Tech Contractor Double Damages Claim (California SB 988) — Los Angeles
California SB 988 entitles you to damages equal to your unpaid invoice — doubling your recovery — plus attorney fees.
California SB 988 Requirements Overview
Under the California Freelance Worker Protection Act (SB 988), all business-to-freelancer agreements valued at $250 or more must be in writing. The contract must be executed prior to commencing work, and final payments must be cleared within 30 days of invoice receipt, unless a mutual written timeline is specified.
Key Legal Notice:
- Failure to provide a written contract is a direct statutory violation.
- Hiring parties who pay late face double damages and attorney fee liabilities.
- SB 988 rights cannot be waived by any contractual clauses.
Web Developer SB 988 Contract Template
Review and copy this basic statutory template text. It contains the strict boilerplate language required by the State of California, customized specifically for freelance web developers.
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.
Frequently Asked Questions (FAQ)
Q: Does SB 988 apply if the project is under $250?
A: No, the written contract requirement under the Freelance Worker Protection Act triggers at $250. However, verbal contracts are still legally binding for smaller projects under general contract law.
Q: Can clients pay late if we agree to it verbally?
A: No. Unilateral delays are illegal. Any modified terms must be agreed in a signed written contract. The default payment deadline is 30 days if the contract does not specify a date.
Q: How can I enforce my rights if a client refuses to pay?
A: Under SB 988, you can send a formal statutory demand letter, file a complaint with the California Labor Commissioner, or sue for double damages in Small Claims Court.