Legislators Consider Freelance Isn’t Free Law at State Level in New York

New Statute Would Protect Freelancers Statewide Freelancers…independent contractors…the “gig” economy. Regardless of the appellation, it’s the fastest growing sector of the economy. According to one study, the number of people working full-time as freelancers nearly doubled from 2020 to 2022, from just under 16 million to almost 32 million. Estimates are that up to 65 million Americans perform some type of freelance work every year. While legal protections have long been in place for W-2 employees, ensuring timely and fair payment of wages, many freelance workers have a history of late payments, underpayments and outright refusals to pay. Recognizing both the growth in the gig economy and the need to provide basic protections to freelancers, New York City enacted a law in 2016, known as the Freelance Isn’t Free Act, or FIFA. The law went into effect on May 15, 2017 and has reaped significant benefits for freelance workers throughout New York City. Now, legislators want to extend those protections across the state of New York. Introduced in February, 2022, the proposed law, if enacted, would use the New York City law as a framework. The Basic Requirements of NYC’s Freelance Isn’t Free Act Under the provisions of FIFA currently in place in New York City, freelance workers are entitled to: A written employment agreement—If the total amount to be paid to the freelance worker is $800 or more, which includes all work done within a 120-day window, the business hiring the freelancer must put the terms of the agreement in writing. The written contract must include basic terms, such as the names and addresses of all parties, a...