New York’s Freelance Isn’t Free Act (FIFA), effective August 28, 2024, imposes new legal obligations upon companies that hire an independent contractor to perform services valued at $800 or more. The $800 threshold applies to single contracts or those, which, in the past 120 days, exceed $800 in the aggregate (excepting, attorneys, medical professionals, sales representatives and construction contractors). A similar law has been in effect in New York City since 2017.
FIFA requires:
- a written contract specifying the (a) parties’ name and address; (b) services to be performed; (c) value of the services; (d) rate and method of pay; (e) date or mechanism to determine when payment is due (no later than 30 days after completion); and, (f) date the freelancer must submit a list of services rendered to initiate payment; and,
- written freelancers’ contracts be kept for at least 6 years.
The failure to maintain a written contract creates a presumption that the terms presented by the freelancer are the agreed-upon terms between the parties.
Hiring parties are prohibited from harassing, discriminating, threatening, intimidating, disciplining, or denying work to a freelance worker for exercising any rights under the FIFA.
FIFA permits recovery of double damages (i.e., 200% of the underpayment), injunctive relief, attorneys’ fees and costs, civil penalties, and other remedies as may be appropriate.
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About the Author: Ralph A. Somma
Ralph A. Somma is an experienced employment lawyer from Long Island, New York who has been practicing labor & employment law exclusively for over 30 years.
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