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Freelance Isn't Free Act in New York: written contracts and on-time pay for freelancers

Updated By The editorial teamNot reviewed by an attorney — based on the official sources below

In short

Since August 28, 2024, New York's Freelance Isn't Free Act (General Business Law Article 44-A) protects independent contractors across the state. If a client hires you for $800 or more — alone or added up over 120 days — it must give you a written contract stating the work, the pay and the payment date. It must pay you in full by that date, or within 30 days after you finish if no date was set, and it can't demand that you take less to get paid on time. If it pays late or short, you may sue for double damages plus attorney's fees. New York City has its own similar law.

Read on for the details, the exceptions and the sources.

In plain words

Freelance worker
A person, or a one-person business, hired as an independent contractor to provide services — not an employee.
Hiring party
The client that hires you — any person or business, but not a government.
Contracted compensation
The pay you and the client agreed on in the contract.
Statutory damages
A fixed amount the law awards when a rule is broken, whether or not you can prove a specific loss.

What is it?

The Freelance Isn't Free Act added Article 44-A (§§ 1410–1415) to New York's General Business Law. The Department of Labor says it took effect on August 28, 2024. It gives freelancers three core rights: a written contract (§ 1412), payment on time and in full (§ 1411), and protection from retaliation for using these rights (§ 1413).

New York City has had its own Freelance Isn't Free Act since before the state law, enforced by the city's Department of Consumer and Worker Protection (DCWP). The state law says it does not override or replace the city's law (§ 1415(5)).

Who qualifies?

You are a 'freelance worker' if you are a person — or an organization made up of no more than one person, incorporated or not, with or without a trade name — hired as an independent contractor to provide services worth $800 or more, either on one contract or when added to all your contracts with the same client in the previous 120 days (General Business Law § 1410(3)). The client can be any person or business, but not the federal government, New York State, a municipality or a foreign government (§ 1410(4)).

Exceptions

  • Sales representatives, as defined in Labor Law § 191-a, under the contract at issue.
  • Lawyers practicing law under the contract at issue.
  • Licensed medical professionals.
  • Construction contractors.
  • Government clients, which aren't 'hiring parties' under the Act.
  • The Act doesn't decide whether you are really an employee; if you are treated like an employee, you may have stronger wage rights (§ 1415(4)).

How much?

If the client doesn't pay on time or in full and you win in court, you are awarded your damages plus reasonable attorney's fees and costs, and you are also entitled to double damages, injunctive relief and other appropriate remedies (General Business Law § 1414(3)(a), (c)).

If the client fails to give you a written contract, you are awarded $250 in statutory damages (§ 1414(3)(b)(i)). If you win on a written-contract claim together with other violations of the Act, the law adds statutory damages equal to the value of the underlying contract (§ 1414(3)(b)(ii)). If the client retaliated against you, you are entitled to statutory damages equal to the value of the underlying contract for each violation (§ 1414(3)(d)).

How is it calculated?

  • The $800 threshold counts this contract plus all your other contracts for services with the same client during the preceding 120 days (§ 1410(3)).
  • 'Double damages' for late or short pay means you may receive twice the amount you were owed, in addition to attorney's fees and costs (§ 1414(3)(a), (c)).
  • Payment is due on the date in the contract, or — if no date or method was agreed — no later than 30 days after you complete the work (§ 1411(1)).
  • How a court applies the 'value of the underlying contract' damages to your case can depend on the facts; a lawyer or legal aid office can tell you what to ask for.

What documents do you need?

  • The written contract. It must include both sides' names and mailing addresses; an itemized list of the services, their value and the rate and method of pay; the payment date or how it will be set; and the date by which you must submit your list of services for the client's processing (§ 1412(2)).
  • If there's no written contract: proof that you asked for one before the work began — needed if your only claim is the missing contract (§ 1414(2)(e)).
  • Your invoices, delivery e-mails and proof of when you finished.
  • Records of any payments received and any request to accept less.
  • The Department of Labor's free model contract is a good starting point (§ 1412(4)).

How do you get it?

  1. Ask for a written contract up front

    Request one in writing before you start. The client must give you a copy, and both sides keep one (§ 1412(1)). You can propose the Department of Labor's model contract.

  2. Invoice on time

    Submit your list of services by the date in the contract so the client can't blame its processing deadlines.

  3. Send a reminder, then a demand

    If payment is late, send a polite reminder, then a demand letter citing General Business Law § 1411 and the payment date.

  4. Complain

    Statewide, you can file a complaint with the New York Attorney General, which can investigate and seek restitution and civil penalties (§ 1414(1)). In New York City, you can also file with DCWP.

  5. Sue if needed

    You can sue in any court with jurisdiction, including small claims for amounts within its limit. Within ten days after filing, serve a copy of your complaint on the Attorney General — missing this does not hurt your case (§ 1414(2)(d)).

What if they refuse?

A client can't threaten, harass, blacklist, deny you work, or otherwise penalize you for using these rights (§ 1413). A contract clause that waives your rights under the Act is void (§ 1415(1)), and failing to follow the Act doesn't make your contract void or give the client an excuse not to pay (§ 1415(3)). If a client doesn't keep the contract or can't produce it when the Attorney General asks, the law presumes your version of the terms is correct (§ 1412(3)). A court can also impose a civil penalty of up to $25,000 if it finds a pattern or practice of violations (§ 1414(5)).

Deadlines

  • Payment: by the contract date, or within 30 days after you finish if none was set (§ 1411(1)).
  • Lawsuit for late or short payment, or for retaliation: within six years (§ 1414(2)(c)).
  • Lawsuit only for the missing written contract: within two years (§ 1414(2)(b)).
  • Copy of your complaint to the Attorney General: within ten days after you file (§ 1414(2)(d)).
  • The client must keep the contract for at least six years (§ 1412(3)).

Figures that change

  • Contract value that triggers the law: $800 or more (alone or with the same client over 120 days) (as of 2026-10-30; N.Y. General Business Law)
  • Payment deadline when the contract sets none: 30 days after the work is completed (as of 2026-10-30; N.Y. General Business Law)
  • Statutory damages for no written contract: $250 (as of 2026-10-30; N.Y. General Business Law)
  • Late or short payment: Double damages plus attorney's fees and costs (as of 2026-10-30; N.Y. General Business Law)
  • Statewide law in effect since: August 28, 2024 (as of 2026-10-30; Freelance Isn't Free Act — New York State Department of Labor)

Frequently asked questions

I have an LLC with just me in it. Am I covered?

Yes, if the other conditions are met. The law covers an organization made up of no more than one natural person, whether or not it is incorporated or uses a trade name (General Business Law § 1410(3)).

The client says I'll get paid faster if I take 10% less. Is that allowed?

No. Once you've started the work, the client can't require you to accept less than the agreed pay as a condition of paying on time (General Business Law § 1411(2)).

I'm in New York City. Which law applies — the city's or the state's?

Both may protect you. The state law says it does not override the city's law (§ 1415(5)). New York City freelancers can file a complaint with the city's Department of Consumer and Worker Protection, and statewide complaints go to the Attorney General.

I never got a written contract. Do I lose my right to be paid?

No. The contract is still valid and enforceable (§ 1415(3)). The missing contract is a separate violation that can bring $250 in statutory damages, but if that is your only claim, you must show you asked for a written contract before the work began (§ 1414(2)(e), (3)(b)(i)).

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This page is general information based on the official sources listed, current as of the update date. It is not legal advice and does not replace a review of your own situation; if a case is already in court, a deadline is close, the amount is large, or there are criminal, immigration or family-law consequences, talk to a lawyer or legal aid.