
In New York, hard work is a common currency. New Yorkers, renowned for their dynamic spirit, are some of the hardest-working people in the world. But while their dreams are big, their paychecks should never fall short. Particularly for freelancers, who, like all workers, deserve to be paid timely and in full for their hard work.
Recognizing this pressing need, and in order to uphold the rights of freelancers, New York City introduced the Freelance Isn’t Free Act ("FIFA") in 2017.
In 2024, FIFA went statewide. A formidable asset in the toolkit of every New York freelancer, FIFA levels the playing field between freelancers and those who hire them.
But how can one harness FIFA's full potential? In this article, we will reveal the power of FIFA and guide you, step by step, to ensure that every cent of your hard-earned freelance income finds its way to you.
Overview of this Comprehensive Guide
In this article, we will break down everything you need to know about FIFA. We will also explain the step-by-step process to make and win a FIFA claim.
In the first section, we discuss what FIFA is and how it works.
In the second section, we discuss why FIFA is so great at helping you get paid for your outstanding invoices.
In the third section, we discuss how to make and win a FIFA claim.
Section 1: What is the Freelance Isn’t Free Act? How Does it Work?
1. What is the Freelance Isn’t Free Act (FIFA)?
FIFA is a New York law that allows freelancers and independent contractors in New York to receive double the unpaid value of their invoice if the hiring party refuses to pay, underpays, or pays late. The act provides strong protections for freelance workers, ensuring they receive timely and proper payment for their services.
Core Requirements of the Freelance Isn’t Free Act
Written Contract Required: If you’re hiring a freelancer for $800 or more worth of services, you are required by law to have a written contract. The contract must list both parties’ names and addresses, a breakdown of the job, the amount of pay, how the freelancer will be paid, and the due date for payment. There are no legal "handshake" jobs for less than $800 in New York anymore.
Timely Payment: Unless the contract says otherwise, you must be paid within 30 days of job completion. And no sneaky business – once terms are set, the hiring party cannot attempt to underpay; doing so is illegal.
No Retaliation: Don’t mess with a freelancer for standing up for their FIFA rights. No threats, no denying them work, none of that. All of this is illegal.
Right to Damages: Break the contract or the law? The freelancer should sue. Late on payment? The freelancer is entitled to double the amount, plus legal fees.
2. When did the Freelance Isn’t Free Act go into effect?
FIFA applies to all contracts entered into after May 2017 for work occuring in New York City. For work occuring elsewhere in New York State, FIFA applies to all contracts entered into after May 2024.
3. Why did New York pass the Freelance Isn’t Free Act?
The Freelancers Union, which is a non-profit advocacy organization for freelancers and independent contractors, is based in New York.
After an in-depth study, the Freelancers Union found that nearly 1 in 3 New Yorkers is earning freelance income. It also found that freelancers contribute $31.4 billion to the NYC economy annually!
However, the comprehensive study also found that 75% of freelancers faced difficulty receiving timely payment on at least one project. By some estimates, at least 150,000 New York City freelancers experience late payments or no payments each year.
Faced with these startling statistics and a history of payment abuses against freelancers, the City passed FIFA, which is now the most powerful legal payment protection for freelancers in the United States.
4. To whom does the Freelance Isn’t Free Act apply? (Or…Who qualifies as a “freelancer” under the Freelance Isn’t Free Act?)
FIFA defines who qualifies as a “freelance worker” very, very broadly.
You qualify as a freelancer entitled to special benefits under FIFA as long as you are hired to provide any sort of service in exchange for compensation within New York.
You qualify even if you have a company, so long as the company has no other employees.
Only salespeople, attorneys, medical professionals, and government contract work are excluded from protection under FIFA.
Here’s another way to think about it: If you receive a 1099 for your work, you qualify as a “freelancer” or independent contractor under FIFA.
