Freelance Contract Laws: When a Written Contract Is Required

The laws at a glance

Where	Written contract from	Pay without a date
New York State	$800, counting the last 120 days	Within 30 days of completion
New York City	$800, counting 120 days	Within 30 days of completion
Illinois	$500 in a 120-day period	Within 30 days of completion
California	More than $250, over four months	Within 30 days of completion

New York State's Freelance Isn't Free Act became Article 44-A of the General Business Law on August 28, 2024. New York City has its own law with the same name, enforced by the Department of Consumer and Worker Protection. Illinois' Freelance Worker Protection Act applies to contracts taking effect after July 1, 2024. California's SB 988 was signed on September 28, 2024, and the governor's office lists it among the laws taking effect in 2025. These are the official pages we could confirm; other states and cities may have rules of their own, so check with your state labor department.

Who counts as a freelancer

The New York State law covers any person, or any organization made up of no more than one person, incorporated or not, hired as an independent contractor to provide services for $800 or more. It excludes sales representatives under the Labor Law, lawyers practicing law under the contract, licensed medical professionals and construction contractors. Employees are not freelancers at all; W-2 vs 1099 covers that line.

How the 120-day count works

The threshold is not just per job. In New York, a contract counts when its value, added to all other contracts between the same client and freelancer in the immediately preceding 120 days, reaches $800. Illinois uses $500 in a 120-day period. Three example jobs for one client:

Job	Date	Fee	Total in 120 days
Logo	Mar 2, 2026	$300	$300
Business cards	Apr 10, 2026	$250	$550
Flyer	Jun 20, 2026	$300	$850

The flyer comes 110 days after the logo, inside the window, so all three count together. In New York the $800 line is crossed with the flyer, so that contract must be in writing. Under the Illinois figure the $500 line is already crossed with the business cards. Under the California summary, the first job is already more than $250. Writing every job down from the start avoids the counting entirely.

What the contract must say

New York State lists the minimum contents in section 1412:

the name and mailing address of both parties,
an itemization of all services, the value of the services and the rate and method of pay,
the date the client must pay, or how that date will be set,
the date by which the freelancer must submit a list of completed services, so the client can meet its own processing deadlines.

The client must give you a copy, on paper or electronically, and keep the contract for at least 6 years. The Department of Labor publishes a free model contract. Illinois asks for much the same: names and contact details of both sides, an itemization of products and services, the rate and method of pay, the due date, and the dates the services will be provided.

A detailed quote covers most of these points before the work starts. The price quote generator lists each service with its price and a valid-until date, and the freelance project price calculator builds the price from your hours, rate and costs. Put the payment date and the delivery date in the signed version.

The 30-day payment rule

In New York, the client must pay by the date in the contract, or, if the contract sets no date, no later than 30 days after you complete the work. Once you have started, the client may not make timely payment depend on you accepting less than the agreed amount. New York City, Illinois and California use the same 30-day default. Your invoice should repeat the agreed due date; the invoice generator sets it from the payment terms, and invoice payment terms explains Net 30 and the rest.

What you can recover in New York

Late or missing payment: double damages, injunctive relief and reasonable attorney's fees and costs.
Retaliation for exercising your rights: statutory damages equal to the value of the contract for each violation.
No written contract: $250, but only if you requested a written contract before the work began.
Time limits: two years for a contract claim under section 1412, six years for payment or retaliation claims.

The state attorney general takes complaints and can seek civil penalties. In New York City, you can complain to DCWP online, by email or through 311; the client then has 20 days to respond, and if that does not resolve it you can go to court. The California announcement describes double the contract payment plus costs and attorney's fees for unpaid freelancers.

Where no freelance law applies

Where none of these laws applies, general contract law and the law of the state that governs the deal decide. A written agreement still records the scope, the price, the due date and who owns the result, the points a client and a freelancer can disagree on later. Price the job first with how to price freelance work, send a quote, get it accepted in writing, then invoice against it.

Before you start a job

Add up what this client has paid or agreed to pay you in the last 120 days, including the new job.
If you or the client are in New York, Illinois or California, compare that total with the thresholds above and check which law applies.
Send a written contract or an accepted quote with the services, price, payment date and delivery date.
Keep your own copy, plus the emails in which the client agreed.
Invoice promptly and note the due date; count 30 days from completion if no date was set.

This is general information about these laws, not legal advice for a specific contract.

Frequently asked questions

Is a written contract legally required for freelance work?

In some places, above a dollar threshold. New York State and New York City require a written contract for freelance work of $800 or more, counted together with other work for the same client over 120 days. Illinois applies its law at $500 in a 120-day period, and California guarantees written agreements for work worth more than $250, according to the governor's office. Elsewhere it depends on general contract law, so a written agreement is still the safer route.

What must a New York freelance contract include?

At least the names and mailing addresses of both parties, an itemized list of all services, their value and the rate and method of pay, the date payment is due or how that date is set, and the date by which the freelancer must submit a list of completed services. The hiring party must give the freelancer a copy and keep the contract for at least six years.

When must a client pay if the contract has no date?

Under the New York State law, no later than 30 days after the freelancer completes the work. New York City, Illinois and California use the same 30-day default when the contract sets no due date, according to their official pages.

What can I recover if a New York client does not pay on time?

Under New York General Business Law section 1414, a freelancer who wins a claim for late or missing payment is entitled to double damages, injunctive relief and reasonable attorney's fees and costs. For a missing written contract alone, the award is $250, and only if you requested a written contract before the work began.

Who is not covered by the New York law?

Section 1410 excludes sales representatives as defined in the Labor Law, lawyers practicing law under the contract, licensed medical professionals and construction contractors. It covers individuals and one-person organizations hired as independent contractors, incorporated or not.

Sources

General information based on the sources above, not tax, legal or financial advice.

Written by Tobias. Updated October 30, 2026.