The Freelance Isn’t Free Act is a piece of legislation (Local Law 140 of 2016) that is aimed at protecting freelancers and independent contractors from non-payment or late payment for their services. It was enacted in New York City in May 15, 2017. The primary purpose of this law is to ensure that freelancers receive timely and full compensation for their work. The law establishes penalties for violations of these rights, including statutory damages, double damages, injunctive relief, and attorney’s fees. Individual causes of action will be adjudicated in state court. Key provisions of the Freelance Isn’t Free Act include:
Written Contracts: Clients are required to provide a written contract for freelance services valued at $800 or more. The contract should outline the scope of work, the rate of pay, and the payment terms.
Timely Payment: Freelancers are entitled to receive payment for their services on or before the date specified in the contract or, if there is no agreed-upon date, within 30 days of completion of the services.
Protection from Retaliation: The law prohibits clients from retaliating against freelancers who exercise their rights under the Freelance Isn’t Free Act.
Nonpayment Complaints: Freelancers can file complaints with the New York City Department of Consumer Affairs if they are not paid in accordance with the terms of their contracts.
Legal Recourse: Freelancers who are not paid on time or in full can take legal action against clients in court and may be entitled to damages, double damages, and attorney’s fees.
2024 Revision: New York State has revised its Freelance Isn’t Free Act, delaying the original implementation date and introducing several notable amendments. While FIFA was initially set to take effect on May 20,2024, it will now apply to contracts with freelancers entered into on or after August 28, 2024.
The revisions include:
Extended Scope: The Act now applies to all New York State, providing uniform protections for freelancers regardless of location.
Enforcement Mechanisms: Strengthens enforcement measures by allowing freelancers to file complaints with the New York State Department of Labor (NYSDOL), in addition to bringing a civil lawsuit.
Increased Penalties: Businesses that fail to comply with the Act may face statutory damages, attorney’s fees, and civil penalties, including potential fines imposed by the NYSDOL.