Way to go NY! The Freelance Isn't Free Act

[Scott Schroeder]

https://www.marketplace.org/2017/05/17/economy/ny-freelancers-have-new-law-their-side

 

Hopefully this spreads to other areas.

[Ernest Burden III]

It's hard to know how effective this will be. The term for a client you need to start dropping 'there's a law' on is "former client". The abuses of payment times in NYC have at times been epic. I also have clients who wire me my pay the same day they get my invoice. (I like those clients). What would be interesting to see is if this new law forces accounts-payable departments at ad and creative agencies to be more timely without individual artists needing to raise a stink and risk their careers. I doubt architectural offices will be moved by mere laws, they ignore so many what's another one on the pile?

 

Much of the work available in NY is by word of mouth, so annoying one client can lose not just that one, but the others they would otherwise suggest you to.

 

Let's hope, and you have to realize just how bad it is for people that the city got it together to pass an actual targeted law.

[Scott Schroeder]

It could also make the freelance pool much more pro since this law requires the terms of the contract to be clearly stated if you wish to enforce the law on your side. No more amateurs working on verbal agreements.

 

Or it could push all freelance work outside of NY limits and therefore outside the extent of the law? Or if the person hiring the freelancer is in NY, then no matter where the freelancer is then they must follow the law? I'm not sure of the specifics on that one.

[Ernest Burden III]

Or it could push all freelance work outside of NY limits and therefore outside the extent of the law? Or if the person hiring the freelancer is in NY, then no matter where the freelancer is then they must follow the law? I'm not sure of the specifics on that one.

 

I wonder about that, too. I live and usually work in the city just above New York, Yonkers. But I apply sales tax with NY City rates, as that is where the work is delivered. I'm not sure how this law applies to my situation. Also, I work as a company (corporation) so I'm probably not a 'freelancer' under the law. It's probably B2B and not covered.

 

I sure could have used this law when I was 20 and starting my life as a man-with-pencil in New York. Playing 'which comes first--payment or eviction' is no fun.

[Francisco Penaloza]

I think is a start, and a good one, hopefully more states follow.

It is just ridiculous how much abuse there is with freelancing work, some companies have their whole work force base on freelancers so they don't have to pay insurance, fix salaries and others.

 

Great initiative. I can't believe that nothing similar exist here in California where so many freelancers or temporary worker are just run over every single day.

[SkylineArch]

I'm surprised this isn't a federal law, since in the end it effects your Federal taxes and how much you pay and get to write off as a loss.

[innerdream]

Bwahahahahahaha! Yeah that'll stop those Architects! NOT. Sorry, I have been in this business 40 years and have spent 20 of them chasing money from Architects.

 

Okay sorry I had to get that out. It's a start at least.

[Ernest Burden III]

I'm surprised this isn't a federal law, since in the end it effects your Federal taxes and how much you pay and get to write off as a loss.

 

Generally, you have to keep your books/file in accrual to be able to write off a bad debt. Most freelancers will be on cash basis (you only book income when actually paid).