Independent Contractor Arrangements Changes In New York State

Freelance worker. What exactly does that mean? According to the New York City Worker and Protection website, a freelance worker is a person or organization (no more than one person) hired or retained as an independent contractor to provide services for compensation of $800 or more.

FIFA, the Freelance Isn't Free Act enacted by New York State has expanded protections to freelance workers, imposing several requirements for persons and companies that hire freelance workers as of August 28, 2024.

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Senate Bill S5026, signed by New York State Governor Kathy Hochul, summarizes as such:

Enacts the "freelance isn't free act"; provides for the payment of freelance workers as independent contractors, including requiring written contracts; timely payment of compensation and handling controversies relating to payment, complaint procedures, and penalties; excludes construction contracts.

The Littler.com website notes that independent contractors and businesses that hire freelance individuals should become familiar with the new protections, obligations, implications, and potential risks of non-compliance.

What Is A Company Responsible For When Hiring An Independent Contractor?

According to Littler.com under FIFA, the hiring party requires four specific items:

• Written contract requirements
• Payment of compensation to freelance workers
• Recordkeeping requirements
• Anti-discrimination

Non-compliance of the hiring party or company could result in the independent contractor's recovery of double damages and attorney's fees/costs, among other remedies.

For more information, visit Littler.com, and the NYS Senate Bill S5026 website.