In Focus
New York State Enacts Freelance Isn't Free Act
With the transition to a gig economy, many workers are in business for themselves as freelancers, either as sole proprietors or through an entity. Sometimes, freelancers encounter difficulty getting paid timely or in full. To address this problem, New York City passed a Freelance Isn't Free Act, and now New York State has done so as well. The law applies to contracts over $800 with individuals or individually owned business entities for services other than sales agency, legal, medical or construction. The law requires that such contracts be in writing and specify:
- the name and address of the parties;
- the services to be rendered;
- the value of the services;
- the amount of compensation or the method for determining it;
- the date by which the freelancer must submit a list of services rendered; and
- the date by which payment must be made.
If no date is specified, then payment must be made within thirty days. The statute is enforceable by the freelancer and by the Department of Labor. A freelancer who prevails is entitled to double damages and an award of attorneys fees. Freelancers who want to ensure payment can also do business on the Upwork platform which requires clients to escrow payments in advance and provides for mediation and arbitration of disputes.
