By: Ty Hyderally, Esq. and Lorena Meza

After years of lobbying and legislative wrangling, New York’s Freelance Isn’t Free Act (FIFA) is poised to change the game for gig workers nationwide. Signed by Governor Kathy Hochul and slated to go into effect on Aug. 28, 2024, FIFA vastly expands protections for freelancers and independent contractors enacted by similar legislation in New York City in 2016.

“Freelance worker” under FIFA means any individual or sole proprietorship hired as an independent contractor for $800.00 or more worth of services within any given 120-day period.  Professions like lawyers, doctors and construction contractors are still excluded.  Meanwhile, virtually any person or entity engaging freelancers falls under a “hiring party” umbrella, subject to FIFA’s provisions.

Among the FIFA requirements, freelancers need to have a written contract with those who hire them. This contract should cover key aspects such as the particulars of the parties, the kind of services to be rendered, the rates applicable, the terms of payment, and the dates by which the services will be rendered. Without the contract, the freelancer risks being fined, or the contract he is presenting is assumed to be the terms in case there is no proper contract on record. Freelancers are also entitled to compensation either on the date specified in the contract or within 30 days of service completion if no date is specified. The law also bans contracts that contain clauses that reduce agreed-upon compensation or restrict taking action due to retaliation if a freelancer exercises their rights.  Further, the law provides provisions for freelancers to file complaints with the Department of Labor, if they feel their rights under FIFA have been violated.

With regard to enforcement and penalties, FIFA provides numerous remedies.  As noted above, a freelancer can file a Complaint with the Department of Labor.  Alternatively, the freelancer can file a lawsuit and recover damages and reasonable attorney’s fees and costs if a violation is proven. Additionally, FIFA provides for provisions where the Department of Labor may impose civil and criminal penalties and the New York state Attorney General’s office can impose fines of $25,000.

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