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SMALL BUSINESS NEWS

17 Apr 2017

 

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NYC Freelance Isn't Free Act (FIFA)

Freelancers in NYC will be required to have a signed contract with their Clients.

Starting May 2017 the City of New York will require all Freelancers to have a signed contract in place with their clients if the total value of their work is $800 or more within a 120 day period [from the same client].

According to the new law the written contract shall include, at a minimum, the following information:

 

1. The name and mailing address of both the hiring party and the freelance worker;

 

2. An itemization of all services to be provided by the freelance worker, the value of the services to be provided pursuant to the contract and the rate and method of compensation; and

 

3. The date on which the hiring party must pay the contracted compensation or the mechanism by which such date will be determined.

The new law will prohibit Unlawful payment practices.  Clients will be required to pay their freelance contractors as follows:

 

1. On or before the date such compensation is due under the terms of the contract; or

 

2. If the contract does not specify when the hiring party must pay the contracted compensation or the mechanism by which such date will be determined, no later than 30 days after the completion of the freelance worker’s services under the contract.

Once a freelance worker has commenced performance of the services under the contract, the hiring party shall not require as a condition of timely payment that the freelance worker accept less compensation than the amount of the contracted compensation.

The law also prohibits retaliation for freelancers who exercise their rights under this law. 

Any freelance worker who believes that their hiring party is not complying with this law may file a complaint with the Director of Labor within two years.

A plaintiff who prevails on a claim alleging a violation shall be awarded damages [$250 or value of contract] and an award of reasonable attorney’s fees and costs.

Sources:
Freelance Isn't Free Act (FIFA)


By Bill Williams

 

 

 

 

 

 

 

 

 

 
 

 

  
 

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