On Nov. 22, 2023, Governor Hochul signed the Freelance Isn’t Free Act. She vetoed an identical bill last year.
This law provides new legal protections for independent contractors. It requires a written contract for projects having a value of $800 or more, which must include the following:
- Names and mailing addresses of the parties.
- Itemization of the services to be provided.
- Rate and method of compensation.
- Date by which the compensation will be paid, or an explanation of how that date will be determined. If no date is specified, payment is due no later than thirty days after services are completed.
- The date by which the independent contractor must submit a list of the services provided.
This law applies to services provided by individuals, and by LLCs and corporations which have only one owner. It does not apply to attorneys, medical professionals, and construction contractors. It also doesn’t apply to sales representatives, who are protected by another provision of the Labor Law.
An independent contractor who isn’t paid in full can commence a legal action. If successful, the independent contractor can recover twice what is owed, plus attorney’s fees.
This new law takes effect 180 days after enactment and does not apply retroactively.
As we have seen with other recent employment laws in New York State, this law is modeled on an existing New York City law.
Please let us know if Colligan Law can assist with any of your employment law needs.