Image Source: https://newyorkstatelaw.org/2022/08/24/what-the-freelance-isnt-free-act-means-for-independent-contractors/

What the Freelance Isn't Free Act Means for Independent Contractors New York State Law

troversy around an Freelance Isn't Free Act.

This is considered a threat by certain people to the expanding freelancers' industry, which has grown because of freelancers. They make life easy, yet they cause confusion as to who's an employee and contractor according to federal labor laws and can result in cases. Many critics believe that this uncertainty has led to unethical employers who make a profit of employees by classifying their employees in a wrong manner. Others argue that these platforms give people an opportunity to be more flexible with their schedules than traditional employment arrangements without losing benefits or compensation like health insurance coverage. Others fear this new legislation could erode the benefits.

Employers must make agreements with workers.

This law is not applicable to independent contractors or freelancers, but it applies to employees earning more than $800 per year. Employers can now sign contracts with employees who were prior to being exempt, such as ones who pay by the hour. Contractors receive pay by the hour or daily if they contract together with New York City. Before contractors can begin employment for an employer they must sign and return the contract with a copy. The parties involved must agree to it. Employers must keep all contracts until that contractor has completed the task. These same rules are applicable to all trades, which includes HVAC contractors. It is possible to file a claim with your state's Department of Labor, or the attorney general's office of your state if a client has a debt. A company that fails to adhere to the law may be subject to penalities, either private or civil. Lawyers for workers compensation may additionally have rights.

There are exemptions

Customers aren't employed by independent consultants who provide their services in accordance in a contract. The consultants are considered freelancers and have to cover the expenses of their own. They must pay tax for self-employment on

.