A newly enacted law provides New York freelancers with labor protections.
The "Freelance Isn't Free Act" prevents companies from not paying freelancers. The law requires a contract between freelancers and clients for any work valued at $800 or more. It also requires clients to pay freelancers by the contract's due date or within 30 days of work completion if no date is specified.
Rafael Espinal, executive director of the Freelancers Union, said the law has been needed for a long time.
"We've found that freelancers, on average, lose about $6,000 a year because of nonpaying clients," Espinal reported. "We know, in a state like New York, $6,000 goes a long way in being able to keep up with the cost of living and being able to pay their bills like their rent, utilities, putting food on the table."
Freelancers have provided positive feedback on the law but it faced hurdles before passing in late 2023. Some companies expressed compliance concerns about larger businesses' interactions with freelancers. Gov. Kathy Hochul initially vetoed the bill. At first, enforcing the bill went to the Department of Labor but the passed version puts the responsibility on the Attorney General's office.
Before the bill passed, Espinal advised freelancers about how to make contracts bulletproof so they were guaranteed payment. Some steps involve stipulations ensuring payment at milestone periods of a job and net payment terms. Espinal noted the new law expands what is considered a written agreement to protect freelancers further.
"The law really captures all written agreements and considers them to be contracts," Espinal explained. "It could be anything as simple as a text message, outlining the work with the payment terms. It can be an email, it doesn't necessarily have to be a traditional contract on legal paper."
This bill was modeled after New York City's own "Freelance Isn't Free" law. Aside from New York, Kansas, Missouri and Los Angeles have similar protections for freelancers.
