New York City recently passed a law, the Freelance Isn’t Free Act (FIFA), that specifies how business is to treat freelancers. This will go into effect in May of 2017. Therefore, if you are a NYC business or hire someone who lives there, you may be subject to the law. In order to be a freelancer, you still must be considered an independent contractor.
Written Agreement
The law requires a written agreement for all independent contractors. Additionally, the agreement is mandatory for anyone being paid more than $800 over a four-month period.
The agreement must contain:
List of Freelance Services
The agreement must contain a list of services with a value ascribed to each of the services.
Compensation Rate
The agreement must also have the rate and method of compensation.
Payment Timing
The agreement must contain a specific payment date. Also, it can be no later than 30 days after the work is complete.
Enforcement
The law denotes the labor rights of freelancers and will be enforced by the Department of Consumer Affairs. Furthermore, the law provides for enhanced damage awards and attorney fees for freelancers who are found to have been damaged by an employer.
Next Steps
Freelancers will need to have new agreements in place with their clients in the Spring of next year if they are not already in compliance with the law. Additionally, freelancers will now be able to use the Consumer Affairs department for assistance in the case of employer non-payment.
Employers will need to review their independent contractor process to make sure they are in compliance. In addition, they should make sure that they review any agreements already in place for compliance.
If you have any questions, contact us.
