In a recent development from the legal sector, businesses operating in New York State will soon be obligated to provide written agreements to numerous “freelancers”, courtesy of a newly signed law by Governor Kathy Hochul. This law, known as the “Freelance Isn’t Free Act,” is slated for enforcement beginning May 20, 2024.
With the addition of a new section 191-d to the New York State Labor Law, these changes align with a parallel law enacted in New York City back in 2017. It’s essential to note that these changes necessitate businesses in New York State to establish a written agreement with any engaged freelancer or independent contractor.
Scrutinizing the specifics of this Act is crucial for corporations and law firms alike. It underscores the need for a written contract for services priced $800 or more, either through a single contract or a series of contracts within a 120-day period. The elements of the contract must encompass aspects such as a description of the services to be provided, the rate or rates of pay, and the payment schedule or mechanism.
The penalties for violating this Act can range from damages, statutory damages, injunctive relief, and civil penalties. Therefore, it’s critical that businesses adhere to the requirements of this Act to avoid these penalties.
Closer attention to this law, and adherence to its tenets, reflects a necessary paradigm shift in engaging inclusive practices with freelancers. It is a clear nod toward transparency and fairness within modern business operations and a critical reminder of the evolving legal landscape surrounding contract work.