How the Freelance Isn’t Free Act is Reshaping Freelancer Rights in New York

The act mandates protections for freelancers such as the right to a written contract, timely and full payment and shields against any form of retaliation. For companies and hiring managers who engage freelancers, understanding this act could dramatically streamline how best to leverage freelance talent, compliantly.

Understand the Critical Aspects of the Freelance Isn’t Free Act

The Freelance Isn’t Free Act is designed to protect and empower freelance workers. Here are the core aspects you need to know:

• Written Contract Mandate: The act requires a written contract for all freelance assignments paying $800 or more. This contract must outline the scope of work, the rate of pay and the payment deadline, which brings clarity and transparency to freelance engagements.
• Timely Payment: Under this legislation, freelancers must receive payment within 30 days of completing their work, unless otherwise specified in the contract. This provision ensures freelancers can manage their finances without undue delays.
• Protection Against Retaliation: The Act permits freelancers to enforce their rights without fear of retaliation from the hiring party. This protection is crucial for maintaining a fair and respectful working environment.

By setting these standards, the Freelance Isn’t Free Act supports freelancers while also guiding companies in establishing fair practices for hiring and collaborating with freelance talent.

Impact on Freelancers

The Freelance Isn’t Free Act is intended to ensure that freelance workers receive fair treatment and safeguard their rights in professional engagements. This legislation mandates structural changes and empowers freelancers with greater control over their work relationships and financial dealings.

Empowerment Through Written Contracts

The Act requires a written contract for freelance work totaling $800 or more over a 120-day period. Having a written contract acts as a freelancer’s first line of defense, setting clear expectations regarding the scope of work, payment rates and deadlines. Such clarity is intended to prevent misunderstandings and provide freelancers with a foundation to advocate for themselves if disputes arise. Written contracts transform verbal agreements into enforceable commitments for all parties.

Legal Recourse for Non-Payment and Late Payments

Perhaps most impactful is the act’s provision for handling non-payment and late payments. Freelancers now have the right to pursue legal action for double damages and attorney’s fees if they are not paid on time according to the terms of the contract. This aspect of the law not only compensates for potential financial losses but also discourages clients from withholding payment, knowing there could be legal and financial repercussions.

Protection Against Retaliation

Another significant feature of the Freelance Isn’t Free Act is the protection it offers against retaliation. Freelancers who assert their rights under a contract can do so without fear of intimidation or blacklisting by their clients. This protection ensures that freelancers can enforce their contracts and address grievances directly and without retaliation.

Conducting Internal Reviews and Audits

Regular internal process reviews and compliance audits are vital in ensuring that contractual engagements with freelancers remain within the legal bounds set by the Freelance Isn’t Free Act.

• Schedule Regular Compliance Audits: These audits should review all freelance contracts and payment records to ensure they adhere to legal standards.
• Feedback Mechanisms: Implement mechanisms for freelancers to report compliance issues. This feedback can be invaluable in rectifying processes and preventing potential legal problems.

Training and Development

To comply with the Freelance Isn’t Free Act, we highly recommend that companies educate their hiring managers and procurement teams about the nuances of the Act to prevent unintentional violations that could lead to disputes or legal challenges. Our recommendations include:

• Regular training sessions: Conduct workshops and training sessions that detail the act’s requirements and the company’s policies regarding freelance engagements.
• Update training materials regularly: Laws and regulations evolve and so should training content to ensure it remains current and comprehensive.

By adhering to these guidelines, companies can foster a compliant, respectful and mutually beneficial relationship with the freelancers they engage.

Additional Resources

To fully leverage the benefits and understand the obligations under the Freelance Isn’t Free Act, both freelancers and companies can access a variety of resources designed to guide and educate. Here are essential links and suggested materials to help navigate the complexities of this legislation effectively:

1. Freelance Isn’t Free Act on NYC.gov: The text of the law is available on the official NYC.gov website.
2. Filing Complaints: If a freelancer needs to file a complaint against a non-compliant company, NYC’s Department of Consumer and Worker Protection provides an online complaint form.
3. Legal Assistance: For those who require legal guidance, the NYC.gov site also offers links to free legal services.

Posted at MediaVillage through the Thought Leadership self-publishing platform.

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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.