Freelancer’s Rights to a Written Contract & Timely Payment in New York

On November 22, 2023, New York Governor Kathy Hochul signed into law the Freelance Isn’t Free Act (FIFA), a series of labor protections for New York State freelance workers that will take effect on May 20, 2024. Modeled after the successful New York City Freelance Isn’t Free law passed in 2016, FIFA aims to protect freelance workers from wage theft.

Under FIFA, “freelance worker” is broadly defined to cover anyone who is “hired or retained as an independent contractor to provide services” for a payment of at least $800. The $800 threshold can be met through a single contract, or by combining all the work completed between a client and a freelancer over the course of the past 120 days. However, the law excludes certain professions, including attorneys, medical professionals, and government contractors.

Still, for the many freelance workers who are covered by FIFA, the law establishes a series of important rights and protections, which include:
• the right to a written contract;
• the right to certain contractual terms, such as the name and mailing addresses of the parties, an itemization of all services to be provided by the freelancer, the value of the services to be provided, and the rate and method of compensation;
• the right to payment in full within 30 days, unless another timeframe is agreed to by the parties; and
• protection from retaliation, discrimination, or generally any action by the hiring party that is reasonably likely to deter the freelance worker from exercising their rights under FIFA.

Additionally, FIFA allows freelance workers to obtain remedies against vendors that violate the law. These FIFA remedies can be obtained through filing a complaint with the Department of Labor (DOL), filing a civil action in court for damages, and through an action by the New York State Attorney General for damages and civil penalties on behalf of impacted freelance workers.

If you believe your rights may have been violated under the New York State or City Freelance Isn’t Free Acts, contact a Levy Ratner attorney here.