NYC’s Freelance Isn’t Free Act (FIFA)

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Take Action Now – Understand Your Rights and Obligations

 Effective May 15, 2017Freelance word collage with related terms like independent worker, consultant, entrepreneur, free agent, project, assignment and profession

The Freelance Isn’t Free Act (“FIFA”) goes into effect on May 15, 2017. This law provides certain rights to freelance workers in New York City and instills certain obligations on businesses.

FIFA defines a freelance worker as “any natural person or any organization composed of no more than one natural person, whether or not incorporated or employing a trade name, that is hired or retained as an independent contractor by a hiring party to provide services in exchange for compensation.”
FIFA requires the following:
  • All contracts worth $800 or more must be in writing; this includes all agreements between the contractor and the hiring party in aggregate during any 120 day period.
  • The written contract is to include the name and mailing address for all parties; an itemization of the services to be provided and the value of those services; the rate and method of compensation; and the date that payment is due or the mechanism by which that date will be determined. If there is no specific date for payment, the default payment is 30 days from the date that the contractor completed the work.
  • The hiring party must retain a copy of the contract.

FIFA also prohibits retaliation. Specifically, a hiring party cannot “penalize, threaten, or blacklist” a contractor for asserting assert their rights under this law.

Excluded from the definition of freelance worker are certain sales representatives, attorneys and licensed medical professionals.

Contractors can file complaints for non-compliance or retaliation with The NYC Department of Consumer Affairs, Office of Labor Policy & Standards or directly in court..

Failure to comply with this law, may result in significant penalties including statutory damages, double damages, injunctive relief, and attorney’s fees.
For more information visit https://www1.nyc.gov/site/dca/about/freelance-isnt-free-act.page and/or review the Protecting New York City’s Freelance Workers Flyer.