New York City’s Freelance Isn’t Free Act Effective May 15, 2017
As previously reported on February 6, 2017, New York City’s Freelance Isn’t Free Act – aimed to protect freelance workers against wage theft – is now effective. New York City employers retaining the services of freelance workers must comply with the following:
Written Contract: Any services valued at $800 or more must be reduced to writing and include, at least, the following terms:
• the name and mailing address of both the hiring party and the freelance worker;
• an itemization of services;
• the value of services to be provided;
• the rate and method of compensation; and
• the date on which payment is due or, if unspecified, the mechanism by which the date of payment will be determined.
Time for Payment: The hiring party must pay the freelance worker in full and on time or, if no payment date is specified, the hiring party must pay no later than 30 days following completion of services.
Additional protections prohibit the hiring party from retaliating against a freelance worker for exercising or attempting to exercise their rights under this law, and further provides aggrieved freelance workers with the right to file an administrative complaint or a civil action against the hiring party.
Depending on the violations alleged, hiring parties could be liable for statutory damages or civil penalties ranging from $250 to $25,000 and may also include “double damages, injunctive relief and other such remedies” as appropriate.
This article has been provided as a service to readers and is intended for educational purposes only. This information should not be construed as legal advice or to create a lawyer-client relationship. Readers should retain counsel for legal advice and any further inquiries.