Freedom for Freelancers: Department of Consumer Affairs Releases Report Marking the First Year of the Freelance Isn't Free Act

May 15, 2018

• The majority of freelance workers who use the Navigation Program secured payment from their hiring parties.
  
  Findings show the Navigation Program is highly effective in securing payment for freelancers. Of the 259 complaints for payment violations DCA received since May 2017, 37 percent of freelancers were paid within 30 days, 54 percent within 60 days, and 61 percent within 90 days. Additionally, 90 percent of these freelancers received the full amount owed by their hiring party.
  
  DCA assists freelancers in exercising their rights through the Navigation Program in a number of ways including:
  • Fielding general inquiries about the law, so both freelancers and hiring parties are well-informed about their rights and obligations;
  • Conducting initial consultations with freelancers who believe their hiring party may have violated the law;
  • Attempting to resolve workers’ complaints against hiring parties by sending a notice of complaint to the hiring party and communicating the hiring party’s response to the freelancer;
  • Preparing freelancers to and guiding them through the process of pursuing their claims in civil court; and
  • Developing and distributing materials and training and education to help freelancers exercise their rights and hiring parties fulfill their obligations.

• The majority of complainants who secured payment did not need to pursue their claim in court.
  
  The report indicates that 21 percent of workers who filed a complaint with DCA received payment following the initial consultation with a navigator, 77 percent received payment after a navigator sent a notice of complaint to the hiring party, and 2 percent were resolved after the freelancer filed a suit in civil court. The law includes several provisions designed to make it easier for freelancers to initiate and win lawsuits alleging breach of contract for failure to pay for services. This includes a requirement mandating hiring parties to pay double damages and attorneys’ fees when a freelancer prevails in their suit for non-payment, making relatively small cases more viable for a freelancer to pursue. Because of these added protections – hiring parties are more likely to settle outside of the courtroom, saving freelancers’ time while increasing their ability to collect lost wages sooner.

• Complainants come from a wide range of industries and occupations, tend to be young, English-speaking, and highly educated.
  
  While 72 percent of freelancers who filed a complaint with DCA worked in the arts and entertainment industry, individual occupations varied drastically, with the most common occupations including photographers (11 percent), film and video editors (9 percent), and journalists (8 percent).
  
  While freelancers between the ages of 18-29 made up only 9 percent of the freelancer population in New York City, they represented 46 percent of all complaints received. Complainants also had higher levels of education (86 percent held a bachelor’s or higher compared to 49 percent of all freelancers in New York City), greater incomes ($47,500 median annual income compared to $30,000), and were far more likely to report English as their primary language (97 percent compared to 50 percent).