As readers may know, the Los Angeles Freelance Worker Protections Ordinance took effect on July 1, 2023.  The new law imposes additional requirements on businesses in the City of Los Angeles who have contracts with freelance workers.

Perhaps most notably, for any contract between a hiring entity and a freelance worker valued at $600 or more, the contract must be in writing and include:

  • the name, mailing address, phone number, and email address of both the hiring entity and the freelance worker;
  • an itemization of all services to be provided by the freelance worker, the value of the services to be provided pursuant to the contract, and the rate and method of compensation; and
  • the date by which the hiring entity must pay the contracted compensation or the manner by which such date will be determined.

The ordinance defines a “freelance worker” as a natural person or an entity hired or engaged as a bona fide independent contractor to perform services for a “hiring entity” in exchange for compensation.  A “hiring entity” is an entity regularly engaged in business or commercial activity, including owning or operating a trade or business, a non-profit business, or an entity that represents itself as engaging in any trade or business.

The ordinance also creates a new gap-filler provision regarding timing of payment and imposes new recordkeeping requirements on hiring entities and freelance workers alike.  If the written contract does not provide a due date, or if there is no written contract, a freelance worker must be fully paid no later than 30 calendar days after services are rendered.  Additionally, freelance workers and hiring entities must each retain written records related to this ordinance for no less than four years, including contracts, payment records, and any other written or electronic records to demonstrate compliance with the ordinance.

Despite the ordinance’s broad reach, some enumerated parties are excluded from coverage.  Notably, the ordinance does not apply to entities that hire app-based transportation and delivery drivers to provide prearranged services.  Additionally, the ordinance excludes any freelance worker that: (1) is already required by law to have a written agreement to provide services in exchange for compensation; (2) is already an employee of the hiring entity; (3) agrees to perform services for the hiring entity at no pay; or (4) has employees other than the one individual natural person who is the sole legal and beneficial owner.

The ordinance prohibits employers from retaliating against any freelance workers for exercising rights under the new law or for opposing any practice banned by the ordinance.  The ordinance also imposes additional damages and remedies, including attorney’s fees and costs.

Employers who hire independent contractors should examine their related policies and practices carefully and consult with counsel.

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Photo of Jonathan Slowik Jonathan Slowik

Jonathan Slowik represents employers in all aspects of litigation, with a particular emphasis in wage and hour class, collective, and representative actions, including those under the Private Attorneys General Act (PAGA). He has defended dozens of class, collective, and representative actions in state…

Jonathan Slowik represents employers in all aspects of litigation, with a particular emphasis in wage and hour class, collective, and representative actions, including those under the Private Attorneys General Act (PAGA). He has defended dozens of class, collective, and representative actions in state and federal trial and appellate courts throughout California and beyond. In addition to his core wage and hour work, Jonathan has defended employers in single-plaintiff discrimination, harassment, and retaliation cases, and in labor arbitrations. Jonathan also regularly advises clients on a wide range of compliance issues and on employment issues arising in corporate transactions.

Jonathan has deep experience representing clients in the retail and hospitality industries, but has assisted all types of clients, including those in the health care, telecommunications, finance, media, entertainment, professional services, manufacturing, sports, nonprofit, and information technology industries.

Jonathan is a frequent contributor to Proskauer’s California Employment Law Blog and has written extensively about PAGA on various platforms. He has been published or quoted in Law360, the Daily Journal, the California Lawyer, the Northern California Record, and the UCLA Law Review.

Jonathan received his B.A. from the University of Southern California in 2007, magna cum laude, and J.D. from UCLA School of Law in 2012, where he was a managing editor of the UCLA Law Review.

Photo of Michelle Lappen Michelle Lappen

Michelle Lappen is an associate in the Labor & Employment Department and a member of the Employment Litigation & Arbitration Group. Her practice addresses a wide range of labor and employment issues, including matters involving alleged discrimination, harassment, retaliation, wage-and-hour issues, whistleblowing and…

Michelle Lappen is an associate in the Labor & Employment Department and a member of the Employment Litigation & Arbitration Group. Her practice addresses a wide range of labor and employment issues, including matters involving alleged discrimination, harassment, retaliation, wage-and-hour issues, whistleblowing and wrongful termination. Michelle has represented clients in a variety of industries, including entertainment, healthcare, financial services, professional services and technology.

Michelle has defended nationwide employers in connection with complex, overlapping wage-and-hour class and representative actions. Michelle also has defended single-plaintiff discrimination, harassment, retaliation and wage-and-hour cases in both arbitration and state and federal courts. Michelle has comprehensive experience in litigation, including propounding and responding to written discovery, defending depositions, drafting dispositive motions and managing preparation for trial. In addition to Michelle’s employment litigation practice, she advises clients on various employment issues, including litigation avoidance, pay data reporting and compliance with federal, state and local laws.

Michelle earned her J.D. from Columbia Law School, where she was an articles and submissions editor for the Columbia Journal of Law & the Arts. She also served as a teaching fellow for the Advanced Negotiation Workshop and advocated for state and federal legislation as a clinical student in the Columbia Law Health Justice Advocacy Clinic.

Michelle was selected to be a Protégée for Proskauer’s Women’s Sponsorship Program, an initiative for high-performing, midlevel associates that champions future leaders. She also serves as a member of the Firm’s Summer Program Committee.