Contractor Pay Rules
Effective January 1, 2026, SB 809 adds Labor Code sections 2750.9 and 2775.5, creating new payment protections for independent contractors in California.
Labor Code § 2750.9 requires businesses to pay independent contractors within 30 days of receiving an invoice, unless a different payment schedule is specified in the written contract. This state law establishes a baseline payment timeframe that didn’t previously exist in California law.
However, several California municipalities impose stricter requirements than state law. Businesses operating in multiple cities must comply with the shortest applicable deadline.
Los Angeles Municipal Code § 10.8 requires payment to independent contractors within 20 days of invoice submission, not 30. The LA ordinance also includes enhanced penalties for late payment and stronger anti-retaliation protections than state law provides.
San Francisco’s Freelance Worker Protection Ordinance similarly requires payment within 30 days but adds mandatory written contract requirements and provides administrative remedies that don’t require contractors to hire attorneys or file lawsuits.
For businesses working with contractors across multiple California cities, you cannot simply comply with the 30-day state law deadline. If your contractor performs work in Los Angeles, you’re on a 20-day clock regardless of what state law allows. The municipal ordinance governs.
Labor Code § 2775.5 strengthens enforcement by creating penalties for businesses that fail to pay contractors according to these timelines.
Are your independent contractor payment practices compliant with both state law and the municipal ordinances in the cities where your contractors work?
#EmploymentLaw #CaliforniaLaw #IndependentContractors #SB809 #ContractorRights
Please note that this article is for informational purposes only and should not be considered and is not legal advice, and does not constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business or individual situation.
This post shares general information based on common patterns I see in California workplaces. It is not legal advice, does not create an attorney-client relationship, and outcomes depend on specific facts — no lawyer can guarantee a result. Past results do not guarantee or predict future outcomes. AI may have been used to create this post. All content reviewed by a CA attorney before publication. This post may be attorney advertising.
Michael Trust Law, APC, 703 Pier Avenue, Ste. B367, Hermosa Beach, CA 90254: michaeltrustlaw.com