On October 27, the New York City Council, long known for pushing
the envelope when it comes to employment legislation, passed a first-of-its-kind bill, known as the
"Freelance Isn't Free" Act, that requires written
agreements between certain independent contractors and the entities
that engage them (the Act). The Act also bars wage theft and
retaliation against contractors, and imposes substantial penalties
on businesses that fail to comply with these and other requirements
surrounding the independent contractor relationship. In short, the
Act represents a major sea change with the use of independent
contractors.
Written Agreement Required
Perhaps most notably, the Act requires that virtually all
entities that engage a "freelance worker" for $800 or
more in services execute a written agreement with the contractor
before the work begins. "Freelance worker" means
"any natural person or any organization composed of no more
than one natural person, whether or not