Know your rights: freelancer payment laws

The one-sentence version

New York and California now give many freelancers a legal right to a written contract, a payment deadline (the contract date — or 30 days after you finish, if the contract doesn't say), and real remedies when clients don't pay — including double damages and attorney's fees.

One thing neither law does: set a late-fee rate. Late fees come from your contract, not from these statutes. That's why RestPaid only calculates fees after you confirm your contract includes them.

New York — Freelance Isn't Free Act

Statewide since August 28, 2024 (General Business Law Article 44-A, signed November 2023). New York City has had its own version since 2017, and it still applies there too.

Who's covered

Solo freelancers (including one-person companies) hired for $800 or more — either one contract or several with the same client over 120 days. A few professions are excluded (sales reps, attorneys, licensed medical professionals, construction contractors).

What you get

• A written contract listing the work, its value, the pay rate, and the payment date. The state publishes free model contracts.
• Payment by the contract date, or within 30 days of finishing the work if no date is set. Once you've started, a client can't demand a discount in exchange for paying on time.
• If they don't pay: double damages, injunctive relief, and attorney's fees in court. Contract-only violations carry $250 statutory damages; retaliation carries damages equal to the contract value. The Attorney General can also fine repeat offenders up to $25,000 for a pattern of violations.
• Complaints go to the New York Attorney General — the state Department of Labor's page links the complaint form.

Sources: GBL Article 44-A (statute text) · §1411 payment deadline · §1414 remedies · NYS DOL overview · signing announcement

California — Freelance Worker Protection Act

In effect since January 1, 2025 (SB 988, Business & Professions Code §§18100–18107).

Who's covered

Freelancers hired for professional services worth $250 or more, alone or aggregated across contracts with the same client over 120 days.

What you get

• A written, signed contract (the client must keep it at least 4 years and give you a copy).
• Payment by the contract date, or within 30 days of completing the work if the contract doesn't specify one.
• If they pay late: up to twice the unpaid amount in damages. If they refused to put the deal in writing when you asked: $1,000. Winning plaintiffs get attorney's fees and costs. Retaliation is prohibited.
• Enforcement is through the courts — you (or a public prosecutor) can sue directly.

Sources: SB 988 bill text · B&P Code §§18100–18107 (codified)

So where do late fees come from?

Your contract. A line like "Invoices unpaid after the due date accrue a late fee of 1.5% per month" is a normal, widely used term — but it only binds your client if it's part of the agreement they accepted. These state laws add deadlines and penalties for nonpayment; they neither grant nor cap contractual late fees.

That's the deal with RestPaid's fee engine too: it computes and communicates the fees your contract entitles you to (default 1.5%/month simple interest, or your own rate and grace period) — after you've confirmed your terms include them.

Practical playbook for getting paid

• Always get the contract in writing — in NY and CA it's your legal right.
• Put a payment deadline and a late-fee clause in every contract.
• Follow up early and consistently — politely at first, firmer over time. That part, RestPaid does for you.
• If a client simply won't pay: in NY, file with the Attorney General; in CA (and everywhere), small-claims court is cheaper and faster than most people expect, and these laws can add doubled damages and fees on top.