NYS “Freelance Isn’t Free” Act – Effective August 28, 2024
Legislation S.5026/A.6040 extends protections to freelancers across all of New York State, building upon the NYC’s Freelance Isn’t Free Law, by adding oversight and enforcement from the New York State Attorney General’s Office. This law will protect freelancers by establishing a right to a written contract with certain terms, timely and full payment, and protection from retaliation and discrimination for exercising these rights. The Attorney General can bring actions to obtain remedies, including damages and civil penalties, on behalf of impacted freelance workers. Freelance workers would also have the right to pursue a private lawsuit to protect their rights under the new law.
Broken down, under the Act, a freelance worker is:
- any person or organization (of no more than one person);
- that is hired or retained as an independent contractor;
- to provide services valued at $800 or more.
It does not matter if the individual hired performs the work under their individual legal name, a corporate name or other entity, or a trade name.
The Act has only four narrow exemptions to the definition of freelance worker.
The following individuals are not considered freelance workers for purposes of the Act:
- attorneys, or “any person engaged in the practice of law”;
- licensed medical professionals;
- sales representatives, and
- construction contractors
The Act includes 4 key requirements:
- written contract requirements
- payment of compensation on a timely basis and in full and within 30 days if not otherwise specified
- recordkeeping requirements, and
- anti-discrimination
Contact us for more information.
Sandra G Johnson, CPA, EA, CFE
