The Freelance Employee Safety Act, an iteration of “Freelance Isn’t Free”, went into impact on July 1st, 2024. This laws offers protections for impartial contractors who create services or products in Illinois or who work for a hiring entity positioned in Illinois.
This regulation will safeguard freelance employees’ rights and deal with the prevalent concern of non-payment, reflecting a rising recognition of the significance of defending this very important workforce sector. Freelancing represents a quickly increasing and very important section of the economic system. In 2022, 60 million People freelanced, constituting 39% of the workforce and contributing $1.35 trillion to the nationwide economic system.
Nevertheless, most freelancers lack fundamental labor protections, significantly well timed cost. Based on research performed by Freelancers Union, 71% of freelancers skilled late or non-payment, with 59% dwelling paycheck to paycheck. Moreover, the bulk function with out written contracts, as solely 25% constantly have them.
The Freelance Employee Safety Act offers fundamental protections when the worth of the freelance work is the same as or better than $500 in a 120-day interval, together with:
- A written contract outlining the services and products to be offered, the dates by which companies are to be carried out, and the speed and methodology of compensation (pattern out there on-line, and free Union contract templates out there)
- 30-day cost phrases, except in any other case specified within the contract.
- Safety towards coercion for sooner cost.
- Anti-retaliation measures towards freelancers pursuing cost.
- Double damages for non-payment, masking prices and lawyer’s charges.
“The Freelance Employee Safety Act establishes a framework of comprehensible and clear expectations for impartial employees in Illinois, to raised defend their work, and compensation,” mentioned Illinois Division of Labor Director Jane Flanagan.
The regulation solely applies to freelance contracts taking impact after July 1, 2024. It doesn’t apply to people performing development companies, nor does it apply to staff of an employer. Staff owed again wages from their employer might file a wage declare with the Division of Labor right here.
“Freelance employees, like all employees, need to have fundamental protections like well timed pay and the best to a written contract,” mentioned State Rep. Will Guzzardi (D-Chicago). “Many freelancers say they stay examine to examine; these protections guarantee there are clear expectations for the employees and hiring entities.”
Ceaselessly requested questions and a pattern freelance employee contract (which is out there in a number of commonly-spoken languages) could be discovered on the Division’s web site: labor.illinois.gov/freelance.
In 2017, New York Metropolis pioneered the ‘Freelance Is not Free Act,’ permitting freelancers to recuperate unpaid wages. Since then, freelancers in New York have reclaimed over $2.5 million in unpaid invoices, but this quantity represents solely a fraction of what’s owed. We’re wanting ahead to seeing related success with the Freelance Employee Safety Act in Illinois, and can proceed to work to increase these protections nationwide.