Passed late last year, the Freelance Isn’t Free Act (the “Act”) is expected to go into effect on August 28, 2024. The Act extends protections for freelance workers across New York State and mirrors protections in New York City’s Freelance Isn’t Free Law.

The Act defines a freelance worker as any person or single-person corporate entity “that is hired or retained as an independent contractor by a hiring party to provide services” in exchange for compensation. The Act only applies if the freelancer provides services for at least $800 within a 120-day period. Excluded from the definition of a “freelance worker” are certain sales representatives, attorneys, licensed medical professionals, and construction contractors.

The Act requires New York businesses that utilize freelance workers to memorialize the terms of their relationship in writing, including:

• the name and mailing address of the hiring party and the freelance worker;
• an itemization of all services to be provided by the freelancer;
• the rate and method of compensation; and
• the date by which a freelance worker must submit a list of services rendered under the contract to ensure timely payment.

The Department of Labor is expected to provide model contracts for freelancers and companies that comply with this new law on its website.

The Act also prohibits retaliation against freelance workers who exercise their rights under the Act. The Act gives the New York State Department of Labor (“NYSDOL”) power to investigate and enforce claims of retaliation, including the power to award civil and criminal penalties. Freelance workers may also file a lawsuit under the Act, which could expose companies to damages, reasonable attorneys’ fees, and other remedies. Repeat offenders are subject to enforcement by the New York Attorney General and face fines of up to $25,000.

New York employers who utilize freelance workers need to be aware of the Act to avoid running afoul of its provisions. MHS’s attorneys are available for consultation if you want to ensure that you are compliant or have more specific questions.