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Navigating Compliance: What the 'Freelance Isn't Free Act' means for you

January 5, 2024

By

Cassandra Aaron

Navigating Compliance: What the 'Freelance Isn't Free Act' means for you

January 5, 2024

By

Cassandra Aaron

I spoke with a couple of our clients recently to asl "do you have contracts in place with your freelancers?" The resounding response was "hot topic actually!"

There's a reason its a "hot topic"…

As the gig economy continues to grow, ensuring fair treatment and protection for freelancers has become increasingly important to our society and lawmakers. And rightly so…

It also means that as a business, there are real life rules to abide by (ugh but important). And if you don't abide, the law ain't on your side. Allow me to re-introduce to you the Freelance Isn't Free Act. I'm here to equip you with the knowledge and tools you to make sure you're in the clear (and of course, doing the right thing). But first, here are some Archie truths:

  1. We believe that our clients ~previously~ paid freelancers late, not because they wanted to but because they were not organized

  2. Our clients use Archie because they understand how important it is to have a good reputation amongst a labor force that drives revenue for their business

  3. We pride ourselves on striking the right balance between ease and friction to ensure compliance - its an art and we're pretty damn good at it

So, let's delve deeper into understanding the Freelance Isn't Free Act and why compliance is essential.

The Freelance Isn't Free Act: A Quick Recap

The Freelance Isn't Free Act, enacted to safeguard freelancers from non-payment and ensure additional rights and remedies, extends its protections across several states. If you're a business hiring freelancers, here are the key provisions you should be aware of:

  1. Written Contracts: For projects valued at $800 or more, a written contract is mandatory. This contract should detail the scope of work, rate of pay, and payment terms.

  2. Timely Payment: Freelancers should receive full payment within 30 days of completing their services, unless otherwise specified in the contract.

  3. Protection Against Retaliation: Businesses cannot retaliate against freelancers for asserting their rights under the act.

Why Every Business Should Care About Compliance

Compliance may seem like a daunting task, but it's a crucial aspect of ethical business practices. Here's why compliance with the Freelance Isn't Free Act matters:

  • Legal Consequences: Non-compliance can lead to hefty fines, legal fees, and damage to your business's reputation.

  • Building Trust: Freelancers are more likely to trust and collaborate with businesses that respect their rights and treat them fairly. This trust can lead to better work relationships and outcomes.

  • Strengthening Your Brand: A reputation for compliance and ethical practices can differentiate your business in a competitive market and attract top talent.

Practical Steps to Ensure Compliance

Now that we've covered the 'what' and 'why,' let's focus on the 'how.' Here are some practical steps to help your business stay compliant:

  1. Audit Your Contracts: Review your existing contracts with freelancers to ensure they meet the act's requirements and are up-to-date!

  2. Streamline Payment Processes: Implement efficient payment processes to ensure freelancers are paid promptly - that's where we come in (book a demo here)

  3. Educate Your Team: Educate your HR and procurement teams about the act's provisions and what they mean for your business.

Wrapping up…

The Freelance Isn't Free Act is a testament to the growing importance of protecting freelancers' rights across multiple states. As a SaaS company dedicated to supporting businesses across these states, we're here to help you navigate the complexities of this act and ensure compliance - ie. pay on time!!!!!

Compliance is not just about avoiding penalties; it's about building trust, fostering positive relationships, and contributing to a thriving freelance economy across the states listed here.

We're here to support you every step of the way.

I spoke with a couple of our clients recently to asl "do you have contracts in place with your freelancers?" The resounding response was "hot topic actually!"

There's a reason its a "hot topic"…

As the gig economy continues to grow, ensuring fair treatment and protection for freelancers has become increasingly important to our society and lawmakers. And rightly so…

It also means that as a business, there are real life rules to abide by (ugh but important). And if you don't abide, the law ain't on your side. Allow me to re-introduce to you the Freelance Isn't Free Act. I'm here to equip you with the knowledge and tools you to make sure you're in the clear (and of course, doing the right thing). But first, here are some Archie truths:

  1. We believe that our clients ~previously~ paid freelancers late, not because they wanted to but because they were not organized

  2. Our clients use Archie because they understand how important it is to have a good reputation amongst a labor force that drives revenue for their business

  3. We pride ourselves on striking the right balance between ease and friction to ensure compliance - its an art and we're pretty damn good at it

So, let's delve deeper into understanding the Freelance Isn't Free Act and why compliance is essential.

The Freelance Isn't Free Act: A Quick Recap

The Freelance Isn't Free Act, enacted to safeguard freelancers from non-payment and ensure additional rights and remedies, extends its protections across several states. If you're a business hiring freelancers, here are the key provisions you should be aware of:

  1. Written Contracts: For projects valued at $800 or more, a written contract is mandatory. This contract should detail the scope of work, rate of pay, and payment terms.

  2. Timely Payment: Freelancers should receive full payment within 30 days of completing their services, unless otherwise specified in the contract.

  3. Protection Against Retaliation: Businesses cannot retaliate against freelancers for asserting their rights under the act.

Why Every Business Should Care About Compliance

Compliance may seem like a daunting task, but it's a crucial aspect of ethical business practices. Here's why compliance with the Freelance Isn't Free Act matters:

  • Legal Consequences: Non-compliance can lead to hefty fines, legal fees, and damage to your business's reputation.

  • Building Trust: Freelancers are more likely to trust and collaborate with businesses that respect their rights and treat them fairly. This trust can lead to better work relationships and outcomes.

  • Strengthening Your Brand: A reputation for compliance and ethical practices can differentiate your business in a competitive market and attract top talent.

Practical Steps to Ensure Compliance

Now that we've covered the 'what' and 'why,' let's focus on the 'how.' Here are some practical steps to help your business stay compliant:

  1. Audit Your Contracts: Review your existing contracts with freelancers to ensure they meet the act's requirements and are up-to-date!

  2. Streamline Payment Processes: Implement efficient payment processes to ensure freelancers are paid promptly - that's where we come in (book a demo here)

  3. Educate Your Team: Educate your HR and procurement teams about the act's provisions and what they mean for your business.

Wrapping up…

The Freelance Isn't Free Act is a testament to the growing importance of protecting freelancers' rights across multiple states. As a SaaS company dedicated to supporting businesses across these states, we're here to help you navigate the complexities of this act and ensure compliance - ie. pay on time!!!!!

Compliance is not just about avoiding penalties; it's about building trust, fostering positive relationships, and contributing to a thriving freelance economy across the states listed here.

We're here to support you every step of the way.

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