for agreements valued at $600 or more.
They are individual contracts or cumulative contracts entered into during a calendar year. This ensures clarity and transparency regarding working conditions.
Freelancers are also entitled to a $250 reward if the recruiting party refused to provide a written contract upon request.
Once the city attorney drafts a new law, sometime after the summer break, we’ll still have some work to do.
The current proposed language would only apply to freelancers who work within the LA city limits. We contested this at the hearing and the committee took note of it.
Similar to the minimum wage law, a Los Angeles-based company cannot pay a lower rate to a driver whose regular route is outside the city limits.
Also, if non-LA freelancers are left unprotected, it could serve as an incentive for bad players to only use non-LA freelancers, costing LA freelancers a lot of work.
These wins are significant and can put millions of dollars in the pockets of freelancers across the country. As of 2017, NYC Law has already raised millions of dollars for thousands of freelancers.