This article addresses these issues, among others:
The New York State Freelance Isn’t Free Law (“NY FIFL,” the “New York Freelance Isn’t Free Law,” the “Freelance Isn’t Free Law,” or the “Law”) is a New York State statute which, effective August 28, 2024, greatly strengthens the rights and remedies of independent contractors (also referred to in this article as “freelancers” or “freelance workers”) by, among other things, affording independent contractors the right to a written contract, authorizing freelancers, in lawsuits against hiring parties for unpaid compensation, to recover double damages (and, in certain circumstances, treble damages) and attorneys’ fees, and prohibiting hiring parties from retaliating against freelancers for exercising their rights under the Law.
The New York Freelance Isn’t Free Law is codified as N.Y. Gen. Bus. Law §§ 1410 – 1415.
The NY FIFL is a direct descendant of New York City’s pioneering Freelance Isn’t Free Act (the “New York City Freelance Isn’t Free Act” or the “NYCFIFA”), which took effect in May 2017. The New York City Freelance Isn’t Free Act was the first of its kind in the United States.
Under the NY FIFL, a “ʹfreelance workerʹ” is “any natural person or any organization composed of no more than one natural person, whether or 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 of $800 or more. The Law specifically exempts, from its definition of a freelance worker, sales representatives, lawyers, licensed medical professionals, and construction contractors.
Attorney David S. Rich is a hard-working, knowledgeable New York City Employment Lawyer. For more than 25 years, Mr. Rich has helped executives, professionals, and independent contractors just like you seek justice when the companies they work for break the law.
Have questions, or in need of legal guidance? Contact New York City Employment Attorney David S. Rich at (347) 835-5688 to schedule an initial consultation today.
In turn, under the Freelance Isn’t Free Law, a “ʹhiring partyʹ” is “any person,” other than federal, state, local and foreign governments, “who retains a freelance worker to provide any service.”
The Law requires a written contract whenever a contract for freelance services has a value of $800 or more, either by itself or when aggregated with contracts made between the same parties in the immediately preceding 120 days. The written contract must include, at a minimum, (i) the name and address of both parties, (ii) an itemization of services, (iii) the rate and method of compensation, (iv) either the date on which the hiring party will pay the agreed-upon compensation or the mechanism to determine that date, and (v) the date by which the freelance worker must submit to the hiring party a list of services rendered in order to meet any processing deadlines for the purposes of compensation being timely rendered.
The Freelance Isn’t Free Law requires the hiring party to pay the freelance worker either (i) on or before the date compensation is due under the terms of the contract or (ii) if the contract does not specify such date, no later than 30 days after the freelancer has completed his or her services under the contract.
Once an independent contractor has begun performing services under the contract, the Law prohibits the hiring party from requiring, as a condition of timely payment, that the independent contractor accept less compensation than the contract requires.
Attorney David S. Rich is a hard-working, knowledgeable New York City Employment Lawyer. For more than 25 years, Mr. Rich has helped executives, professionals, and independent contractors just like you seek justice when the companies they work for break the law.
Have questions, or in need of legal guidance? Contact New York City Employment Attorney David S. Rich at (347) 835-5688 to schedule an initial consultation today.
Yes. The NY FIFL makes it unlawful for a hiring party to threaten, intimidate, discipline, harass, deny a work opportunity to, or discriminate against a freelance worker, or take any other action that penalizes a freelance worker for, or is reasonably likely to deter a freelancer from, exercising or attempting to exercise any right guaranteed by the Freelance Isn’t Free Law, or from obtaining future work opportunity because the freelance worker has done so.
The Freelance Isn’t Free Law authorizes freelance workers to bring lawsuits against hiring parties for violating the Law. A freelance worker who, in a lawsuit against a hiring party, prevails on a cause of action for unpaid compensation is to be awarded double damages, reasonable attorneys’ fees and costs.
An independent contractor who, in a court action against a hiring party, proves that the hiring party unlawfully retaliated against him or her for exercising rights guaranteed by the NYFIFL is entitled to damages equal to the value of the underlying contract, reasonable attorneys’ fees and costs.
An independent contractor who, in a lawsuit against a hiring party, prevails on a stand-alone claim of failure to provide a written contract as required by the Law is to be awarded damages of a mere $250, plus reasonable attorneys’ fees and costs.
If, however, in a court action against a hiring party, an independent contractor, in addition to winning a claim of failure to provide a written contract as required by the NYFIFL, also prevails on one or more claims under other provisions of the Law, then damages for the claim of failure to provide a written contract are no longer $250, but instead are equal to the value of the underlying contract.
So, for example, an independent contractor who, in a lawsuit, prevails both on a claim of failure to provide a written contract and on a claim for unpaid compensation is to be awarded what amounts to treble damages. Specifically, under the NYFIFL, such an independent contractor is entitled to recover, from the hiring party, both double the amount of unpaid compensation and the value of the underlying contract.
New York State’s Department of Labor has issued a model contract that hiring parties and independent contractors may choose to use, which can be found here.
The NY FIFL states that no provision of that law relating to freelance workers shall be construed as providing a determination about the legal classification of any such worker as an employee or independent contractor.
Attorney David S. Rich is a hard-working, knowledgeable New York City Employment Lawyer. For more than 25 years, Mr. Rich has helped executives, professionals, and independent contractors just like you seek justice when the companies they work for break the law.
Have questions, or in need of legal guidance? Contact New York City Employment Attorney David S. Rich at (347) 835-5688 to schedule an initial consultation today.