A new city ordinance in Los Angeles requires that all independent contractors and self-employed workers working within the city limits receive a written contract when they start a new job. This ordinance, known as the Self Employed Protection Ordinance, went into effect on July 1 of this year and is similar to new legislation implemented in cities such as New York, Minneapolis, and Seattle.
According to this ordinance, every contract must explicitly include the following information:
- The personal data (name, address, telephone number, and email (if available) of both the Contracting Entity and the Self-Employed Worker
- A detailed description of all services to be provided, the value of such services, and the rate and method of compensation to be used
- The date on which the Contracting Entity must pay or the way in which said date will be determined.
Additionally, and as stipulated by this regulation, these contracts must cover a series of legal terms, including:
- Every new contract must specify that it corresponds to an independent or autonomous worker, understood as an individual person or physical entity that will provide independent labor for work carried out in the city of Los Angeles.
- Every new contract must specify a contracting entity. This will be defined as an entity regularly engaged in business or commercial activities, including the ownership or operation of a trade or business, a non-profit company, that requests the services of any independent worker.
- Regarding the payment of services, these new contracts stipulate that every contracting entity must pay the entire amount agreed upon by both parties no later than 30 days after the provision of services. Additionally, the contracting party must submit written records of all payments related to the contract, as well as any other written records that demonstrate compliance with the ordinance. These documents must be kept for at least four years.
This ordinance seeks to grant certain basic guarantees to self-employed workers. Legally protecting them from any potential retaliation an employer may attempt to take against them and protecting them from proceedings related to attempting to assert rights under the ordinance through legal means.