As broadcasters have looked at controlling expenses, many have expanded their use of contract employees. It is a trend that isn’t unique to radio, as more industries are embracing the freelancer option. But radio operators in California now have new laws on the books that put more requirements on how those arrangements will work beginning Jan. 1.
Under the recently signed Freelance Worker Protection Act, any freelancer performing over $250 of work for a company during a four month period is entitled to a contract outlining the scope of the work. Companies must pay their freelancers within 30 days of completion of work unless otherwise specified in the contract, and they cannot require that freelancers accept less than the contract stipulates in exchange for faster payment. If a freelancer doesn’t get paid and wins a case in court, the new law says they are entitled to damages equal to double the payment originally specified in their contract, plus costs and attorney’s fees.
The new requirements take effect with any new or renewed contracts between freelancers and employers starting on Jan. 1, 2025. New York and Illinois already have similar laws on the books, as do several cities, including New York City, Los Angeles, Minneapolis, Seattle and Columbus, OH.
The new law defines “freelance worker” as someone who “is hired or retained as a bona fide independent contractor by a hiring party to provide professional services in exchange for an amount equal to or greater than $250.” Those professional services under California labor law include a wide range of services, including people who “work in any format or media” providing the service is not directly replacing an employee who performed the same work.
California State Senator Scott Wiener (D-San Francisco) proposed the law (Senate Bill No. 988) and says freelancers shouldn’t be in a position where they could be exploited. “As freelancers become a greater and greater share of the labor market, it’s essential that we expand protections to ensure this career path is financially viable,” he says. “This bill provides these long overdue protections, and I thank the Governor for championing the rights of working people.”
Several labor unions came out in favor of the new law. According to the Freelancers Union, 71% of workers experienced late or non-payment and 59% report living paycheck to paycheck. Most do not have written contracts, as only 25% reported that they consistently have written contracts.
To ensure they comply with the law, attorneys say companies with California freelancers should identify any vendors that may be classified as “freelance workers” under the new law and review their contractor agreement to ensure required language is in place. Attorneys also say that any existing anti-discrimination and retaliation policies should also be updated to include protection for freelance workers.
Source: New Year Will Bring New Rules For California Stations Using Freelancers.
