During the final days of its most recent legislative session, the New York State Legislature passed a bill (S8369B) that would mandate contractual forms and terms for businesses that use “freelance workers.” Building on New York City’s Freelance Isn’t Free Act (discussed here and here), the bill, if it becomes law, will impose additional requirements on businesses engaging certain types of independent contractors. The bill will be delivered to New York Governor Kathy Hochul by the end of the calendar year. If Governor Hochul signs the bill into law, it will take effect 180 days thereafter and will apply to contracts entered on or after the effective date. Governor Hochul has not yet opined on whether she will sign the bill.
The bill would amend Article 6 of the Labor Law to include statutory provisions and requirements related to the payment of “Freelance Workers” engaged as independent contractors. Under the bill, “Freelance Worker” is broadly defined as an individual engaged as an “independent contractor by a hiring party to provide services.” The bill would cover only individuals providing services for more than $800 during the preceding 120 days. It also excludes certain occupations and trades, for example, “construction contractors,” medical professionals, commissioned salespersons, attorneys and governmental entities. The bill would amend the Labor Law to require written contracts for such “services,” but does not define what constitutes “service.” The bill would...
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