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Late last year, New York City enacted the “Freelance Isn’t Free Act” establishing and enhancing protections for independent contractors. This is the first such law in the United States. Effective summer 2017, the law gives freelance workers – independent contractors – the right to a written contract, the right to be paid timely and in full, and the right to be free of retaliation. More recently adopted rules define several terms in the act and impose further restrictions on independent contractor agreements.
Foremost, the new rules prohibit freelancers from waiving certain specified rights. The act also prohibits retaliation against freelancers for exercising rights under the new law. Retaliation is broadly defined to include threats, intimidation, discipline, harassment, denying work opportunities, discrimination, or penalties or other action that is reasonably likely to deter a freelancer worker from exercising or attempting to exercise his or her rights or from obtaining future work opportunity for having done so. Also included as retaliation is adverse action relating to perceived immigration status, as well as adverse actions taken against a freelancer by “any person” – regardless of whether that person is a party to a contract with the freelancer.
Another provision of the act requires a written contract when a freelancer is retained and the contract has a value of $800 or more, either by itself or when aggregated with all contracts for services between them during the preceding 120 days. The “value of the contract” is now defined to mean the reasonable value of all actual or anticipated services, costs for supplies and any other expenses under the contract.
New York City employers should review their independent contractor agreements to confirm they comply not only with the “Freelance Isn’t Free Act” but also with the restrictions imposed by the rules. In other states and countries, employers may want to investigate if similar acts are being contemplated on a regional or municipal level, and prepare accordingly. Visit with your Ally Law member firm employment law department to answer these and other employment, labor law, and benefits questions. Ally Law member firms around the globe offer comprehensive consulting on all your business and employment law needs.
For more information about our services in this area, contact us at yourally@ally-law.com.
Click here for the complete article by Angela J. Gibson and Michael C. Griffaton of Ally Law member firm Vorys Sater Seymour & Pease LLP.
