New York ‘Freelance Isn’t Free’ Law Requires Payment in 30 Days

New York freelance workers gained the right to a written contract and pay within 30 days under legislation (SB 5026) signed into law by Gov. Kathy Hochul (D).

“This will apply to more than two million freelancers across the state and give them the peace of mind of knowing that they can perform their work when they’re hired for a job—and that they’ll have the ability to get paid on time,” said state Sen. Andrew Gounardes (D), who sponsored the law.

The law, which takes effect in 180 days, is the latest example of Hochul and Democratic lawmakers pushing state laws in a worker-friendly direction. A last-minute deal on the measure also suggests greater cooperation between the two sides ahead of the 2024 legislative session.

Hochul vetoed the “Freelance Isn’t Free Act” last December, on the same day she unveiled a much-criticized pick to lead the state’s highest court. She repeatedly clashed with lawmakers in the months ahead on a series of issues including the state budget.

State lawmakers struck a deal with the governor this year in which they agreed to pass legislation early next year to shift enforcement from the state Department of Labor to the Office of the Attorney General.

“The bill as drafted would impose costly operational and fiscal impacts on DOL at a time when the agency is already undertaking recent legislative initiatives with limited resources,” said Hochul in a Wednesday signing statement.

Individual freelancers will also have the right to bring legal action under the law.

Other Pro-Labor Laws

Hochul approved measures earlier this year expanding labor protections for interns and tech workers who moonlight as inventors.

Legislation (SB 3100A) still awaiting action by her this year would also curb the use of non-compete agreements by employers.

Illinois earlier this year became the first state to approve a version of the Freelancer Isn’t Free Act, which was modeled on a 2017 measure approved in New York City.

Expanding those protections statewide will be a welcome development upstate, where elected officials hope to make the region more attractive for workers, said Assemblyman Harry Bronson (D) of Rochester, who sponsored the bill in his chamber.

“These workers deserve the respect and the dignity for the services they’re providing,” said Bronson. “They deserve a mechanism to get paid for those services.”

The new statewide law covers who provide at least $800 worth of work within 120-day periods. Exceptions include people working in the medical and construction fields, according to the bill language.