“Freelance Isn’t Free Act” Expanded to All New Yorkers

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Michael J. Fortunato Benjamin S. Levine

December 4, 2023

On November 22, 2023, New York Governor Kathy Hochul signed New York state bill S5026, known as the “Freelance Isn’t Free Act,” building upon New York City’s 2016 law of the same name.  The new legislation is intended to protect freelance and contract workers, such as writers, editors, graphic designers, videographers, consultants, and temps, from wage theft and to ensure timely payment.

The new law becomes effective on May 20, 2024 and will require businesses state-wide to provide any freelance worker (excluding construction contractors, lawyers, and licensed medical professionals) with a written contract if the freelance work is worth at least $800, including work across multiple smaller projects over a 120-day period.  The new law requires a 30-day deadline for payment in full unless the freelancer and hiring party agree on another time frame.

The Act also establishes:

• a freelancer’s right to a written contract from a hiring party
• a freelancer’s right to protection from retaliation for exercising or attempting to exercise their rights under the Act
• a freelancer’s private right of action for violations of the Act with damages (including statutory and double damages, injunctive relief, and reasonable attorney’s fees and costs)
• an administrative process for the New York State Department of Labor (DOL) to investigate complaints
• the ability of the DOL to sue hiring parties on wage claims
• a right of action for the Attorney General against hiring parties for a pattern or practice of violations of the Act
• a public awareness outreach campaign, including making information available on the DOL website
• a reporting requirement by the DOL regarding the effectiveness of the Act at improving freelance contracting and payment practices

The new law will apply only to contracts entered into on or after the effective date of May 20, 2024.

New York employers who utilize freelance workers should seek counsel to update their policies and procedures prior to the implementation of the new law.

*Special thanks to Ava Petrellese, our Paralegal, for her contributions to this article.

This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice.  Always consult an attorney with specific legal issues.