This law is referred to as “Freelance Isn’t Free Act” (FIFA) and allows for freelancers to request a written contract for all work performed in New York City. This new law protects independent contractors who have a contract which will exceed $800 in a 120-day period.
This new law applies to the private sector only and applies only to individual freelancers. It excludes the following:
- Sales representatives
- Attorneys
- Medical professionals
Contracts must include:
- Name & mailing address
- Services to be provided
- Amount / rate and method of compensation
- Payment due date (default is 30 days from day work is completed)
Potential penalties:
- No contract provided: $250
- Payment not in accordance with contract: $500
- Retaliation: Value of the contract
- Reimbursement to freelancer for attorney’s fees
- Multiple violations can result in a fine of $25,000
If you have any questions, please don’t hesitate to call Kim at (631) 582-1600 x114.
Kimberly R. Roffi, CPA
Partner
Kim, who has been a member of the firm since 2001, has over 19 years of public accounting experience. Today, she is a partner of the firm and previously served as Director for the firm’s tax and business advisory practice and Director of Finance and Operations for the firm internally. Kim has written Practice Insights for Lexis Nexis’ tax research platform and has been published in Building Long Island magazine.