Here is a list that we came up with of the different types of jobs to which FIFA could apply, assuming you did your work as a freelancer:
Work Category | Specific Job |
Construction | Drywallers, Painters, Carpenters, Electricians, Plumbers, Roofers |
Artists | Musicians, Singers, Photographers, Videographers, Painters, Drawers, Sculptors, Actors, Set Designers, Dancers, Hair Stylists, Makeup Artists, Fashion Designers, Choreographers, Graffiti Artists |
Technical | Editors, Writers, Software Developers / Coders / Programmers, Web Designers, System Administrators |
Laborers | Mechanics, Auto Detailers & Car Wash Professionals, Custodial Engineers / Janitors, Lawn Service Professionals, Movers |
Miscellaneous | Wedding Coordinators, Childcare & Babysitters, Dog Walkers / Dog Sitters, Consultants, Architects, CPAs / Financial Planners / Tax Advisors, Tour Guides, Personal Assistants, Chauffeurs / Drivers, Chefs, Caterers, Exotic Dancers, Translators |
This list is only the beginning. There may be many other types of jobs to which FIFA applies.
The only real requirement for FIFA to apply to you is that you performed some freelance or independent contracting work within New York City or state limits.
In sum, FIFA covers nearly all individuals hired as independent contractors for pay.
5. Does the Freelance Isn’t Free Act still apply if the freelancer’s work was not performed in New York?
It depends. At least some portion of the work must be performed in New York, but how much is an open question. True remote workers who performed 100% of their services physically outside of New York will not qualify. Other factors include whether you were hired in New York and the extent of the hiring party’s operations within New York. But if some of your work was remote and some of it was physically performed within New York, you likely qualify for FIFA protection.
6. What are the specific requirements of the Freelance Isn’t Free Act?
FIFA requires several things:
FIFA requires full payment to freelancers within 30 days of completing their work.
FIFA requires hiring parties to provide a written contract if the freelancer performs at least $800 of work over a four-month period. FIFA penalizes the hiring party—not the freelancer—if a written contract is not provided.
FIFA forbids hiring parties from offering freelancers less money in exchange for quicker payment.
FIFA outlaws retaliation against and blacklisting of freelancers who pursue claims for non-payment.
7. Is compliance with the Freelance Isn’t Free Act mandatory?
Yes. Everyone, including companies and individuals, who hire freelancers in New York must comply with FIFA.
Any contract attempting to waive a freelancer’s FIFA rights is void as a matter of law.
8. What information is required in the written contract between the freelancer and the hiring party?
At a minimum, the written contract must include all of the following:
The name and mailing address of both the hiring party and freelancer;
A list of all services the freelancer will provide;
The value of the freelancer’s services;
The rate and method of compensation for the freelancer’s services; and
The date on which the hiring party must pay the freelancer’s services.
9. Does the Freelance Isn’t Free Act apply even if I don’t have a written contract?
Yes. FIFA applies to your freelance work even if you have an oral contract or a “handshake” agreement. The only caveat is it might be harder to prove your claim if the hiring party denies they owe you anything.
10. What if the work I did was a long time ago? Is there a deadline to pursue my payment rights under FIFA?
Any freelance work post-May 15, 2017, is eligible for a FIFA claim. For non-payment or retaliation issues, freelancers have 6 years to file a complaint. But if it’s about missing a written contract, there’s a 2-year window. The sooner you file, the more likely you will recover money.
11. Do I have to actually submit an invoice for the Freelance Isn’t Free Act to apply to me?
No. Merely completing your work and asking for payment is sufficient to trigger your rights under FIFA.

Section 2: Why is the Freelance Isn’t Free Act so Great at Helping Freelancers Get Paid?
Remember: FIFA is mandatory and cannot be waived by anyone for any reason. This is just one reason FIFA is a powerful tool to help freelancers get paid. Even if the company that hires you wants to avoid FIFA, they can’t!
