On November 16, 2016, NYC Mayor Bill de Blasio signed the “Freelance Isn’t Free Act” into law. The Act, which will go into effect on May 15, 2017, is the first in the country to place strict requirements on employers who hire independent contractors. The requirements include providing a written contract to any independent contractor who provides services valued at $800 or more, and also outline protections for contractors who file complaints against employers. The contract must contain several pieces of information including a list of services provided, the cost of these services, and when the agreed upon amount will be paid.
Companies that do not comply with the Act face a number of penalties, such as the payment of damages and possible civil actions by the City of New York. In preparation for the May effective date, NYC employers should review any existing contracts with independent contractors to ensure that they are in compliance with the new requirements.
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