Freelance Isn't Free Act: Empowering Freelancers with Resources

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Credit: pexels.com, Contemporary netbook with empty screen for convenient freelance work against blue striped wall

The Freelance Isn't Free Act is a game-changer for freelancers, providing them with essential resources to navigate the world of independent work.

This law requires clients to pay freelancers on time and in full, eliminating the risk of late payments and non-payment.

For freelancers, timely payments are crucial to their financial stability and ability to plan for the future.

The Act also protects freelancers from exploitative contracts and clauses that can be detrimental to their interests.

Freelancers can now focus on their work without the added stress of worrying about being paid fairly.

Intriguing read: Regulation Z Banking

The Freelance Act

The Freelance Act is a game-changer for freelancers in New York City. Freelance workers must file a complaint within two years of the violation for failure to provide a written contract, but they have six years to file a complaint about non-payment, underpayment, or an act of retaliation.

The Freelance Isn't Free Act covers most freelancers, including those who perform multiple jobs for the same client. For example, if you perform four jobs for one client over the past four months, you have protections under the Freelance isn't Free Act.

For more insights, see: Freelance Business Insurance

Credit: youtube.com, Worksome Exclusive: Rafael Espinal Explains 'Freelance Isn't Free Act'

A hiring party can be fined $250 for breaching a written contract, and repeat offenders could face legal action from the City and OLS, as well as civil penalties up to $25,000. This is a serious consequence for hiring parties who don't take freelancers' rights seriously.

Freelancers can take their claims to court or file a complaint with New York City's new Office of Labor Standards (OLS). These government offices can help collect what you are owed under the contract, but you must proceed to court to collect double damages.

The Freelance Isn't Free Act covers freelance workers regardless of their immigration status, making it a vital protection for immigrant freelancers.

Your Rights and Protections

You have rights as a freelancer, regardless of your immigration status. All contracts worth $800 or more must be in writing, including the work you'll perform, pay, and payment date.

A written contract is essential to protect yourself. DCWP has created a model contract that includes the required terms and optional terms for different work types and arrangements.

Credit: youtube.com, New Protections for Freelancers in New York State: The Freelance Is Not Free Act

The hiring party must pay you for all completed work on or before the payment date listed in the contract. If the contract doesn't specify a payment date, they must pay within 30 days after completing the work.

You have the right to file a complaint with DCWP if the hiring party doesn't pay you on time or retaliates against you.

Here are the steps to file a complaint with DCWP:

  • Use DCWP Online Services to file a complaint online
  • Use DCWP Online Services to ask a question online or contact DCWP in one of the following ways:

+ Phone

+ Email

+ Mail

If your complaint is still unresolved, you can sue the hiring party in court. If the hiring party didn't respond to DCWP, the court will assume they violated the law unless they can prove otherwise.

Note: If you're not timely paid for your work, you have the right to collect double the amount you weren't paid, damages for retaliation, and payment of attorneys' fees and costs.

Curious to learn more? Check out: Do Prenuptial Agreements Hold up in Court

Payment and Contract Issues

Freelancers have the right to be paid by the due date in the contract, and if there is no due date, the hiring party must pay the freelancer within 30 days after completion of the services listed in the contract.

Credit: youtube.com, Do You Know Your Rights as a Freelancer?

The Freelance Isn't Free Act requires that the contract between the freelancer and the hiring party be in writing, and it must include specific details such as the parties' names and mailing addresses, an itemization of services to be provided, and the "value of services to be provided."

The contract must also include a description of the rate and method of compensation, and the date when the hiring party must pay the compensation or the mechanism by which such date will be determined.

A hiring party is not allowed to demand that a freelancer accept less money in order to be paid on time once the freelancer has started performing services under the contract.

Freelancers can receive damages up to double the amount of their contract if they are underpaid, not paid, or paid late. For example, if a freelancer is owed $30,000 and the hiring party pays only $15,000, the freelancer can receive $5,000 on the original contract plus a penalty of $20,000, for a total of $25,000.

Here are some key points to remember about payment and contract issues under the Freelance Isn't Free Act:

  • The hiring party must pay the freelancer by the due date in the contract, or within 30 days after completion of services if no due date is specified.
  • The contract must be in writing and include specific details such as the parties' names and addresses, services to be provided, and rate and method of compensation.
  • Freelancers can receive damages up to double the amount of their contract for underpayment, non-payment, or late payment.

Penalties and Consequences

Credit: youtube.com, Freelance Isn't FREE Act - Freelancers Rights

If the hiring party doesn't pay on time, a freelancer can take them to court and be awarded double damages – two times what they were supposed to be paid under their contract.

The Freelance Isn't Free Act protects freelancers from underpayment, non-payment, or late payment, which can lead to higher damages if the hiring party doesn't provide a compliant contract.

A freelancer who wins their case can receive reasonable attorney's fees and costs, which can help offset the costs of litigation.

The law also shields freelancers from retaliatory behavior, including poor performance reviews, harassment, intimidation, and other threatening behavior if they file a complaint against a hiring party.

Resources for Workers

If you're a freelance worker in NYC, you're in luck because there's a resource available to help you navigate the Freelance Isn't Free Act. DCWP (Department of Consumer and Worker Protection) has a Navigation Program to provide assistance and information when you file complaints or have questions about the law.

Discover more: Agency Worker Law

Credit: youtube.com, Jess Perez Freelance Isn't Free Act Testimony

DCWP offers a list of attorneys who provide legal services for workers or can help connect you to an attorney. This list is not exhaustive, but it's a good place to start if you need help.

You can also download the Navigation Program Guide for Freelance Workers, which was last updated on March 15, 2021. This guide is a helpful resource to have, especially if you're new to freelancing in NYC.

If you have questions about the court process or need help with a complaint, DCWP's Navigation Program is here to help. You can read their FAQ section, which was last updated on May 14, 2018, for more information.

If you're looking for a brochure on protecting NYC's freelance workers, you can download it in English or other languages, including Spanish, Arabic, and Chinese. The English version was last updated in October 2023, while the other languages were last updated in June 2017.

Here are some languages in which you can download the Protecting NYC's Freelance Workers brochure:

  • English (Updated 10/2023)
  • Other Languages (06/2
  • Español (Spanish)
  • العربية (Arabic)
  • বাংলা (Bengali)
  • 中文 (Chinese)
  • Français (French)
  • Kreyòl Ayisyen (Haitian Creole)
  • हिन्दी (Hindi)
  • 한국어 (Korean)
  • Język Polski (Polish)
  • Português (Portuguese)
  • ਪੰਜਾਬੀ ਦੇ (Punjabi)
  • Русский (Russian)
  • Tagalog (Tagalog)
  • ردو (Urdu)

Carlos Bartoletti

Writer

Carlos Bartoletti is a seasoned writer with a keen interest in exploring the intricacies of modern work life. With a strong background in research and analysis, Carlos crafts informative and engaging content that resonates with readers. His writing expertise spans a range of topics, with a particular focus on professional development and industry trends.

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