Int. No. 882
By Council Members Ossé, De La Rosa, Brooks-Powers, Hanif, Gutiérrez, Joseph, Farías, Avilés, Hudson, Cabán, Louis, Marte, Thomas-Henry and Feliz
A Local Law to amend the administrative code of the city of New York, in relation to establishing a payment fund for freelance workers
Be it enacted by the Council as follows:
Section 1. Subchapter 2 of chapter 8 of title 22 of the administrative code of the city of New York is amended by adding a new section 22-831 to read as follows:
§ 22-831 Freelance worker payment fund. a. Definitions. For purposes of this section, the following terms have the following meanings:
Eligible contract. The term “eligible contract” means a written contract that has a value of $800 or more whereby a hiring party is committed to provide compensation in return for services provided by a freelance worker.
Freelance worker. The term “freelance worker” has the same meaning as set forth in section 20-927.
Hiring party. The term “hiring party” has the same meaning as set forth in section 20-927.
b. In each covered contract with a contracted entity executed on or after the effective date of this section, the commissioner shall require that such contracted entity establish a payment fund for freelance workers. Such payment fund shall, unless prohibited by applicable law, provide to a freelance worker a payment equal to the amount due to be paid to the freelance worker under an eligible contract minus the fee established pursuant to subdivision c of this section, provided that both the freelance worker and the hiring party who are parties to the eligible contract agree in writing that:
1. The freelance worker has completed all services required under the eligible contract; and
2. The hiring party shall pay the full amount due under the eligible contract to the payment fund no later than the date the hiring party would have been required to make such payment to the freelance worker.
c. The contracted entity shall set a fee percentage so that the fees received by the fund are sufficient to cover the fund’s expenses and operations. The contracted entity shall periodically review and, as necessary, adjust such fee percentage. The fee shall equal the fee percentage of the full amount due under an eligible contract.
d. The contracting entity may maintain a list of hiring parties and freelance workers that previously engaged in fraudulent behavior relating to use of the payment fund and hiring parties that previously failed to make required payments to the payment fund. The payment fund is not required to make a payment if either party to the applicable eligible contracts is on such list.
§ 2. This local law takes effect immediately.
REC
LS #19740
10/9/25 10:30 AM