As noted in our prior Video Legal Briefing from January, 2024
the Freelance Isn’t Free Act became law in 2024, although there were a series of technical changes needed to be incorporated into the law.
The technical changes to the law have been made and the Freelance Isn’t Free Act is now in effect. This new law provides protections to freelance workers, including a series of contractual requirements and a formal enforcement process. For clarification purposes, a “freelance worker” is specifically, and formally, defined by the new law (New York General Business Law) as follows:
"Freelance worker" means any natural person or organization composed of no more than one natural person, whether or not incorporated or employing a trade name, that is hired or retained as an independent contractor by a hiring party to provide services in exchange for an amount equal to or greater than eight hundred dollars, either by itself or when aggregated with all contracts for services between the same hiring party and freelance worker during the immediately preceding one hundred twenty days, but does not include: (a) any person who, pursuant to the contract at issue, is a sales representative as defined in section one hundred ninety-one-a of the labor law; (b) any person engaged in the practice of law pursuant to the contract at issue and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth or the District of Columbia and who is not under any order of court suspending, enjoining, restraining, disbarring or otherwise restricting such person in the practices of law; (c) any person who is a licensed medical professional; or (d) any person who is a construction contractor.”
One of the specific requirements under the new law is that when a hiring party retains a freelance worker, the parties shall enter into a written agreement. The New York State Department of Labor has recently issued a model agreement that can be utilized for parties to meet the necessary contract requirements - and here is a link to the model agreement:
This agreement will need to be tailored to fit the specific circumstances of any freelance relationship but it is a good starting point to meet the new law’s compliance obligations.
Our firm has extensive experience counseling individuals, businesses, and others on statutory and regulatory requirements, as well as preparing and implementing applicable policies and agreements. If you have any questions related to this Legal Briefing, please contact any member of our firm at 585-730- 4773.
This Legal Briefing is intended for general informational and educational purposes only and should not be considered legal advice or counsel. The substance of this Legal Briefing is not intended to cover all legal issues or developments regarding the matter. Please consult with an attorney to ascertain how these new developments may relate to you or your business. © 2024 Law Offices of Pullano & Farrow PLLC
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