Independent Contractor Agreements in New York

The Freelance Isn't Free Act requires a written contract

The Freelance Isn't Free Act (General Business Law Article 44-A) took effect statewide on August 28, 2024, after years of applying only in New York City. It requires a written contract whenever a hiring party engages a freelance worker for services worth $800 or more, either in one job or across multiple jobs with the same person over a 120-day period. The hiring party has to give the freelancer a copy and keep one for at least six years.

Payment timing and anti-retaliation

The Act also sets payment rules. The freelancer must be paid by the date stated in the contract, or if the contract gives no date, within 30 days of finishing the work. Once work has begun, the hiring party cannot demand a discount as a condition of getting paid on time. The law prohibits retaliation against a freelancer for asserting these rights, and it lets the worker file a complaint with the state Attorney General.

Why the written contract protects you

If a dispute goes to the Attorney General and the hiring party cannot produce the required contract, the law presumes the terms the freelancer describes are the agreed terms. In practice that means the written agreement is your record of what was actually agreed. Getting it right at the start is cheaper than arguing about it later.

Classification still uses the control test

Separately from the written-contract rule, New York decides whether someone is truly a contractor using the common-law test, which looks mainly at how much control the hiring party has over the work. A contractor sets their own hours, uses their own methods, and typically serves more than one client. A contract that says "independent contractor" does not override how the relationship actually works.

Frequently Asked Questions

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