Freelance Isn’t Free Act

ABSTRACT

The New York State Department of Labor is announcing that the Freelance Isn’t Free Act (FIFA) is taking effect throughout New York State this August.  The act requires a written contract between all employers and their freelance hires.  This act largely mirrors New York City legislation that went into effect in 2017.

FREELANCE ISN’T FREE ACT

            Clients will know that I regularly suggest drafting contracts for freelancers and independent contractors to outline expectations of both parties and firmly establish the legal relationship between the employer and employee.  Since 2017, New York City employees have been required to draft such agreements when hiring freelancers.  Now the same requirement goes into effect throughout New York State.

            Freelance workers are any person or organization composed of one person hired as an independent contractor to provide services when those services are valued at least $800.  If the same freelancer is being hired for multiple jobs then all contracts for services within 120 days of the initial service will be aggregated to determine the value. 

            Also, employers must provide a digital or physical copy of the contract to the freelancer and maintain their own copy for six years.  If a copy is not preserved, the freelancer’s own understanding of the terms of the agreement will be presumed true.  This creates significant liability on behalf of the hiring party.

            This is only an overview of the act as it goes into effect on August 28, 2024.  I recommend clients review their current contracts and employment relationships to determine if this act may affect them.  Any questions should be directed to myself or another employment attorney.