The “Freelance Isn’t Free” Act, initially passed in New York City in 2017, has been a significant step forward in protecting the rights of freelancers and independent contractors. The law mandates timely payment and written contracts for jobs over $800 and introduces penalties for non-compliance.
As of 2024, this Act has several important updates that freelancers and businesses need to be aware of.
Expanded scope and coverage
One of the key updates for 2024 is the expansion of the Act’s coverage. Previously, the law had been applied to freelancers working in New York City. However, as of 2024, the protections now extend to any freelance work performed for companies based in New York, regardless of where the freelancer is located. This expansion aims to offer broader protection to the growing number of remote workers and ensures that more freelancers can benefit from the law’s provisions.
Stricter penalties for non-compliance
Another crucial update involves stricter penalties for companies that fail to comply with the law. In 2024, fines for non-payment, late payment or failure to provide a written contract significantly increased. The law now also grants additional compensation to freelancers who successfully pursue claims against non-compliant companies. These changes are intended to reinforce the importance of compliance and deter companies from mistreating freelancers.
Enhanced enforcement mechanisms
The 2024 updates also introduce enhanced enforcement mechanisms. The New York City Department of Consumer and Worker Protection (DCWP) has been given additional resources to investigate claims and enforce the law more effectively. This includes a streamlined complaint process and quicker dispute resolution times. Freelancers can expect more robust support from the DCWP to uphold their rights.
The 2024 updates to the “Freelance Isn’t Free” Act significantly strengthen protections for freelancers working with New York-based companies. With broader coverage, stricter penalties and enhanced enforcement, the Act continues to be a crucial tool in advocating for the fair treatment of independent contractors.