Recent legislative developments in New York have introduced significant changes to employment law, dramatically shaping the landscape for both freelance workers and traditional employees. These new laws aim to ensure greater fairness, transparency, and timely payment while providing robust protections against discrimination, harassment, and unlawful workplace practices. Employers operating in New York must stay informed and compliant to avoid potential legal consequences and contribute to a more equitable working environment.
The New York State Freelance Isn’t Free Act
The New York State Freelance Isn’t Free Act, which took effect on August 28, 2024, has introduced new mandatory requirements for businesses engaging freelance workers. One critical element of this law is the requirement that businesses must formalize any engagement with freelance workers in a written contract if the cost of a single project is $800 or more, or if multiple services provided by the freelance worker within a 120-day period total $800 or more. This requirement aims to ensure clarity and mutual understanding between businesses and freelancers, providing a documented agreement that outlines specific terms and expectations.
Moreover, the Act mandates that freelancers must be paid promptly in accordance with the agreed-upon terms in the contract. It also protects freelancers from discrimination when they exercise their rights under the act. Notably, a significant amendment to the Act before its implementation transferred its enforcement from the New York State Department of Labor to the New York General Business Law, overseen by the New York State Attorney General (NYSAG). This change empowers freelancers to file complaints directly with the NYSAG if they believe their rights under the Act have been violated. Subsequently, the NYSAG is responsible for investigating these complaints and can award relief, including civil and criminal penalties when warranted.
Freelancers also have the alternative option of pursuing claims in court, where prevailing workers can receive a range of remedies, including double damages, attorneys’ fees, costs, injunctive relief, and other suitable remedies. In cases involving retaliation claims, statutory damages equivalent to the contract value can be awarded. Additionally, if there is reasonable cause to believe a business is consistently violating the Act, the NYSAG has the authority to initiate a civil action on behalf of the state, seeking substantial civil penalties up to $25,000, alongside injunctive relief and other appropriate remedies.
New York City Workers’ Bill of Rights
Effective July 1, 2024, the New York City Workers’ Bill of Rights mandates that employers provide their employees with a multilingual “Know Your Rights at Work” notice, sourced from the city’s Department of Consumer and Worker Protection (DCWP). This notice serves the vital function of guiding employees to the DCWP’s Workers’ Bill of Rights webpage, thus enhancing awareness and transparency regarding workplace rights and responsibilities. Employers are also required to post copies of this notice in prominent locations within the workplace, online, and within any mobile applications used by the workforce. These notices must be available in the predominant languages spoken by at least 5% of the employees at any employer location, provided that the DCWP offers notices in those languages. Non-compliance with these posting requirements can result in civil penalties, underlining the importance of adhering to these new regulations.
The intention behind the Workers’ Bill of Rights is to empower employees with knowledge about their rights and responsibilities, thus fostering a more informed and equitable workplace environment. By ensuring that employees are continually aware of their rights, the Bill of Rights contributes significantly to a culture of transparency and fairness within New York City workplaces. This legislative measure aligns with the broader objective of promoting employee well-being and protecting worker rights on multiple fronts, enhancing the overall quality of the work environment for all involved.
Amendment to the New York City Human Rights Law (NYCHRL)
An important amendment to the New York City Human Rights Law (NYCHRL), which became effective on May 11, 2024, has further bolstered protections for employees. This amendment renders provisions in employment agreements that attempt to shorten the period for filing claims of unlawful discriminatory practices, harassment, or violence as unenforceable and void against public policy. This legislative change ensures that employees retain their statutory rights to file timely claims without encountering any unjust contractual limitations.
Under the NYCHRL, employees typically have one year to file an administrative complaint with the New York City Commission on Human Rights for claims of discrimination, harassment, or violence. Additionally, they have three years to file for cases of gender-based harassment or to commence a civil action in court. The amendment preserves the enforceability of other provisions within employment agreements, even if certain clauses are invalidated due to their incompatibility with public policy. This ensures that while a specific clause reducing the statutory period may be nullified, the remainder of the employment contract remains effective and legally binding.
This legislative change is critical as it protects employees from having their rights curtailed by enforceable employment agreements, granting them adequate time to seek justice for unlawful workplace practices. It reinforces the protections available to employees under the NYCHRL, ensuring they have sufficient time to navigate the legal process and file claims as necessary. By maintaining these statutory periods for filing claims, the amendment strengthens the overall framework of worker protections, offering employees greater security and recourse against discriminatory or harmful actions within the workplace.
Ensuring Compliance and Promoting Fairness
Recent legislative developments in New York have brought about sweeping changes to employment law, significantly transforming the work environment for both freelance workers and traditional employees. These reformative laws aim to promote greater fairness, enhance transparency, and ensure timely payment while safeguarding workers from discrimination, harassment, and unlawful workplace practices. As a result, freelancers and employees can expect stronger protections and more equitable conditions. For businesses operating in New York, staying abreast of and adhering to these new laws is crucial. Non-compliance could result in substantial legal repercussions. These changes reflect a shift towards a more just and inclusive work culture, where employee rights and dignities are prioritized. Therefore, employers need to be proactive in understanding and implementing these legal requirements to foster a positive and lawful workplace. By doing so, they contribute not only to the welfare of their workforce but also to a more balanced and fair labor market environment overall.
