On August 28th, the Freelance Isn’t Free Act (FIFA) took effect in New York, providing protections for freelancers. If you hire freelance workers for any service, this may apply to you. 

Under the Act, a freelance worker is an individual (or an organization consisting of one person) hired to provide services valued at $800 either in one contract or several with the same hiring party in the preceding 120 days. Freelance workers DO NOT include attorneys, licensed medical professionals, construction contractors, and sales representatives (per labor laws). Hiring parties DO NOT include local, state, and federal governments. 

The Act applies to contracts entered into starting August 28 and imposes requirements related to: 

• Contracts. The Act defines what must be included in a contract, who must receive a copy (both the freelancer and the hiring party), and more. A model contract is available via the NYS DOL website.
• Timely payments. Freelance workers must be paid by the date compensation is due under the contract. If the contract doesn’t specify a date, payment must be made within 30 days of when services are completed. 
• Recordkeeping. A hiring party must retain contracts for two or six years; otherwise, the freelancer’s terms and conditions will be presumed to be true, accurate, and agreed upon by both parties.
• Anti-retaliation. Discrimination and retaliation against a freelancer exercising or attempting to exercise their rights under the Act are prohibited. 

Failure to comply can result in restitution for the freelancer, civil actions, actions initiated by the NY Attorney General, and civil penalties ranging from $1,000 to $25,000 depending on frequency or pattern of violations. 

NOTE: New York City has its own Freelance Isn’t Free Act. While similar to FIFA, there are a few differences you should become acquainted with for freelance engagements in NYC. 

The preceding information only contains highlights of FIFA and should not be construed as legal advice. For complete information, consult with your legal counsel. 

Although Visions Human Resource Services professionals are not attorneys, we can help your business with a wide-range of people related programs, policies, and processes. Get in touch with us today to see how we can help your business be more successful. 

Authored by: Kelly M. Caldwell, SHRM-SCP, AWI-CH, IPMA-CP, Partner

Kelly M. Caldwell, SHRM-SCP, AWI-CH, IPMA-CP, Partner

With years of experience supporting employers in a broad range of industries, Kelly provides clients with practical, real-world advice, balancing compliance requirements with operational reality. She focuses on performance counseling, training, policies and procedures, employee handbooks, compliance audits, and workplace investigations.

Janet Giannetta, SPHR, SHRM-SCP, Partner

As a former compliance officer and CHRO, Janet is a seasoned executive-level human resources professional, often referred to as the “go to” person on local, state, and national workplace compliance issues. She regularly presents and counsels on issues such as recruiting, performance, terminations, harassment and discrimination.