Protecting Freelancers
About one third of the American work force is now freelance. New York City has always been home to many freelancers—an estimated 1.3 million in 2017, when the first law in the nation to protect freelancers went into effect in the city. Since then, other municipalities have enacted similar laws.
The New York City law requires written contracts between freelancers and those who engage their services for at least $800 of work in a 120-day period. Freelancers must receive their pay within 30 days or by the date stated in the contract. They have the right to take legal action, without reprisal, should these conditions not be met.
Last November, five years after the Freelance Isn’t Free Act took effect, the New York City Department of Consumer and Worker Protection published a report summarizing experience with this law. It noted that freelancers filed more than 2,500 complaints in violation of the law. Most involved late payment or nonpayment. The Worker Protection department estimated that about half of the freelancers received payment after filing the complaint.
We’re not talking big dollar amounts. Half of the complaints were disputes about $5,000 or less. But when living project to project, as many freelancers do, missing payments could be the difference between rent and eviction.
In addition to payment issues, 264 freelancers reported that they did not have a written contract. Within five years after New York City’s Freelance Isn’t Free Act took effect, 212 freelancers alleged retaliatory actions when they complained about violations of the law.
Inspired by the New York City law, other municipalities have passed similar laws to protect the rights of freelancers. These statutes vary mainly in the dollar amounts that require a written contract. Minneapolis was the first to follow NYC’s lead, with a law that went into effect in January 2021. Subsequently, Seattle, Columbus, and Los Angeles passed similar laws. In August 2023, Illinois became the first state to pass a law protecting freelancers. It becomes effective two months after New York State’s Freelance Isn’t Free Act, which was signed on November 22, 2023, and becomes effective this May.
As someone who has been a freelancer for more than 35 years, I am pleased to see action taken to protect the rights of freelancers. And I am proud that my city started the movement.