New York state has recently passed legislation, signed by Governor Kathy Hochul, aiming to bolster protections for freelance workers and those filing discrimination complaints, while modifying regulations surrounding settlement agreements in claims of harassment, discrimination, or retaliation.
At the heart of this legislative evolution is the enactment of the Freelance Isn’t Free Act. The Act introduces new measures to ensure the rights of freelancers, such as timely payments, a written contract for services valuing $800 or more, protection against contract breach, and legal remedies for incurred damages.
In line with efforts to create an equitable working environment, the state has adopted changes to discrimination claim proceedings by extending the statute of limitations to file a lawsuit alleging unlawful discriminatory practices. This extension has the potential to provide victims more time to seek justice.
The state has also taken strides to enhance fairness in settlement agreements for claims of harassment, discrimination, or retaliation. Specifically, New York law now prohibits the inclusion of liquidated damages provisions in these settlement agreements. Liquidated damages clauses normally compel the breaching party to pay a predetermined sum in the event of a contract breach or particular harm. The exclusion of such provisions from settlement agreements could have significant implications for both parties in these types of claims.
These changes highlight the growing commitment of New York state to improve working conditions and fairness for all. Given the possible sweeping impacts, it is essential for corporations and law firms alike to stay abreast of these developments. Also, diligent steps should be taken for the purpose of compliance.
More comprehensive details regarding these new laws can be found in the original article by Jackson Lewis P.C. at JD Supra.