More and more regulations are added for employers that hire independent contractors, freelancers and other gig economy workers.
California (CA) – Freelance Isn’t Free Act (AB 2257) back from 2020 plus the Freelance Worker Protection Act (FWPA) that took effect earlier this year.
- Requires written contracts for certain professions, included in a list such as writers, photographers, and others for $250 or more during the prior 120 days.
- Payment must be made by the date in the contract or if no date, within 30 days of completion
- Employers must follow rules to avoid $1,00 penalty, damages twice the unpaid amount by the date and reasonable attorney’s fees and costs.
Illinois (IL) – Freelance Worker Protection Act (FWPA) from July 1, 2024
- Requires a written contract for freelance work (except construction workers) worth $500 or more, either in a single contract or aggregated over 120 days.
- Payment must be made within 30 days of completion.
- Freelancers are protected from retaliation when asserting their rights.
New York (NY) – Freelance Isn’t Free Act – Effective since May 15, 2017 as NYC law (expanded to the State in August 2024).
- Requires written contracts for freelance work (exception for sales representatives, lawyers, medical professionals and construction workers) worth $800 or more, either in one contract or across multiple within 120 days.
- Employers must pay freelancers within 30 days of the work being completed.
- Strong enforcement provisions with penalties for violations.
To avoid issues, at a minimum, you need to 1) have a written agreement in place and 2) comply with the due payment dates to avoid fines and penalties. It might be a good idea to reach out to an attorney and set up a template that meets your State requirements. For further details on this topic, reach out to our team.
