How Does Freelance Isn't Free (FIFA) Work for New York City Freelancers?

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FIFA. Some of you may be thinking of the international soccer/football association. However, in the legal world in New York City, FIFA stands for Freelance Isn’t Free Act.

If you’re a freelance worker who wants their rights protected when you get ghosted for payment, then keep reading.

What is Freelance Isn’t Free (FIFA) and what does it do?

The Freelance Act (Local Law 140) was passed in 2016 by New York City council and went into effect in May 2017. This law protects the labor rights of freelance workers to the right of a written contract, timely and full payment, and protection from retaliation.

Under this Act, any contract with a freelance worker that exceeds $800 must be in writing. The $800 compensation threshold may be reached by a single contract or by multiple contracts together.

Under the Act, a freelance worker is defined as any natural person or any organization composed of no more than one natural person, that is hired or retained as an independent contractor to provide paid services.

How does the FIFA process work?

New York City’s Office of Labor Police and Standards (OPLS), Consumer Affairs Department, administers a complaint procedure for the Freelance Act.

Step 1: A freelancer files an online complaint to OPLS.

Step 2: The commissioner will notify the hiring party, who will have 20 days to respond with either (i) proof that the freelancer has been paid in full; or (ii) the reasons for non-payment.

Step 3: Commissioner then advises the freelancer of the hiring party’s response and whether the freelancer can bring an action.

Then, the commissioner will establish a navigation program that provides a freelancer with resources to pursue a civil action.

It is important to note that a freelancer has two years after the violation to file an administrative complaint. A freelancer does not need to go through the OPLS process before filing the suit.

Freelance Act Case

When has FIFA been used? In 2021, the City of New York sued L’Officiel, a fashion and beauty company on behalf of 41 freelancers. The City of New York claimed that the company violated FIFA when they failed to pay.

The City of New York and L’Officiel settled for $275,000—double the amount owed to the 41 freelancers! Additionally, the company must pay double damages to any other freelancer who comes forwards showing that they were not fully paid for their service(s).

The Freelance Act is still new—it came into effect about six years ago—and cases are picking up. But there’s no doubt about the significance this Act will have on the livelihoods of freelancers who can now more easily sue for the money that is rightfully theirs.

Have questions about FIFA? We help freelancers in New York City with FIFA claims and would be happy to chat through your options.