New York Gov. Kathy Hochul recently signed bills enacting the Freelance Isn't Free Act, extending the statute of limitations to file a lawsuit alleging unlawful discriminatory practices, and barring the inclusion of liquidated damages provisions in settlement agreements for claims of harassment, discrimination, or retaliation.
These are among the hundreds of bills passed during the busy 2023 New York legislative session. A bill barring noncompete agreements for all workers, regardless of their salary level or job function, was passed in June, but it has yet to be sent to the governor for signature.
Freelance Isn't Free Act
The governor signed into law the Freelance Isn't Free Act, which provides certain protections to freelance workers in the state. The law will take effect on May 20, 2024, which is 180 days after signing. The law creates a new Section 191 - d of the Labor Law and is modeled on existing New York City law.
The state law requires a business to provide any freelance worker with a written contract, if the freelance work is worth at least $800, inclusive of multiple projects over a 120 - day period. The law sets a 30 - day deadline for payment in full, unless another timeframe is agreed to by the parties.
The written contract, a physical or electronic copy of which must be furnished to the freelancer, must include the name and mailing address of both parties, an itemization of all services to be provided by the worker, the value of services to be provided, and the rate and method of compensation.
Under the law, the hiring party may not retaliate or take any action that is reasonably likely to deter a freelance worker from exercising or attempting to exercise any right under the law. Freelance workers may file a complaint with the State Department of Labor for violations of the law. Additionally, a freelance worker may file a civil action in any court of competent jurisdiction for damages. Actions for nonpayment of the contracted compensation or for retaliation are subject to a six - year statute of limitations.
Statute of Limitations Under Human Rights Law
The governor also signed a bill amending the New York Executive Law § 297 to extend the statute of limitations for filing complaints of discrimination with the State Division of Human Rights from one year to three years. This extension makes the statute of limitations for such filings consistent with the current three - year statute of limitations for sexual harassment complaints.
This law will take effect on Feb. 15, 2024, which is 90 days after signing. It will apply to all unlawful discriminatory practice claims arising on or after that date.
Meanwhile, another law the governor signed will ban certain types of clauses in settlement agreements for discrimination, retaliation, or harassment claims.
Richard Greenberg, Daniel Jacobs, Henry Shapiro, Christopher Valentino, and Kevin Murray are attorneys with Jackson Lewis in New York City and Long Island, N.Y. © 2023. All rights reserved. Reprinted with permission.
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