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California's Freelance Worker Protection Act (effective 2025): written contracts, pay-by-date rules and how to reference it in a payment reminder.
California's Freelance Worker Protection Act (SB 988) took effect on 1 January 2025. In broad terms, hiring parties engaging a freelancer for work of $250 or more must provide a written contract, pay on or before the date in the contract or within 30 days of completion if no date is set, and must not require extra work or accept less as a condition of timely payment. Remedies may include damages and attorney's fees. Los Angeles also has a local freelance ordinance. California small claims limits are $12,500 for individuals and $6,250 for most businesses (check the current figures).
This is a general summary that may be out of date. Not legal advice. Verify current rules on official government or court websites.
Subject: Overdue invoice [INV-123]: [amount] due [due date] Dear [Name], Invoice [INV-123] for [amount] for [services] was due on [due date] and remains unpaid despite my reminders of [dates]. Please pay the outstanding balance [plus interest/compensation permitted by law or our agreement: state the basis] by [date]. If payment is not received by then, I intend to [next step for this jurisdiction] without further notice. If you dispute any part of the invoice, please tell me in writing by that date. Regards, [Your name]
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Generate my sequence freeA contractual late fee may be enforceable if it is a reasonable estimate of damages; usury rules apply to interest. Ask a lawyer for high-value invoices.
Small claims court in the county where the client is located or where the contract was performed.
General information and draft wording only. Not legal advice. PaidNudge is not a law firm or a debt collector. Check your contract and local rules, or ask a qualified lawyer, before relying on any late fee, interest or court step.