New York State Law Now Protects Freelance Workers

From governor.ny.gov: Governor Kathy Hochul recently signed legislation known as the “Freelance Isn’t Free” Act, which provides protections, rights and opportunities for recourse to freelance workers in New York experiencing non-payment for their services.

The law extends protections to freelancers across all of New York State, building upon the New York City Freelance Isn’t Free Law, by adding oversight and enforcement from the New York State Attorney General’s Office. This law will protect freelancers by establishing a right to a written contract with certain terms, timely and full payment, and protection from retaliation and discrimination for exercising these rights.

The state’s Attorney General can bring actions to obtain remedies, including damages and civil penalties, on behalf of impacted freelance workers. Freelance workers would also have the right to pursue a private lawsuit to protect their rights under the new law.

These expanded rights and protections will apply to covered freelancers being paid at least $800 for their services. The Department of Labor will provide model contracts on its website for freelancers and hiring parties to use with terms that comply with this new law.

According to the National Law Review, the law defines “freelance  worker” as any natural person or 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 an amount equal to or greater than $800, either by itself or when aggregated with all contracts  for  services between the same hiring party and freelance worker during the immediately preceding 120 days.  “Freelance worker” does not include:

• “sales representatives,” as defined in Labor Law § 191-a;
• practicing attorneys;
• licensed medical professionals; or
• “construction contractors,” as defined in the Freelance Isn’t Free Act.

The law defines “hiring party” as any person or entity (other than a federal, state, or municipal governmental agency or authority) that retains a freelance worker to provide any service.

The new law takes effect on May 20, 2024 and applies only to contracts entered into on or after that date.

Get more details from the National Law Review.