Freelance Payment Protection Laws Compared
Four jurisdictions now give freelancers statutory teeth beyond the invoice. Here's how the laws stack up — and a free penalty calculator for each one.
| Jurisdiction | Law | Effective | Covers work worth | Late payment | No written contract | Retaliation / discrimination | Try it |
|---|---|---|---|---|---|---|---|
| Illinois | Freelance Worker Protection Act | Jul 1, 2024 | $500+ (single contract or aggregate in 120 days) | Double the unpaid amount + fees | Greater of $500 or the contract value | Contract value per violation | IL calculator |
| New York | Freelance Isn't Free Act | Aug 28, 2024 | $800+ (single contract or aggregate in 120 days) | Double the unpaid amount + fees | $250 (escalates to contract value with other violations) | Contract value per incident | NY calculator |
| California | Freelance Worker Protection Act (SB 988) | Jan 1, 2025 | $250+ (single contract or aggregate in 120 days) | Up to double the unpaid amount + fees | $1,000 | — | CA calculator |
| United Kingdom | Late Payment of Commercial Debts (Interest) Act 1998 | 1998 | B2B invoices | BoE base rate + 8% + £40/£70/£100 fixed compensation | — | — | UK calculator |
Nowhere else yet? Most states and countries have no freelancer-specific statute. That doesn't leave you powerless: get payment terms in writing, set a due date (30 days is the default in these laws for a reason), and chase on schedule — start with the reminder letter generator.
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Common questions
Is there a Freelance Isn't Free Act in my state?
Three US states have enacted freelance payment protection laws: New York (Freelance Isn't Free Act, contracts on or after August 28, 2024), California (Freelance Worker Protection Act, SB 988, contracts on or after January 1, 2025), and Illinois (Freelance Worker Protection Act, contracts on or after July 1, 2024). The UK's Late Payment of Commercial Debts (Interest) Act 1998 covers late B2B payment with statutory interest plus fixed compensation. Most other states and countries have no freelancer-specific statute — your contract terms and general collection law apply.
Which freelance payment law gives the biggest penalties?
All three US laws award double damages on unpaid freelance fees, so the ranking depends on your situation: Illinois has the largest written-contract penalty (the greater of $500 or the full contract value), New York's is $250 unless combined with other violations (then the full contract value), and California's is a flat $1,000. Illinois also awards the full contract value per discrimination violation. All three add reasonable attorney's fees and costs.
Do these laws apply if my client is in another state?
Coverage is about where the work happens or where the hiring entity is based: Illinois covers freelance work performed in Illinois or for a hiring entity located in Illinois; New York's law covers work in New York State (NYC's 2017 original covers city-based work); California's covers freelancers hired as independent contractors by a contracting entity, with contracts on or after January 1, 2025. If neither you nor the client is in a covered jurisdiction, you fall back to your contract and standard collection steps — the reminder letter generator and invoice-chasing emails work anywhere.