Freelance Work Isn't Free

3.24.2017

On May 15, 2017, the New York City “Freelance Isn't Free Act” (the Act) will take effect. The Act protects freelance workers who are defined as “any natural person or organization composed of no more than one natural person, whether not incorporated or employing a trade name, that is hired or retained as an independent contractor by a hiring party to provide services in exchange for compensation.”   The NY definition does not include any person who is a sales representative as earlier defined in section 191-a of the labor law.

As a protection for freelance workers, the law requires that whenever a hiring party retains the services of a freelance worker, and the contracted work has “a value of $800 or more, either by itself or when aggravated with all the contracts for services between the hiring party and the freelance work or during the immediately preceding 120 days, the contract shall be reduced to writing.”  Such writing must contain the following information:

  1. The name and mailing address of both the hiring party and the freelance worker;
  2. An itemization of all services to be provided by the freelance worker, the value of the services to be provided pursuant to the contract and the rate and method of compensation; and
  3. The date on which the hiring party must pay the contracted compensation or the mechanism by which such date will be determined.

It is important to note that the director of the office of labor standards "may by rule require additional terms to ensure that the freelance worker and the hiring party understand their obligations under the contract."

If the contract does not specify when the hiring party will pay the compensation, it must be paid no later than 30 days after completion of the freelance work or services.

If the hiring party does not provide a written contract, the freelance worker can only make a claim if they requested a written contract and the request was denied.

The Act further provides that once a freelance worker has commenced performance of services, the hiring party cannot require, as a condition of timely payment, that the freelance worker accept less compensation than the amount contracted. The law prohibits retaliation against freelance workers who are seeking to exercise their rights under this Act.  There is a complaint procedure outlined in the Act, which can be viewed here.

It is important to note that violating this Act may trigger double damages, civil penalties and attorneys’ fees.  The civil penalties include a penalty “of not more than $25,000 for a finding that the hiring party has engaged in a pattern and practice of violations of this [law]."

The entire text of the Act can be found at: "Establishing protections for freelance workers."

Tags: NYC Freelance WorkFreelance Isn’t Free Act

BLOG DISCLAIMER

The postings on this blog were created for general informational purposes only and do not constitute legal advice or a solicitation to provide legal services.  Although we attempt to ensure that the postings are complete, accurate, and current as of the time of publication, we assume no responsibility for their completeness, accuracy, or timeliness.  The information in this blog is not intended to create, and receipt of it does not constitute, a lawyer-client relationship.  Readers should not act upon this information without seeking professional legal counsel.

This blog may contain links to independent third party websites and services, including social media. We provide these links for your convenience, and you access them at your own risk.  We have no control over and do not monitor the content or policies (including privacy policies) of these third-party websites and have no responsibility for, and no liability with respect to, their content, accuracy, or reliability.  Unless expressly stated, we do not endorse any of the linked websites or any product, service, or publication referenced herein or therein.  We will remove a link to any site from this blog upon request of the linked entity.

We grant permission to readers to link to this blog so long as this blog is not misrepresented. This site is not sponsored or associated with any other site unless so identified.

If you wish for Wilentz, Goldman & Spitzer, P.A., to consider representing you, please obtain contact information from the Contact Us area of this blog or go to the firm’s website at www.wilentz.com.  One of our lawyers will be happy to discuss the possibility of representation with you. However, the authors of Wilentz blogs are licensed only in New Jersey and/or New York and do not wish to represent anyone who viewed this site in a state where the site fails to comply with all laws and ethical rules of that state.

Sign Up

Tracy Armstrong Photo

Tracy Armstrong
Co-Chair, Employment Law Team
Shareholder
732.855.6020