The Graphic Designer's Guide to California's SB 988: How to Stay Compliant

What is SB 988 and Why Does It Matter?

SB 988, also known as the Freelance Worker Protection Act, is a California law that went into effect on January 1, 2023. It's designed to protect freelance workers, including graphic designers, from non-payment and other unfair practices.

For graphic designers, this means you have legal protections when working with clients, especially for projects worth $250 or more.

5 Mandatory Contract Clauses for Graphic Designers

Under SB 988, any project worth $250 or more requires a written contract with these mandatory clauses:

1. Identification of the parties: Clear names and contact information for both you and your client
2. Description of services: Detailed scope of work, including deliverables and deadlines
3. Compensation terms: Total compensation and payment schedule
4. Payment deadline: Specific date or timeline for payment (must be 15 business days or less)
5. Retention of intellectual property rights: Clear terms about who owns the creative work

Protecting Your Intellectual Property as a Designer

As a graphic designer, your intellectual property (IP) is your most valuable asset. SB 988 requires that contracts include clear terms about IP rights.

Here's what you should include in your contracts:

• Ownership rights: Specify whether you're transferring full ownership or retaining certain rights
• Usage rights: Define how the client can use your work
• Credit requirements: Whether you should be credited for your work
• Non-exclusive rights: Can you use the work in your portfolio?

Late Payment Penalties

One of the most powerful protections under SB 988 is the right to double damages for late payments. If a client pays you late, you may be entitled to twice the amount owed.

For example, if a client owes you $1,000 and pays 30 days late, you could be entitled to an additional $1,000 in penalties.

How to Generate SB 988-Compliant Contracts

Creating SB 988-compliant contracts from scratch can be time-consuming and confusing. That's why we built a specialized AI tool just for California graphic designers.

Case Study: A Graphic Designer's Experience with SB 988

Sarah, a freelance graphic designer in Los Angeles, was hired to create branding materials for a local startup. The project was worth $5,000, but the client refused to pay after receiving the final deliverables.

Because Sarah had an SB 988-compliant contract, she was able to take legal action and recover not just the $5,000 owed, but an additional $5,000 in late payment penalties.

This case highlights the importance of having a proper contract in place, especially for larger projects.

Key Takeaways for Graphic Designers

• Always use a written contract for projects worth $250 or more
• Include all 5 mandatory clauses required by SB 988
• Clearly define intellectual property rights in your contracts
• Know your rights regarding late payment penalties
• Use our specialized AI tool to generate compliant contracts quickly and easily

Frequently Asked Questions