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By: Hellen Zaboulani
Some 2 million freelance workers across New York won a significant victory last week, when a new state law was enacted to protect their rights. As reported by Crain’s NY, on Wednesday, the bill was signed into law by Gov. Kathy Hochul. Last year, the governor had vetoed the same bill when it had landed on her desk, citing cost concerns.
The “Freelance Isn’t Free” law, sponsored by Brooklyn State Senator Andrew Gounardes, takes aim at helping to address independent workers’ frequent complaints of missing and late payments. The law now requires employers to provide contracts for freelance work which will amount to more than $800 within a four-month period. Employers will also be on the hook to make payments by the due date listed in the contract — or if not specified, within 30 days of the work’s completion.
The law gives the freelancers the right to bring complaints to the state attorney general’s office or to seek damages in a court of law, if an employers fails to comply with the new rules. They can ask for damages worth double the amount billed. The bill will also bar employers from offering less money than promised in exchange for a faster payout — which freelancers complain has become a frequent occurrence. The new state law is based closely on a city law that was enacted in 2017, which has helped over 700 freelancers to recoup at least $3 million in wages they were stiffed for by their employers, Crain’s reported.
Gounardes, a Democrat who has served in the Senate since 2019, said he was “ecstatic” that the bill got the governor’s approval. “This will help protect more than 2 million freelancers across the state and give them peace of mind knowing that they’ll provide a service and actually be able to get paid for it,” he said in an interview. “This is really a game-changer.” Gounardes pointed to the similar city law enacted saying its success is underestimated in that it helps move employers to pay workers on time in the first place, just knowing that they could face a lawsuit. “What’s been so successful about the city is not the number of cases that have been litigated, but the number of cases that have been avoided,” said Gounardes.
Per Crain’s, last December, Gov. Hochul had vetoed the same bill, saying that the state’s Department of Labor did not have the funding or resources to investigate such complaints. This time, Hochul and lawmakers agreed that instead, the Attorney General’s office would be made responsible for the burden of enforcement. New York is the second state to enact a law to protect freelancers. Illinois was the first state in the country, having passed similar legislation in August.
A recent survey of about 400 freelancers across the country found that a whopping three-quarters said they do not get paid on time. Close to 60 percent of the freelancers said they are owed over $50,000 for work they already completed, as per the Independent Economy Council, a workers’ advocacy group.
Labor groups, which supported this legislation, are still waiting to hear about a number of other bills which are waiting for Gov. Hochul’s approval. The governor has till Dec. 31 to sign or veto the bills.
