Written Contracts for Freelance Workers Now Required in New York State
New York’s Freelance Isn’t Free Act (“FIFA”) went into effect on August 28, 2024. The law requires anyone hiring freelance workers to enter into written agreements for projects valued at $800 or more. The $800 threshold can be met by one service, or as the combined total for multiple services within 120 days.
Who is a Freelancer?
“Freelance worker” is broadly defined as almost any person or organization hired as an independent contractor to provide services. The definition excludes sales representatives, lawyers, medical professionals, and construction contractors.
Who is a Hiring Party?
“Hiring party” includes any person or company who retains a freelance worker to provide any service. The law does not apply to federal, state, or local governments.
What Must be Included in the Written Agreement?
The written agreement must include at least the following information:
- The name and mailing address of the hiring party and freelance worker;
- The services to be provided by the freelance worker and payments to be made by the hiring party;
- How and when the hiring party will pay the freelance worker; and
- Deadlines for the freelance worker to submit reports or invoices to the hiring party for timely payment.
Hiring parties and freelancers may want to include additional provisions relating to any late payments, changes to the project, termination of the agreement, protection of confidential information, and other areas of potential disputes.
The law prohibits any hiring party from harassing, discriminating against, threatening, intimidating, disciplining, or denying work opportunities to a freelance worker for exercising, or attempting to exercise, their rights under the law.
Freelance workers have the right to file a claim with the NYS Attorney General or in court for violations of FIFA.
We previously reported on FIFA when it was passed by the NYS Legislature, here. As we noted, New York City has had a similar law in effect since 2017.
If you have questions or concerns about the NYS or NYC Freelance Isn’t Free Act, or questions or concerns about your rights as hiring party, employee, or independent contractor, please contact Chaim Book at CBook@booklawllp.com, Sheryl Galler at SGaller@booklawllp.com, or Nadav Zamir at NZamir@booklawllp.com.
