Employers in New York, and across the country, should be aware that a number of recent workplace law legislative developments are now in effect.
New York State Freelance Isn’t Free Act Now in Effect
New York state’s Freelance Isn’t Free Act went into effect on August 28, 2024, and requires every New York state business that retains a freelance worker’s services to memorialize the terms of its relationship with the worker in a written contract if:
- The cost of a single project is equal to or exceeds $800.
- The freelance worker has provided multiple services to the business within a 120-day period that equal or exceed $800 in the aggregate.
The Act specifies the terms that must be set forth in the written contract between the business and the freelance worker. It also requires that freelance workers be paid timely under the terms of the contract and prohibits employers from discriminating against them for exercising their rights under the Act.
Notably, the New York State Legislature amended the Act, before it took effect, by moving it from the New York Labor Law, which the New York State Department of Labor enforces, to the New York General Business Law, which the New York state attorney general (NYSAG) enforces. Accordingly, freelance workers who believe a business has violated the Act may file a complaint with the NYSAG, who will investigate such complaints and, if appropriate, award relief, including civil and criminal penalties.
Alternatively, freelance workers may file a claim in any court of competent jurisdiction. A freelance worker who prevails on a claim under the Act may receive double damages, reasonable attorneys’ fees and costs, injunctive relief, and other appropriate remedies. A freelance worker who prevails in a retaliation claim can recover statutory damages equal to the value of the underlying contract.
Also, if there’s reasonable cause to believe a business has engaged in a pattern or practice of violations of the Act, the NYSAG may commence a civil action on behalf of the state and seek civil penalties of up to $25,000; injunctive relief; and “any other appropriate relief.”
New York City Workers’ Bill of Rights Now in Effect
New York City’s Workers’ Bill of Rights went into effect on July 1, 2024. Employers in New York City must now provide their employees with the multilingual “Know Your Rights at Work” notice that’s available from the city’s Department of Consumer and Worker Protection (DCWP), which refers employees to the DCWP’s Workers’ Bill of Rights webpage.
Employers must also post a copy of the notice in the workplace, as well as online and in mobile applications. Such postings must be in the primary languages of 5% of the employees at any of the employer’s locations in New York City if the DCWP makes a notice in those languages available. The DCWP can impose civil penalties for failure to comply with these requirements.
Agreements to Shorten NYCHRL Statutes of Limitation Not Enforceable
An amendment to the New York City Human Rights Law (NYCHRL) that became effective on May 11, 2024, now prohibits provisions in employment agreements that shorten the period in which claims and complaints of unlawful discriminatory practices, harassment, or violence may be filed or in which civil actions may be commenced under the law.
The NYCHRL provides that employees have one year to file an administrative complaint or claim with the New York City Commission on Human Rights for unlawful discriminatory practices, harassment, or violence. However, under the NYCHRL, employees have three years to file an administrative complaint or claim of gender-based harassment with the commission. The NYCHRL also provides that employees have three years to commence a civil action in court under the NYCHRL.
Section 8-109 (e-1) of the NYCHRL now provides that any provision of an agreement involving an employer, employment agency, or agent thereof regarding employment terms that claims to shorten the periods in which an employee may file an administrative complaint or claim with the New York City Commission on Human Rights is unenforceable and void as against public policy.
In addition, Section 8-502 (d-1) of the NYCHRL now provides that any provision of an agreement involving an employer, employment agency, or agent thereof regarding employment terms that claims to shorten the periods in which an employee may commence a civil action in court under the NYCHRL is unenforceable and void as against public policy.
The amendment to the NYCHRL also expressly provides that even though an agreement’s provision shortening the statute of limitations is no longer enforceable, the other provisions of the agreement remain enforceable.
Written by Charles H. Kaplan and Kinsey O’Brien, attorneys at Hodgson Russ LLP.