New York’s Freelance Isn’t Free Act Takes Effect August 28, 2024

New York State’s Freelance Isn’t Free Act (NYS FIFA), signed into law by New York Governor Kathy Hochul last year, is set to go into effect on August 28, 2024. The new state law mirrors New York City’s law of the same name, which took effect in May 2017. NYS FIFA will only apply to contracts entered into on and after August 28, 2024. 

The new state law defines a freelance worker 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 any 120-day period. Sales representatives (as defined in New York Labor Law § 791-a), attorneys, licensed medical professionals and construction contractors are not considered freelancers and are thus not protected under NYS FIFA.

Under NYS FIFA, the hiring party must provide the freelancer with a written contract that includes specific terms of engagement between the parties, including names and mailing addresses of both the hiring party and the freelance worker; an itemization of all services to be provided by the freelancer; the value of the services to be provided; and the rate and method of compensation, among other specified terms.

Freelancers alleging violations of NYS FIFA can file an action in any court of competent jurisdiction, including the New York State Supreme Court. Claims alleging violations of NYS FIFA’s requirements regarding written contracts must be brought within two years. Actions to recover damages for other violations of NYS FIFA are subject to New York’s six-year statute of limitations for contract claims.

Hiring parties should review any existing contracts and contract templates to ensure that existing and future independent contractor arrangements are compliant with the new law. Hiring entities should take advantage of the Model Freelance Work Agreement provided by the New York City Department of Consumer and Worker Protection (DWCP).

Our Labor & Employment Law team is available to help hiring parties navigate compliance with the requirements of NYS FIFA and the analogous New York City law, in addition to providing other guidance regarding freelancers, independent contractors, employee classification and related wage and hour issues.

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