On November 22, 2023, New York Governor Kathy Hochul signed into law a statewide “Freelance Isn’t Free Act” providing certain protections for freelance workers against wage theft and other violations of New York Labor Law. This law, effective May 10th, 2024, requires hiring parties across the state retaining a freelancer’s services of over $800, within a 120-day period, provide a detailed written contract and timely and full payment. The contract must include the name and mailing address of both parties, an itemization of services to be provided by the freelance worker, the value of services to be provided, and the rate and method of compensation. This Act sets a 30-day deadline for payment in full unless another time frame is agreed upon by both parties.
This Act is almost identical to New York City’s “Freelance Isn’t Free Act,” which has been in effect since 2017, but the state legislation expands oversight and enforcement from the New York State Attorney General’s Office. The Attorney General can bring actions to obtain remedies, including damages and civil penalties, on behalf of impacted freelance workers.
The New York State Department of Labor (DOL) is required to provide model contracts and a non-judicial, administrative process for resolving disputes between freelancers and hiring parties.
This legislation allows workers to report violations to the New York State Department of Labor and collect damages, including statutory and double damages, injunctive relief, and attorney’s fees. Claimants may pursue civil action for damages, even if they have not fully completed the Department of Labor’s complaint and investigation process. Actions for non-payment of contracted compensation or for retaliation are subject to a six-year statute of limitations.
NFIB will engage with and submit comments to the New York State Department of Labor throughout the regulatory process and development of a model contract.
For a summary of the new legislation, click here.
