Attention Hiring Parties: New York State’s Freelance Isn’t Free Act

On November 22, 2023, New York Governor Kathy Hochul signed into law the Freelance Isn’t Free Act, effective May 20, 2024, which states that all agreements between freelancers/ independent contractors and hiring parties must be reduced to writing. This new state law is nearly identical to New York City’s Freelance Isn’t Free Act, which has been in effect since 2017. 

Under the new law, a freelance worker is defined as a person or single-member organization hired or retained as an independent contractor to provide services in exchange for an amount greater than or equal to $800 in a 120-day period.

When the law takes effect, the freelance worker must be provided with a copy of the contract, either physically or electronically, and the hiring party must retain the contract for at least six years. The law also sets forth rules regarding freelancer pay frequency. Freelance workers must be compensated on or before the date when compensation is due under the terms of the contract or no later than 30 days after the completion of the freelancer’s services. The new law further prohibits retaliation against freelance workers who exercise or attempt to exercise their rights under the law. 

Hiring parties should ensure that arrangements with freelancers are compliant and update any freelancer contract templates to include all necessary information. Employers should also take this time to review payment practices.

Our Labor & Employment Law team is available to help employers navigate the Freelance Isn’t Free Act and compliance with this new statute, as well as provide other guidance regarding freelancers, independent contractors and all other employment-related matters.

For more details about the Freelance Isn’t Free Act, see our Client Alert below.