Here are some of the other reasons:
1. The penalties for failing to comply with the Freelance Isn’t Free Act are stiff.
FIFA Compliance Requirements for Hiring Parties:
Written Contract Violations: Legally, if a hiring party fails to provide a written contract, they owe the freelancer $250.
Non-Payment Violations: Legally, if a hiring party doesn’t pay the freelancer, they owe double the invoice amount. Example: An unpaid invoice of $10,000 results in a debt of $20,000.
Partial Payment Violations: Legally, if a hiring party partially pays the freelancer, they still owe double the unpaid invoice amount.
2. Do you have any proof that FIFA works to obtain payment?
After FIFA was enacted, the NYC Department of Consumer and Worker Protection released a preliminary report on its effectiveness. The report found:
61% of people making claims under FIFA recovered payment within 91 days.
The average claimant recovered $2,039.
72% of people making claims worked in the arts and entertainment industries.
Additionally, our law firm, Thompson & Skrabanek, PLLC, has collected hundreds of thousands of dollars for FIFA claimants over the past several years.
The DCPW released a separate report in November 2023 that found claimants had recovered a total of $2.91 million due to FIFA through the DCPW's "Navigation Program" between 2019 and 2023.
3. Are there any other penalties under the Freelance Isn’t Free Act?
Yes. When a freelancer successfully brings a FIFA claim, the hiring entity must cover the freelancer’s legal expenses and associated costs.
Therefore, if you prevail in a FIFA lawsuit, the company that engaged your services is bound to compensate you for any associated expenses, like court costs and attorney fees, that you’ve incurred.
4. Could there be negative consequences to the freelancer for filing a claim?
This is unlikely due to FIFA’s anti-retaliation and anti-blacklisting provisions.
Many freelancers are afraid of being blacklisted if they speak up about their unpaid invoices. However, FIFA specifically forbids hiring parties from punishing freelancers for asserting non-payment claims.
Specifically, FIFA makes it illegal to “threaten, intimidate, discipline, harass, deny a work opportunity to or discriminate” against a freelancer or independent contractor who complains or even attempts to complain about non-payment.
Retaliating or even threatening to retaliate against a freelancer is a separate violation of FIFA that entitles the freelancer to additional damages.

Section 3: How to File (and Win!) a Freelance Isn’t Free Act Claim in Small Claims Court
Thanks to FIFA, freelancers possess multiple avenues to recover outstanding payments. While none of these methods are mandatory, each serves as a powerful tool in ensuring you receive your payment. Indeed, when you employ these measures collectively, the likelihood of securing not just the unpaid invoice but potentially much more rises substantially.
Option 1 – Send a Demand Letter
A well-crafted demand letter can be a potent tool in spurring payment. Here are the hallmarks of an effective demand letter:
Professional Tone: Always keep it courteous and professional. Steer clear of personal jibes or derogatory remarks.
Clarity in Language: Ensure the letter is grammatically correct, with accurate punctuation and spelling. This adds credibility and showcases the effort and seriousness behind the demand.
Firmness: While maintaining politeness, be resolute in your intent to obtain payment.
Chronological Outline: Briefly outline the history of interactions between the parties for context.
Specifics: Detail the essential facts – the date of hire, nature of work delivered, the original payment due date, the agreed amount, and prior attempts made to secure payment.
Clear Demand: Clearly state the expected payment within a balanced timeframe. A very short deadline might be dismissed as unreasonable, while an overly lengthy one might lead to unwarranted delays.
Consequences: Conclude by laying out the potential repercussions should the payment not adhere to the letter’s stipulations.
Pro Tip 1: Avoid being emotional in your demand letter. Even though you may be hurting inside because you feel taken advantage of, use a strictly business tone in your letter. Avoiding emotional language increases the chance of getting the result you want.
Pro Tip 2: It is a good idea to send the demand letter by multiple methods, including email, regular mail, and certified mail. This will ensure the hiring party actually receives the letter and cannot later claim they did not get notice you were seeking payment. The Freelancers Union also provides a good template for a demand letter.
