Do I need a written contract if I have an independent contractor working for me?

In California, the relationship between businesses and independent contractors is subject to strict legal standards. One is employers are required to have a written contract with certain types of independent contractors .

The Freelance Worker Protection Act (FWPA) establishes specific requirements for businesses utilizing freelance workers who provide “professional services” as defined in Labor Code Section 2778. It applies to agreements for services valued at $250 or more, covering roles like freelance writers, content contributors and other professionals identified in the Labor Code.

Contracts falling under the FWPA must be in writing and include key details, such as the names and addresses of the parties, an itemized list of services, their value, compensation method and payment information, including due dates.

Payment must be made on the date specified in the contract or no later than 30 days after the completion of services. Once a freelance worker begins providing services, the hiring entity cannot demand additional work or reduced compensation as a condition for timely payment.

In addition, the law prohibits discrimination or retaliation against individuals exercising their rights under the FWPA.

Read more about Independent Contractors in the HR Library.