New York State employers: Since we have been talking about independent contractors this week on PERKS, a reminder that late last year, Governor Hochul signed into law New York State’s version of the “Freelance Isn’t Free Act,” largely mirroring New York City’s 2017 law of the same name.
The text of the law can be found here: Bill Search and Legislative Information | New York State Assembly
Beginning on May 20, 2024, employers in all of New York State will have to provide a written agreement to freelance workers outlining such key terms as rate and schedule of payments, names and addresses of the parties to the agreement, and specifics about the services to be performed. The law also establishes new legal claims and penalties for non-payment.
Businesses in New York State that utilize independent contractors should review their form contractor agreements to ensure compliance with the Act’s contract requirements. We also recommend that businesses carefully draft provisions regarding payment timing to avoid disputes over the contractor’s right to payment that could implicate the Act.
As always, a critical reminder to also carefully analyze independent contractor (as opposed to employee) status before entering into a freelance/independent contractor arrangement.