What You Need to Know About the Freelance Isn’t Free Act

May 15th, 2017

By Eric Frisch, 10x Management Writer

As representatives of the greatest freelance tech talent in the world, 10x Management is always staying up to date on the latest developments in the freelance community. Today, Monday May 15, New York City became the first city in the United States to enact a law that provides enhanced protections to freelance workers. The Freelance Isn’t Free Act gives freelancers the right to a written contract, timely and full payment, and protection from retaliation in the performance of their work.

We wanted to learn a little bit more about the act, so we headed to the Freelance Isn’t Free Launch Party today in downtown Manhattan. We heard from the founder and executive director of the Freelancers Union describe the act as a monumental victory for the 38% of all workers in NYC that freelance. With 55 million freelancers across the United States, there was also the hope expressed that this legislation would reach other cities soon.

Here’s what you need to know about the Freelance Isn’t Free Act in New York:

  • Mandatory Contracts: All contracts worth $800 or more during a 4 month period must be in writing outlining scope of work, rate, method of payment and payment due date. The burden of having a contract falls on the client, not the freelancer!
  • 30 Day Payment terms: Payment must be received within 30 days.
  • Payment Agreement Protections: Clients cannot require that freelancers accept less for quicker payments.
  • Court Action: If payment is not received in timely fashion and a judge rules in the freelancer’s favor, the client could have to pay the freelancer double damages, attorney fees, and civil penalties.

If you’re feeling overwhelmed by all of this, there’s an app for that. The Freelancers Union has built a great app to help solo entrepreneurs out with finding an attorney and other legal guidance.

If you like this article, you might enjoy reading The Best Remote Working Apps for Teams & Time Tracking