How to Sue a Client for Nonpayment as an Independent Contractor in CA
Clients ghosting you before signing off on the final brand assets? California's SB 988 law makes written contracts mandatory for design projects over $250. Use our curated, industry-specific template below to lock in your 2x late payment protection.
California SB 988 · Effective Jan 1, 2025
Client Won't Pay? Draft Your SB 988 Demand Letter
Paste your invoice or describe the situation. Our AI generates a formal California demand letter citing the 30-day rule and double-damage remedy — ready to send in minutes.
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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
Design Contract Template Preview
Never transfer Figma project ownership or deliver final high-res source files before the final invoice clears. Under SB 988, you hold statutory leverage.
FREELANCE GRAPHIC DESIGN SERVICES AGREEMENT
==================================================
This Agreement is entered into by and between the Creative Service Provider ("Designer") and the Client specified below.
PURSUANT TO CA CIVIL CODE (SB 988 - Freelance Worker Protection Act):
1. PARTIES:
- Designer: [Your Name / Studio Name]
- Client: [Client Company / Name]
2. DESCRIPTION OF SERVICES & DELIVERABLES:
- Scope: UI/UX Design, Brand Identity Assets, Vector Graphics, and custom design layouts.
- Source Files: Final high-resolution assets and project source files (e.g., Figma .fig, Adobe Illustrator .ai) will remain the property of the Designer until the final invoice is paid in full.
3. VALUE & COMPENSATION:
- Total Project Value: $[Enter Contract Value - Must be $250+ for SB 988 protection]
- Milestone Terms: [e.g., 50% Upfront / 50% Upon Approval]
4. STRICT PAYMENT DEADLINE:
- Pursuant to California SB 988, Client must issue final payment within 30 days of invoice receipt.
- Failure to pay timely constitutes a statutory violation, triggering mandatory double damages, collection costs, and reasonable attorney's fees in California courts.Pricing
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FAQ
Frequently asked questions
- What is the limit for Small Claims Court in California?
- Individuals can sue for up to $12,500 in California Small Claims Court. Businesses are limited to $6,250 per claim.
- Do I need a lawyer to sue in Small Claims Court?
- No — attorneys are not allowed to represent parties in California Small Claims Court. You represent yourself, which is where AI-generated document prep helps most.
- Can I claim double damages in Small Claims Court under SB 988?
- Yes. SB 988 statutory damages (equal to the unpaid amount) can be combined with your original invoice claim in Small Claims proceedings.
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