As the gig economy continues to expand, many New Yorkers are turning to freelancing to earn an income. When employers violate wage and hour laws for freelancers in New York City, they may have the right to pursue compensation under the Freelance Isn’t Free Act. You may have a legal right to pursue compensation if you are a freelance worker and haven’t been paid in full or on time.
The employment attorneys at Lipsky Lowe understand the vital role freelance workers play in New York City. We believe they are entitled to be paid in full and on time for their work. Our legal team has a proven track record of holding individuals and businesses accountable for wage and hour violations involving freelance workers. We’re prepared to help you enforce your rights and pursue the maximum compensation possible in your case.
Freelancers Face Unique Payment Challenges
Freelance workers are an integral part of the economy, making up one-third of New York City’s workforce. The Freelancers Union and Upwork joined the New York City Mayor’s Office to comprehensively study those participating in the freelance workforce. The survey found that roughly 1.3 million people, or 34 percent of the workforce in New York City, worked as freelancers.
Freelance workers are not paid an annual or hourly salary and are not considered employees. Instead, they are classified as independent contractors or temporary workers. The survey also found that freelancers face unique challenges, including unpredictable income and fair pay. Approximately 75 percent of freelancers have experienced non-payment or late payment for their services.
Freelance Workers Have a Right to Be Paid Fairly and On Time
New York City’s Freelance Isn’t Free Act (FIFA) took effect on May 15, 2017. FIFA provides freelance workers with new protections by giving most freelancers the right to receive timely payment for their work. The Act also gives freelancers the right to obtain a written agreement for their work. Additionally, the law prohibits hiring parties from retaliating against freelancers for seeking payment in a timely manner or for requesting a written contract. Not all freelance workers are covered by the act, but it does provide powerful remedies for freelancers.
What Rights Does New York’s “Freelance Isn’t Free Act” Give Freelance Workers?
The Freelance Isn’t Free Act gives freelance workers the right to a written contract when the value of the freelancer’s contracted work is at least $800 in any 120-day period. The contract must clearly state the agreed-upon work, the method and rate of payment, and the payment date. It must be in writing and include a mechanism by which the payment date will be determined if it hasn’t been decided when the parties sign the contract. Freelancers cannot voluntarily waive their legal rights under the Act.
The Act requires businesses to pay freelancers for all their completed work on or before the date specified in the contract. If the contract doesn’t specify a payment date, the freelancer must be paid within 30 days of completing the work. Freelancers have the right to file a complaint with the Office of Labor Policy & Standards (OLPS) if the hiring individual doesn’t comply with the law. Hiring parties can’t retaliate against freelancers for exercising their rights under the law. Retaliation includes blacklisting, harassment, threats, intimidation, or efforts to sabotage the freelance workers’ business connections.
New York City’s Freelance Isn’t Free Act
New York State recently updated its Freedom Isn’t Free Act, and the updates went into effect on May 20th, 2024. The new state law aligns with a similar law passed by New York City 7 years ago. New York City’s law only applies when the freelancer will be completing at least $800 of work within any 120-day period. However, New York City’s law clarifies that the $800 value is measured by the value of the freelancer’s work on a single project or when combined with all other contracts between the freelancer and the hiring party within 120 days. The city and state versions of the law exclude sales representatives, lawyers, and licensed medical professionals from being classified as freelance workers. New York State’s law also excludes construction contractors from being considered freelance workers.
Pursuing a Claim As a Freelance Worker in New York City
There are two options when a freelance worker believes the hiring individual or business has violated the law. The freelancer can file a complaint with the Office of Labor Policy & Standards (OLPS) or file a claim directly in court. If the worker chooses to file a claim with the OLPS, they will notify the hiring party that a complaint has been filed against them. The hiring party will have 20 days to respond in writing. If they don’t respond, the worker has the right to sue in court. The court will presume the hiring party violated New York law because they failed to respond to the notice of the complaint.
At this point, the hiring party has the burden of proving they didn’t violate the law. When workers choose to go directly to court to file a claim, they lose the right to file a complaint with the OLPS. However, the OLPS does offer a program that provides information to freelancers to help them understand and protect their rights. They cannot provide legal advice or represent the freelancer in court, so it’s important for the freelancer to hire an experienced employment attorney who can.
Damages Available Under the Freelance Isn’t Free Act
Successful claimants can recover several different types of compensation. Compensation includes statutory damages, injunctive relief, double damages, attorneys’ fees, and costs. When the freelance worker can show evidence that the hiring party has engaged in a pattern or practice of violations, the New York City Corporation Counsel can seek an additional civil penalty of up to $25,000 against the hiring party.
Contact an Employment Attorney in New York
Are you a freelance worker in New York City who hasn’t been paid on time or in full for your services? You will benefit from speaking to an employment attorney. You may have the right to file a claim against the hiring party who hasn’t paid you. Depending on your case, you could be entitled to significantly more than the value of your unpaid work. Don’t hesitate to contact Lipsky Lowe to schedule a complimentary, no-obligation case evaluation with a skilled attorney.