Pro Tip 3: Demand letters sent by attorneys typically have a much higher success rate because recipients tend to take them more seriously. Sadly, demands from non-attorneys are often ignored.
Option 2 – File a Lawsuit for Non-Payment
Pro Tip: Think seriously about consulting a legal expert before stepping into a lawsuit. Even in small claims court, the process can be intricate, and a proficient attorney can adeptly steer you through. Drawing from Abraham Lincoln’s wise words: “He who represents himself has a fool for a client.”
Precision is paramount in legal battles. A seasoned lawyer will often zone in on nuances that might elude the untrained eye. And here’s the silver lining: If you win a FIFA claim, you’re legally entitled to reclaim your attorney’s costs.
This tips the scales heavily in favor of collaborating with a legal professional. Plus, data supports that claimants, when represented by counsel, generally have enhanced success rates, garner larger settlements, and achieve results at a quicker pace.
Step 1 – Determine what type of court in which to sue.
First, consult the penalties analysis in “Section 2: Why is FIFA so Great at Helping Freelancers Paid?”
If you believe you are owed less than $10,000, you should file your lawsuit in NYC Small Claims Court.
If you believe you are owed between $10,000 and $25,000, including your recovery of double damages under FIFA, you must file your lawsuit in NYC Civil Court.
If you believe you are owed more than $25,000, you must file your lawsuit in New York “Supreme Court.” Our firm typically files most of our cases in New York County Supreme Court, but every situation is unique.
Step 2 – Determine what county in which to sue.
As the plaintiff, you get to choose the lawsuit’s “venue,” meaning in which county you file suit.
Venue can be in the county in which either you or the hiring party resides or the county in which you did the work. It’s entirely your choice.
Pro Tip: If you have the option between multiple venues, pick the venue that is most convenient for yourself and most inconvenient for the defendant.
The available counties are New York County (Manhattan), Kings County (Brooklyn), Queens County (Queens), Bronx County (The Bronx), and Richmond County (Staten Island).
Step 3 – Draft a Complaint.
Start with a form provided by a court clerk. This form includes only the minimum amount of information you need to support your claim.
It is wise to include additional information such as the history between the parties, when you did the work, how much you are owed, how many times you attempted to obtain payment, etc.
If you sent a demand letter before filing your lawsuit, you can potentially recycle some of information you used in these documents in your lawsuit. You might even attach these documents as exhibits to your Complaint.
Step 4 – File your Complaint.
File your Complaint with the County Clerk for the county in which you are filing your lawsuit. The current locations for the different county clerks are:
Bronx County – 851 Grand Concourse #124, Bronx, NY 10451; (718) 618-3300; https://iapps.courts.state.ny.us/ctclrk/home
New York County – 60 Centre Street Room 161, New York, NY 10007; (646) 386-5955; https://www.nycourts.gov/courts/1jd/supctmanh/county_clerk_operations.shtml
Kings County – 360 Adams Street, Room 189, Brooklyn, NY 11201; (347) 404-9772; https://www.nycourts.gov/courts/2jd/kingsclerk/
Queens County – Queens Supreme Court Building, 88-11 Sutphin Boulevard Jamaica, NY 11435; Executive Office Room 105; General Office Room 106; https://nycourts.gov/COURTS/11jd/queensclerk/index.shtml
Richmond County – 130 Stuyvesant Place, 2nd Floor, Staten Island, NY 10301 (718) 675-7700; https://www.richmondcountyclerk.com/information.htm
There will be a filing fee payable to the county for filing. This is considered a litigation “cost,” and you can ask the judge to reimburse you for the costs at the conclusion of the proceeding.
You can also register to file online. Many people find it easier to file online, but others prefer to file documents in person with the court clerk to ensure the document is properly filed.
Step 5 – Have the defendant served.
It’s critical that the defendant receive notice of the lawsuit. You may have to pay an additional fee for proper service, but this is also a litigation cost that can be recouped later.
