By James Bouklas
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04 Sep, 2019
In 2017, New York City enacted the Freelance Isn’t Free law, protecting freelancers from their clients who don’t pay them timely or in full. Technically, freelancers, also known as contractors, are not employees under federal law and under New York law. This means that contractors and freelancers do not receive protections under the New York Labor Law or the FLSA. However, many people now work as contractors or freelancers full-time, including Uber and Lyft drivers, construction workers, maids and cleaners, art designers, and workers in many other industries. The Freelance Isn’t Free law adds protections for contractors where there weren’t any before, and this covers employees in Manhattan, Brooklyn, Queens, Bronx, and Staten Island. Freelancers and contractors are covered under this law and have labor law protections for the first time . You can be a sole proprietor (which means you don’t have a company), or you can have an LLC or corporation that you use to bill your clients. Must Be Paid Within 30 Days: clients must pay contractors and freelancers within 30 days of the completion of the work, unless the contract specifies another timeframe, and then the payment is due timely in accordance with the date in the contract. Must Have A Contract: clients must use a contract for freelancers and contractors for work that is over $800. Must Pay What Is Owed: clients cannot require that a freelancer or contractor accept a payment of less than what is owed in exchange for timely payment. If a client tries to pay you a portion of what is owed, then you can still sue for the remainder. Protection Against Retaliation: clients cannot retaliate against a freelance or contractor for exercising their rights in seeking payments. Examples of retaliation is the termination of other contracts by the client or intimidation, discipline, harassment, or other penalties. 2X Damages and Attorneys’ Fees: freelancers and contractors are entitled to twice the money that they are owed when a client fails to pay them timely, in addition to attorneys’ fees. These are the same protections as afforded under the New York Labor Law. Bouklas Gaylord LLP has successfully represented clients in recovering funds that they are owed from their employment, whether freelancers/contractors or employees, having settled or recovered over $1,000,000 in the past 12 months alone. Contact us today for a free consultation.