Independent Consultant Late Payment Protection in California — San Francisco
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.
California SB 988 · Effective Jan 1, 2025
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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.
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.
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.
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