What the Freelance Isn’t Free Act Means for Independent Contractors – New York State Law

In addition, agreements on ning are not subject to the law. Furthermore, the law does exclude employees and associates of an entity that pays their income taxes. The tax does not apply to sole proprietorships and other unincorporated companies that are subject to the single-owner tax.
The Freelance Act has its flaws.

The law does not define what qualifies an individual as an “independent contractor.’ Instead, it offers some factors courts may consider when deciding the distinction between an employee or an independent contractor. In the end, the statute leaves open the possibility of the interpretation of courts, which can lead to costly litigation if there’s a confusion over whether individuals should be classified as either an employee or an independent contractor.

The law demands that businesses keep track of their independent contractors’ work hours. This may result in being less flexible in the way they do business, since many freelancers prefer working remotely. What’s the real problem with unpaid invoices is the fact that a lot of small enterprises don’t pay their invoices on dates, and they don’t have enough resources available for freelancers in order to be paid. The law doesn’t address this problem directly. It shifts the liability away from businesses that fail to pay their bills to organizations that have to incur additional costs to be able to adhere to the new law. Enforcement is the most difficult issue that this law has. In the absence of sufficient resources and personnel, government agencies such as The IRS or FTC cannot enforce every transactions between independent contractors and employers.

In a nutshell, the Freelance Isn’t Free Act is an essential step in the right direction in improving the conditions of labor for freelancers. Even though it’s not perfect the law offers the freelancers with protection from abusive actions that employers are known to use. Moreover, this law is one of many steps state and city governments can adopt to enhance working conditions for freelancers and employees who are not covered by the traditional employment la


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