The court clerk can sometimes help ensure the defendant is properly served. You may also have to hire a process server to accomplish this.
Step 6 – Obtain a hearing date and prepare for trial.
If you need help obtaining a trial date, call the court clerk and ask what the proper procedure is to obtain a date.
You may want to conduct “discovery” before the hearing. Discovery is when you request documents or information from the defendant, which they may be obligated by law to provide. Hopefully, you already have all the documents you need, since conducting discovery takes time and slows down the process before your hearing.
You may need to file a motion before your hearing. A motion is simply a request for the court to do something. The Small Claims Forms page is a good starting resource.
An example of a common motion is a “motion to adjourn” (also called a motion for continuance). You might make a motion to adjourn if you feel you need more time to properly prepare for the trial. Courts will often grant the initial request to adjourn.
Step 7 – Conduct the trial.
On the day of trial, be “Quadruple-P,” which means Polite, Professional, Prepared, and Persistent.
Have all your documents and proof in order and ready to present. Have copies ready for the defendant and the judge.
The most prepared litigant is the winner more often than not.
Prepare an outline of questions you may want to ask of the defendant. If you think the defendant is going to make a particular defense, be prepared to poke holes in that defense and show why it is not persuasive.
Here is an example of a potential defense and how to combat it: What if the defendant says they should not have to pay because your work was not good?
Make them admit they used or relied on the work. Or, make them admit they did not complain about the quality of the work after you sent your invoice. This will cast doubt on their credibility.
If you need witnesses, be sure they show up on your behalf. Coordinate with them beforehand so they know the date and time of the hearing.
Prepare an opening statement that summarizes your view of the lawsuit and what you will prove to the judge when you present your evidence.
Prepare a closing statement that will remind the judge of the most important evidence and request a specific sum of money. Ask for “judgment” against the defendant.
Step 7 ½ – Either before or after trial, see if you can settle the case.
It’s possible the defendant will ask you to settle the lawsuit before or even during trial. If this happens, you are free to settle the lawsuit on any terms that are acceptable to you.
Settlements typically include payment by the defendant in exchange for dismissing the lawsuit and your promise not to sue over the same issue again in the future. They might include other terms, such as confidentiality and non-disparagement (i.e., an agreement not to badmouth each other when the case is over).
Pro Tip 1: Know when to fold 'em. Money today is worth more than possible money in the future. Consider the phrase, “one in the hand is worth two in the bush.”
Even though you might be legally entitled to double your unpaid invoice under FIFA, if the defendant offers enough money to fully cover your unpaid invoice, all your court costs, and a little bit of interest, you would be wise to accept the deal.
Even if you’re nearly certain you will win, settling eliminates the uncertainty over whether you can successfully collect after trial.
Pro Tip 2: If you are close to settling, do not dismiss your lawsuit until you have received payment from the defendant. The existence of the lawsuit is your leverage to ensure the defendant will pay.
Step 8 – If you win, work with the sheriff or marshal to collect payment.
If you win, the court will issue a judgment and mail it to both you and the defendant. This is the critical piece of paper that carries the force of law and obligates the defendant to pay you the amount of the judgment.
The judgment may include interest, so the longer it remains unpaid, the more you are owed.
By now, the defendant would be wise to just pay the judgment. Try calling, emailing, or mailing them again giving them one last chance to pay within a short, but reasonable deadline.
If they still refuse to pay, you can seek an “execution.” An execution is where the sheriff or marshal literally goes to the defendant’s office or place of business and takes money or property in order to satisfy your judgment.
There are other legal steps and potential mechanisms to collecting a judgment, but they are outside the scope of this guide.
Finally, please be sure to check out additional resources at the Freelancers Hub.
We hope this guide has been helpful to you. When applied properly, we believe that FIFA is one of the most powerful collections tools in New York State. Please contact us if you have any questions or need assistance with recovering money owed to you in New York!

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