Los Angeles Updates Freelance Worker Protections Ordinance

With the California Freelance Worker Protection Act (FWPA) now in effect statewide as of January 1, 2025, the City of Los Angeles recently revised its Freelance Worker Protections Ordinance (FWPO) to clarify how the two laws interact. These updates are important for both freelance workers and hiring entities operating in or around Los Angeles.

Key Distinction: State vs. City Coverage

The FWPA is a statewide law that applies to contracts for "professional services" valued at $250 or more, entered into on or after January 1, 2025. "Professional services" are defined under California Labor Code Section 2778(b)(2) and include occupations such as:

• Graphic design
• Marketing
• Fine arts
• Consulting
• Photography
• And other specified fields

In contrast, the FWPO is not limited to contracts for "professional services," and applies more broadly to freelance workers who are hired to provide services within the City of Los Angeles, valued at $600 or more.

In light of the FWPA, Rule #3 of the Los Angeles FWPO was revised to clarify that the city's ordinance continues to apply in two specific scenarios:

1. Contracts entered before January 1, 2025:
   • Any freelance contract (oral or written) for work performed in the City of Los Angeles valued at $600 or more and entered between July 1, 2023 and December 31, 2024 remains under the jurisdiction of the city's ordinance.
2. Contracts entered on or after January 1, 2025 that are not covered by the FWPA:
   • This includes freelance work that does not fall under the "professional services" category defined by state law.
   • The work must still be performed within the City of Los Angeles and meet the $600 threshold.

Why This Matters

Understanding which law applies is essential for individuals and businesses engaging freelancers in Los Angeles. Hiring entities should pay close attention to ensure compliance with the correct set of rules based on the nature and location of the work. Los Angeles's FWPO offers specific safeguards, including mandatory written contracts for qualifying work, timely payment requirements, anti-retaliation provisions, and enforcement mechanisms such as civil action and administrative complaints. When a contract falls under the scope of the FWPA, however, those protections are governed by state law, which differs in terms of coverage, procedure, and enforcement standards.

Final Takeaway

The revised FWPO provides freelance workers in Los Angeles with several protections, even as California expands coverage statewide. The key is determining whether the work in question qualifies as "professional services" under the FWPA. If not, and if the work is performed in Los Angeles and meets the contract value threshold, then the city's ordinance may apply.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.