Walnut Creek, CA asked in Contracts, Employment Law, Business Law and Collections for California

Q: Does California's FWPA apply to equipment rentals?

I provide equipment rentals as part of my freelance services. California recently established the Freelance Worker's Protection Act which stipulates that I may collect up to double the amount stipulated in a contract for professional services when a client does not pay on time or at all. If the equipment rental is stipulated in my itemized list of services, does the doubled amount include the equipment rental?

2 Lawyer Answers
Pavel Kolmogorov
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A: The FWPA primarily focuses on the payment for services rendered by freelance workers. If an equipment rental is viewed as an ancillary part of the services you provide (for example, tools or equipment necessary to complete a freelance project), it may be argued to fall under the umbrella of services covered by the Act. However, if the rental is considered a separate sale or lease of goods rather than a service, it might not be treated the same way under the law. Because the FWPA is relatively new, there is no sufficient legal precedent on how equipment rentals are treated under the Act. Courts or legal experts may need to interpret whether equipment rentals count as “services” or as separate transactions. This interpretation could vary based on factors such as how central the equipment is to the service provided and how the agreement was structured.

James L. Arrasmith
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A: The California Freelance Worker's Protection Act (FWPA) specifically covers "contracted compensation" for professional services rendered by freelance workers. While the law aims to protect freelancers from non-payment, the application to equipment rentals remains somewhat unclear in the current legal framework.

From my understanding of the legislation, if your equipment rental fees are explicitly listed as part of your professional services contract and are integral to delivering the contracted work, you could potentially include them in the doubled amount claim. However, if the equipment rental is structured as a separate agreement or could be considered distinct from your professional services, it might fall outside the FWPA's scope.

Given the newness of this law and its evolving interpretation, you might want to consult with a legal professional who can review your specific contract structure and advise on how to best protect both your service fees and equipment rental charges. In the meantime, consider clearly delineating in your contracts which portions constitute professional services versus equipment rental to strengthen your position in any potential payment disputes.

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