Businesses across the state will soon join those in New York City in being required to enter into written contracts with most freelance workers. On November 22, 2023, New York Governor Kathy Hochul signed the Freelance Isn’t Free Act (the “Act”) into law. The Act expands protections for freelance workers and creates additional avenues for freelancers to recover unpaid compensation and damages stemming from contractual violations. Similar requirements have been in place in New York City since 2017, but the Act expands the requirements statewide. As with the New York City law, the Act requires businesses to provide all covered freelance workers who provide services worth at least $800 dollars with a written contract when engaging their services.

The Act explicitly excludes from the definition of freelance worker certain sales representatives, attorneys, licensed medical professionals, and construction contractors (note: the New York City exclusions do not include construction contractors). The contract must contain an itemized list of the services being provided by the freelancer, the value of the services, the rate and method of compensation, and the date on which the hiring party must pay the contractor, amongst other information. The hiring party must retain these agreements for at least six years.

The Act will be effective May 20, 2024. Upon its effective date, freelance workers can file a complaint for violations of the Act with the New York State Department of Labor or commence a lawsuit in court. Retaliation for exercising rights guaranteed under the Act is prohibited. Freelance workers who are successful in their legal claims can recover statutory damages, attorney’s fees, double damages 

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.