* § 1411. Contracted compensation payments. 1. Except as otherwise provided by law, the contracted compensation shall be paid to a freelance worker either:

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Terms Used In N.Y. General Business Law 1411

  • Contract: A legal written agreement that becomes binding when signed.
  • Freelance worker: means any natural person or organization composed of no more than one natural person, whether or not incorporated or employing a trade name, that is hired or retained as an independent contractor by a hiring party to provide services in exchange for an amount equal to or greater than eight hundred dollars, either by itself or when aggregated with all contracts for services between the same hiring party and freelance worker during the immediately preceding one hundred twenty days, but does not include:

    (a) any person who, pursuant to the contract at issue, is a sales representative as defined in § 191-a of the labor law;

    (b) any person engaged in the practice of law pursuant to the contract at issue and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth or the District of Columbia and who is not under any order of court suspending, enjoining, restraining, disbarring or otherwise restricting such person in the practices of law;

    (c) any person who is a licensed medical professional; or

    (d) any person who is a construction contractor. See N.Y. General Business Law 1410
  • Hiring party: means any person who retains a freelance worker to provide any service, other than:

    (a) the United States government;

    (b) the state of New York, including any office, department, agency, authority or other body of the state including the legislature and the judiciary;

    (c) a municipality, including any office, department, agency or other body of a municipality; or

    (d) any foreign government. See N.Y. General Business Law 1410

(a) on or before the date such compensation is due under the terms of the contract; or

(b) if the contract does not specify when the hiring party must pay the contracted compensation or the mechanism by which such date will be determined, no later than thirty days after the completion of the freelance worker's services under the contract.

2. Once a freelance worker has commenced performance of the services under the contract, the hiring party shall not require as a condition of timely payment that the freelance worker accept less compensation than the amount of the contracted compensation.

* NB Effective August 28, 2024