As New York gears up to implement the “Freelance Isn’t Free” Act on May 20, it’s crucial for both employers and freelancers to grasp the key aspects of the legislation to ensure seamless compliance and mitigate potential conflicts. Here are the top three things to know, with insights from DC Employment Attorneys:
- Written Contract Requirements FOR EMPLOYERS: Under the Act, engaging freelance services totaling $800 or more, whether in a single project or cumulatively within 120 days, necessitates a written contract. This contract must expressly detail the services to be rendered, the rate and method of payment, and the payment due date. DC Employment Attorneys emphasize that having clear contractual terms is essential for legal clarity and dispute resolution.
FOR FREELANCERS: Before commencing work, it’s imperative to ensure a written contract is in place. This not only safeguards your entitlement to timely and agreed-upon payment but also serves as a definitive reference point in case of disagreements or breaches. DC Employment Attorneys recommend freelancers always insist on written agreements to protect their interests.
- Payment Obligations FOR EMPLOYERS: Adherence to payment terms is paramount. Payments must be disbursed on or before the specified date in the contract or within 30 days after service completion, whichever is earlier. Failure to comply can result in severe penalties, including potential double damages and legal fees payable to the freelancer. DC Employment Attorneys stress the importance of timely payment to avoid legal repercussions.
FOR FREELANCERS: Freelancers have the right to receive payments as outlined in the contract. If payments are delayed, the Act provides avenues to claim what is rightfully owed, potentially including additional compensation for delays. DC Employment Attorneys advise freelancers to assert their rights promptly if payment obligations are not met according to the agreed terms.
- Protections Against Retaliation FOR EMPLOYERS: The Act contains robust provisions against retaliation. Any actions perceived as penalizing freelancers for exercising their rights under the Act, such as harassment or denial of future work, are prohibited. Violations can result in serious legal consequences, including criminal charges. DC Employment Attorneys underscore the importance of respecting freelancer rights to avoid legal liabilities.
FOR FREELANCERS: Freelancers are shielded from intimidation or retaliation for asserting their rights under the Act, including filing complaints for non-payment or contract breaches. Understanding these protections empowers freelancers to work confidently and securely. DC Employment Attorneys encourage freelancers to be aware of their rights and take appropriate action if they face any form of retaliation.
The “Freelance Isn’t Free” Act marks a significant stride in recognizing and safeguarding the rights of freelancers in New York. By ensuring contracts are in place, payments are made promptly, and rights are protected against retaliation, employers and freelancers can foster more productive and secure professional relationships. Employers should review and adapt operational policies to align with these new legal requirements to evade penalties, while freelancers should acquaint themselves with the protections offered by this Act. Doing so enhances negotiation and enforcement capabilities, ensuring equitable treatment and compensation for freelance services, as emphasized by DC Employment Attorneys.