New York Freelance Isn't Free Act: What Creator Contracts Must Include

What to take away

Who counts as a freelance worker

The city law defines a freelance worker as an individual hired or retained as an independent contractor to provide services for pay. It can cover someone who is incorporated or trades under a business name. A business with more than one person does not qualify under the city law. The state law uses a similar idea: a natural person, or an organization of no more than one person, hired as an independent contractor for services worth $800 or more.

A solo creator who invoices brands for edits, posts, design, photography or podcast production is the typical case. A small studio with several employees is not.

Both laws list exclusions, including sales representatives, attorneys providing legal services, licensed medical professionals, people hired as employees and people hired by governments. The state law also excludes construction work. Neither law decides whether a worker is really an employee.

Hiring parties are any person or organization that retains a freelancer for pay, other than governments. Brands, agencies, platforms, production companies and other creators can all be hiring parties.

The $800 and 120-day rule

A written contract is required when the agreement is worth $800 or more. The city rules add that multiple contracts between the same freelancer and hiring party over a period of 120 days that add up to $800 or more must also be in writing. The state law applies the same threshold across contracts with the same hiring party within a 120-day window.

For creators who work on a series of small deliverables, this matters. Ten $100 posts for the same brand over three months are covered even though no single one reaches $800. The better approach is to sign one master agreement with a schedule of deliverables.

Timing of the law matters too. The city law covers contracts made on or after May 15, 2017. The state law applies to contracts entered into on or after its effective date, which the New York State Department of Labor gives as August 28, 2024.

What the written contract must include

The city's guidance lists six items for every written contract:

Both sides must keep a copy. The statewide law uses the same core terms and adds a deadline for the freelancer to submit a list of completed services. It also lets the Commissioner of Labor require additional terms, and it requires hiring parties to keep contracts for at least six years. If the hiring party cannot produce the contract when asked, the worker's version of the terms is presumed to be agreed.

Turning the list into creator contract clauses

A creator agreement for New York work should address:

The New York State Department of Labor publishes a model freelance worker agreement, and the New York City Department of Consumer and Worker Protection offers a model contract with the required terms and optional ones. Using an official model is an easy way to cover the required fields.

Payment deadlines and what hiring parties cannot do

Payment must be made on or before the date in the contract. If the contract does not set a date or a way to determine one, the hiring party must pay no later than 30 days after the freelancer completes the services under the contract. After work has begun, the hiring party cannot require the freelancer to accept less than the contracted amount in order to be paid on time.

The city law does not set minimum rates. It requires timely payment of whatever amount the parties agreed. It also invalidates contract terms that waive the freelancer's rights under the Act, such as the right to join a lawsuit, and terms that limit the freelancer's right to discuss the contract or file a complaint.

Retaliation is prohibited. The city guidance includes threats, intimidation, harassment, blacklisting and other actions likely to deter a worker from asserting rights, such as denying future work. The state law likewise bars hiring parties from threatening, disciplining, harassing, denying work to or discriminating against a freelancer for exercising rights under the section.

The Act can apply even without a written contract. A missing or incomplete contract does not stop a worker from bringing a complaint.

Remedies and where to complain

Under the city law, freelancers may complain to the city's Office of Labor Policy and Standards or sue in court. Complaints to the city must be filed within two years of the violation. The hiring party has 20 days to respond. If it does not respond, the freelancer gets a rebuttable presumption in court that the violation occurred. Court claims for a missing written contract have a two-year limit; claims for nonpayment, underpayment or retaliation have a six-year limit.

The city's damages table works as follows:

Attorneys' fees and costs can also be awarded. If a hiring party repeatedly violates the law, the city can bring a case, with additional penalties of up to $25,000.

The statewide law uses the same limitation periods and a similar set of remedies, and it adds enforcement by the Department of Labor and the Attorney General. The Attorney General may sue where there is reasonable cause to believe a hiring party has engaged in a pattern or practice of violations, and a court may impose a civil penalty of up to $25,000. The state law does not override the city law.

Practical steps for creators

For the bigger picture of how creators earn, see the overview of the creator economy and the creator business checklist.

Common questions

Official sources