Press Release

Senate Passes Senator Wiener Bills to Protect Freelance Workers, Boost Housing Production

SACRAMENTO – The Senate passed Senator Scott Wiener’s (D-San Francisco) Senate Bills 937 and 988. SB 937 will boost housing production by deferring impact fees until a project is complete, instead of at the beginning of the project, and passed the Senate 36-0. SB 988 provides basic labor protections for freelance workers and passed 33-3. Both bills head next to the Assembly, where they must pass by August 31.

“I’m delighted to see the Senate advance these crucial measures to provide stability for Californians,” said Senator Wiener. “By giving freelancers the protections they deserve and making it easier to build homes under volatile market conditions, these bills provide the support Californians need to flourish.”

SB 937

Cities vary widely in the development fees they charge for new homes in California, often for reasons that can seem arbitrary. Los Angeles reports a multifamily development fee of $12,000 per unit, while Fremont reports $75,000. The state contains more than its share of cities charging high development fees, with the six jurisdictions charging the highest recorded fees in the nation all located in California.

Some cities have deferred the collection of development fees during periods of economic hardship to prevent housing production from grinding to a halt. During the Great Recession, Fremont was one of many cities that deferred fees, and in 2023 it announced it would revive the program. With today’s high interest rates and rising costs driven by COVID-related inflation, developers are facing a similar challenge to make projects pencil. Developers need the flexibility of both fee deferrals and entitlement extensions to meet state housing goals amid challenging market conditions.

SB 937 builds on these efforts by delaying the payment of development fees imposed by a local government until the certificate of occupancy is issued. Local governments may not charge interest rates on any deferred fees.

The bill was amended in the Senate Local Government committee to prioritize mixed income housing. 

During periods of economic volatility, some projects also die because their entitlements expire before the developer can raise the money to complete the project. Cities grant entitlements to developers as the last step before construction begins, but they are typically only valid for a limited period before expiring. SB 937 provides developers with much-needed wiggle room by extending certain housing entitlements issued prior to Jan. 1, 2024 and set to expire on or before Dec. 31, 2025 by 24 months.

Senate Bill 937 is sponsored by the California Housing Consortium, California YIMBY, and the Housing Action Coalition. It is co-authored by Assemblymember Tim Grayson (D-Concord).

SB 988

Freelancing is a rapidly growing and crucial sector of the economy. In 2022, 60 million Americans freelanced, making up 39% of the total workforce and contributing $1.35 trillion to the national economy.

"We applaud Senator Wiener and the CA State Senate for moving quickly and bipartisanly to offer tens of thousands of CA freelance workers the protections against wage theft and breach of contract," said National Writers Union President, Larry Goldbetter. “With our allies, we represent thousands of CA freelance writers and media workers, photographers, graphic artists, podcasters, models and many more who deserve to be paid on time for the work they perform. CA can not only open the door to other state freelance protection laws, but to possible federal legislation as well."  

Most freelancers lack basic worker protections, most notably, the right to be paid for their work on time. According to the Freelancers Union, 71% of workers experienced late or non-payment. 59% report living paycheck to paycheck. Most do not have written contracts, as only 25% reported that they consistently have written contracts.

The Freelance Worker Protection Act provides basic protections, including:

  • Mandatory contracts: Any freelancer performing over $250 of work for a hiring entity over a four month period is entitled to a contract outlining the scope of the work expected, the rate of pay, and the method of payment.
  • 30-day payment terms: Clients must pay their freelancers within 30 days of completion of work unless otherwise specified in the contract.
  • Payment agreement protections: Clients cannot require that freelancers accept less than the contract stipulates in exchange for faster payment.
  • Anti-retaliation: Clients cannot retaliate against freelancers for pursuing payment.
  • Double Damages: Freelancers who are the victim of non-payment are entitled to damages equal to double the payment originally specified in their contract, plus costs and attorney’s fees.
  • SB 988 is sponsored by the California Teamsters Public Affairs Council and the National Writers Union.

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