Last month, New York City Mayor Bill de Blasio signed into law Int. No. 1017-C, dubbed the Freelance Isn’t Free Act (“Act”), a unique law that provides penalties for failure to follow certain standards in contracting with and paying freelance workers.

The Act defines a “freelancer” as any natural person or one-person organization that is hired or retained as an independent contractor.  The term excludes lawyers, medical professionals, and some sales representatives.

Any contract for freelance work must be in writing if the freelancer provides at least $800 worth of services over a 120-day period.  The contract must include an itemization of the freelancer’s services, and the date on which the hiring party will pay the freelancer, or the mechanism by which a date for payment will be determined.

A hiring party is prohibited from requiring a freelancer to accept less than the contracted amount once the freelancer has started to provide the services agreed upon.

Freelancers may bring a civil suit against hiring parties for violations of the Act, including failure to make timely payment.  Freelancers may also bring an administrative suit by filing a complaint with the New York City Office of Labor Standards (“OLS”).  A prevailing freelancer is entitled to reasonable attorneys’ fees and costs.  In addition, the Act imposes a $25,000 civil penalty, payable into the City’s general fund, for hiring parties found to have a pattern or practice of violating the Act.

OLS will provide model freelance contracts on its website.  Employers that use independent contractors for services totaling more than $800 within a 120-day period should review contracts to ensure they contain the required terms, prepare to pay for those services promptly, and train human resources and contract administration staff on the Act’s requirements.