The Freelance Isn’t Free Act and You
Freelancers and independent contractors make up a significant and growing portion of the work force in New York City. Independent contractors and freelancers enjoy greater working flexibility and the independence it provides. But independent contractors and freelancers are often confronted with difficulties collecting their fees in a timely fashion and disputes over the amount due.
Why The Freelance Isn’t Free Act Was Passed
To address the problems faced by independent contractors and freelancers, New York City passed the Freelance Isn’t Free Act (“FIFA” or the “Act”) in 2017, which provides substantial protections to freelancers and independent contractors.1 FIFA is one of the first laws in the nation to provide protection to this section of the workforce.2
Who is protected under FIFA?
Under FIFA, a “freelance worker” is a person hired as an independent contractor to provide services by a hiring party in exchange for payment. Freelance workers include those operating through a single person organization such as a corporation, or operating under a trade name. Freelance workers are protected under FIFA regardless of immigration status. Those not protected under FIFA are sales representatives, lawyers and licensed medical professionals.
A hiring party is any person or organization who retains a freelance worker to provide services, except that federal, state, local and foreign governments are exempt.3
Additionally, FIFA is a law of New York City so to be protected under the Act, the contracted work must have a connection or nexus to New York City. For example, a connection can be made where the work is performed or contracted in New York City or the hiring party is located there.
What are your rights?
FREELANCE ISN’T FREE ACT REQUIRES A WRITTEN CONTRACT
A freelancer must be provided a written contract if the value of an agreement for services between a freelancer and hiring party is $800 or more (either for a single agreement or for all services provided to the hiring party during the last 120 days taken together). The contract should include the name and mailing address of both parties, a description of all the services the freelancer is expected to provide, the value of those services, the rate and method of compensation and the date the compensation is due.4
FREELANCE ISN’T FREE ACT REQUIRES TIMELY PAYMENT
FIFA requires that the hiring party must pay the freelancer on or before the date that payment is due. In the event that the contract does not indicate a payment date, payment must be made no later than 30 days after the completion of the freelancer’s work under the contract. Also, once a freelancer has begun the contracted work, the hiring party cannot require the freelancer to accept less payment than the amount contracted.5
FREELANCE ISN’T FREE ACT REQUIRES PROTECTION FROM RETALIATION
Under FIFA, hiring parties cannot retaliate against a freelancer for exercising his/her rights under the Act. Retaliation includes threatening, intimidating, disciplining, harassing, denying work opportunities or discriminating against a freelance worker or preventing the freelancer from obtaining future work.6
What Damages are Available Under the Freelance Isn’t Free Act?
Violations of FIFA provide freelancers who prevail on their claims statutory damages, double damages and attorneys fees and costs as well as injunctive relief and statutory damages for failure to provide a written agreement. 7
Need Help?
G&S can help you navigate the specific procedures required under FIFA.We handle cases like these all the time. Call or email any time.
1 https://www1.nyc.gov/site/dca/about/freelance-isnt-free-act.page
2 https://www1.nyc.gov/office-of-the-mayor/news/307-17/freelancers-aren-t-free-mayor-first-nation-protections-freelance-workers
3 N.Y.C. Admin. Code § 20-927 (2017).
4 N.Y.C. Admin. Code § 20-928 (2017).
5 N.Y.C. Admin. Code § 20-929 (2017).
6 N.Y.C. Admin. Code § 20-930 (2017).
7 N.Y.C. Admin. Code § 20-933(b) (2017).