Summary of New York’s Freelance Isn’t Free Act

​New York has recently passed new legislation, The Freelance Isn’t Free Act (“FIFA”), which was effective as of August 28, 2024 and is intended to provide certain protections to freelancers and independent contractors.

Freelance Workers and Exceptions

FIFA protects any freelancers that contract to provide services for an amount equal to $800 or more, either for a single project or contract, or for multiple services within a 120-day period.  Certain professionals, including sales representatives, attorneys, medical professionals, and construction contractors, are excepted from FIFA.

Requirements under FIFA

FIFA requires freelancers to be paid on the due date specified in the contract, or if no due date is specified, then no later than 30 days after services are completed.
A hiring party must provide a written contract to the freelancer.  The definition of “hiring party” is broad and includes any small or large organizations, though the federal, state, and local government are exempt.  Contracts must contain:

1. the parties’ names and addresses; 
2. an itemized description of all services to be provided, including the value of the services under the contract and the rate and method of compensation; 
3. the payment date or mechanism by which the payment date will be determined; and 
4. the date by which the freelancer must provide a list of services to the hiring party to meet any deadlines for the purpose of being compensated.

​The hiring party must keep the contract for six (6) years and present the same upon request of the attorney general’s office.  If the hiring party fails to present the contract when requested, the terms presented by the freelancer shall be presumed to be the terms upon which the parties agreed. 

Anti-Discrimination or Retaliation

​FIFA prohibits the hiring party from discriminating or retaliating against, denying a work opportunity to, threating, harassing, intimidating, disciplining, harassing, or penalizing any freelancer for exercising or attempting to exercise their rights. 

Damages and Penalties

​The attorney general may investigate any alleged violations of FIFA and impose penalties ranging from $1,000 for the first offense to up to $25,000 for repeated patterns or practices of violations.
Freelancers can bring a private action against the hiring party within six (6) years for discrimination and retaliation, as well as nonpayment claims seeking double damages, injunctive relief, and/or reasonable attorneys’ fees.  Alternatively, freelancers can file a complaint with the Department of Labor, which may impose civil or criminal penalties.