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Freelancing in New York just got a lot safer



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Freelancing in New York just got a lot safer

There's some big changes going on in the world of freelancing in NY, USA right now that can effect both freelancer and the people that hire freelancers. A new law was passed by the city council of New York in October that officially goes live in May 2017.

The FIFTA Act is a law that says that written contracts will be needed to be drawn up and signed by both parties for freelance projects that sell for at least $1200 or more over a 6 month period.

Freelancing in New York just got a lot safer
Image: NYC Takes Steps to Protect Gig Economy Workers.

And the FIFTA act will enable freelancers to open and file a complaint with the DLS (Department for Labor Standards) against any clients that don't pay up or are late paying and can even impose fines and penalties for those who are found guilty of not making any payment for work that has been carried out as per the contracts terms.

This new FIFTA law is being seen as a historic landmark victor and a testament to what happens when people come together and support a common cause for a very good reason. It can be seriously distressing when you're a freelancer who has done a huge amount of work and spent a lot of time on a client only to not get paid what's rightfully yours.

It's said that 38% of people working in New York are freelancers and it's high time new laws were introduced to protect them from non paying clients and it's something they hope to see passed and taken up in other states in the US also.

Freelance means = no strings attached. Which is good for the freelancer or whoever needs a freelance service. But like any industry, there are always those don't pay for the work that's been done for them for whatever reason.

This new law will ensure that those freelancers who done the work according to the contract will get paid for it, one way or another, through the Department for Labor Standards agency.

So if you own and are running a small business in NYC and you make use of freelancers to make your business tick over, you should think about preparing a contract with your attorney to go over any current contracts you have and learn what the practices are regarding hiring freelancers for your business.

Likewise freelancers, you should think about making your clients sign a contract for very large orders of $1200 or more. Even for smaller sized clients and budgets as a fail safe to make sure you get paid for your time and work.

What do you think about this new FIFTA act?

Do you think it will help or hinder a freelancer who sells freelance services (such as SEO services) for more than $1200?

What about if the work was done, but isn't up to scratch or quite how described?

How do you think a scenario like that would play out?

I'm guessing the Department for Labor Standards would have to review the work and then make a decision on it?

Kind of like how PayPal does now if someone opens a significantly not as described dispute.

You as a freelancer would have to prove you've done the work. But what if they decide it's not up to scratch and worth what the client was supposed to pay for it?

I guess that's something we'll learn about as time goes on and cases come to light.

Comments

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Everett
This is a really great move for New York, however it will most likely set back freelancers because writing contracts can be quite time consuming. I like that they are imposing this new law, but it kind of is a bit too intrusive in the freelancing world. What if you have multiple clients that pay more than $1200, that means you'll have to write all of those contracts.. my goodness!

I would probably set up a freelance portal website, and have the client electronically sign a contract on there, after the order is submitted. If there isn't an order, then I'll probably provide an option just for the contract signing to be compliant with the new law. Hopefully there isn't too many more things in the future like this for freelancers. Hopefully it doesn't get to a point where freelancing is too much of a pain, that'll be quite depressing.



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Lynne
Oh this is awesome move and it will definitely benefit freelancers and make it so much safer. It is awful when someone doesn't get paid for their had work and that is why I have found online marketplaces for SEO services, like SeoCleks, to be the way to go. Not just for me selling services but also for me buying services. I know that if I don't get what was promised to me I can as a last resort take it up with support.

This is a big move for New York and hopefully other places will follow soon. It just takes one person to lead the way and others follow.



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Everett
Well, I do not know because of the contracts. What exactly does this mean for freelancers whom hire New Yorkers? Would I need to create a contract because I am hiring a freelancer in New York? Or do they need to create the contract? This is weird.

When researching the law, I really didn't find a lot of information regarding it, so hopefully as the deadline gets closer more information will be available. I want to actually read the entire bill!



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Lynne
That's a very interesting point Everett, I wonder how on earth that will work?



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Barida
I'm happy to hear about this law that kind of protects freelancers in New York. I mean it has been a long time coming that freelancers have been left to suffer so many ills in the course of delivering their work. So, this is a welcome development for those staying in New York.



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overcast
It's good to see american economy is now freelancer friendly. And this gig economy continues to be beneficial to all the people around the world. America has changed the world. That being said such laws will also affect the insurance world. Here you can expect to get health insurance. Most of the healthcare is ignored for the freelancers. And that's something is definitely needs to be changed. I like this change it will help many around the world.



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Corzhens
Does this law also apply to freelancing in the online world? What I understand after reading your note on the law is that freelancing is someone who has no permanent job. If that applies to us then we should be prepared because a New Yorker who has a site that will hire freelancers for providing content on a long term basis may be needing a contract that will exceed the minimum amount of $1200.



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