What is the 30-day payment rule for California contractors?

Under SB 988, clients must pay freelancers within 30 calendar days of the invoice date, or by a date specified in the written contract.

Can I negotiate a different payment timeline in the contract?

Yes — SB 988 allows a mutually agreed written payment schedule. However, it cannot waive the contractor's statutory rights.

What happens if I miss the 30-day payment deadline?

The contractor is entitled to statutory damages equal to the contract amount (double damages), plus attorney fees and costs.

⚖️ Employer Compliance

CA 1099 Contractor Agreement: 30-Day Payment Rule Explained

Deployed the code but the client went radio silent on the invoice? Under CA SB 988, software projects over $250 require a signed agreement. Protect your repositories and enforce double damages with this dev-focused template.

📋Written contract required for $250+

⏱️30-day payment deadline mandatory

🚫Cannot waive contractor's SB 988 rights

⚠️Violation = double damages + attorney fees

California SB 988 · Effective Jan 1, 2025

Minimum contract value that triggers SB 988$250+

Maximum payment window from invoice date30 days

Statutory damages on late payments2×

Statute of limitations for written contracts4 yrs

⚖️

Scan Your Freelance Contract for SB 988 Violations

Paste your current agreement or describe the engagement. Our AI flags every missing clause that exposes you to double-damage liability.

⚡Results in under 60 seconds

📋All 4 SB 988 mandatory clauses included

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Know the Law

California SB 988 — Plain English

📋

Written contract is mandatory

Any California freelance engagement worth $250 or more — individually or cumulative within 120 days — must have a written contract. An email chain counts only if it specifies parties, services, rate, and payment date.

📅

30 days to pay, no excuses

Once you submit an invoice, the client has 30 calendar days to pay — unless your written contract specifies a different date. There is no grace period. Day 31 onwards, double damages begin accruing.

💰

Late? You owe double.

If payment is late, the contractor is entitled to damages equal to the full unpaid amount — effectively doubling what the client owes. Plus reasonable attorney fees and court costs. This right cannot be waived by contract.

🔥 If they're 30+ days late, this is your move

Step 1 → Generate a formal SB 988 demand letter (states exact double-damage amount + 10-day response window).
Step 2 → If no response, file in California Small Claims Court (up to $12,500, no lawyer needed).
Step 3 → Present the demand letter as evidence — judge awards double damages automatically under SB 988.

Calculate My Double Damages →

Sample Language

Software Development Contract Template Preview

Did the client ghost you after code deployment or Git repository hand-off? Under SB 988, they cannot contractually waive your right to prompt payment.

Generate Full Version →

software-development-contract-sb988.txt● SB 988 Compliant

FREELANCE SOFTWARE DEVELOPMENT AGREEMENT
==================================================
This Engineering Services Agreement is drafted in strict compliance with the California Freelance Worker Protection Act (SB 988).

1. PARTIES:
   - Developer: [Your Name / Engineering Entity]
   - Client: [Client Entity / Name]

2. SCOPE OF WORK & INTELLECTUAL PROPERTY:
   - Scope: Frontend/Backend Software Development, API Integration, and Code Deployment.
   - IP Transfer: Full ownership of the production code and repository access transfers to the Client ONLY upon zero-balance clearance of the final invoice.

3. TOTAL CONTRACT VALUE:
   - Agreed Price: $[Enter Total Amount]
   - Payment Structure: [e.g., Retainer + Net-15 Net-30 Terms]

4. STATUTORY LATE PENALTY NOTICE:
   - Final payment is strictly due within 30 days of code hand-off or invoice presentation.
   - Any late payment authorizes the Developer to seek up to double the contract price plus formal attorney fees in California Small Claims Court under CA Civil Code SB 988.

↑ Preview only — full contract includes 12+ clauses

Generate Complete Contract →

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FAQ

Frequently asked questions

What is the 30-day payment rule for California contractors?: Under SB 988, clients must pay freelancers within 30 calendar days of the invoice date, or by a date specified in the written contract.
Can I negotiate a different payment timeline in the contract?: Yes — SB 988 allows a mutually agreed written payment schedule. However, it cannot waive the contractor's statutory rights.
What happens if I miss the 30-day payment deadline?: The contractor is entitled to statutory damages equal to the contract amount (double damages), plus attorney fees and costs.

Related Guides

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Employer Compliance

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