Freelance Isn't Free Act and Other US Freelancer Payment Laws (2026)

For years, US freelancers had one answer to a client who wouldn't pay: small claims court, and a long wait. That has started to change. New York City passed the Freelance Isn't Free Act in 2016, New York State followed in 2024, and Illinois, California and Los Angeles now have similar rules. They share a few simple ideas: put the deal in writing, pay on time, and pay more if you don't.

This guide explains what these laws require, who they cover, and how to use them when an invoice goes unpaid. It's general information, not legal advice.

What the laws have in common

Each law has its own details, but the core is the same:

1. A written contract above a dollar threshold, listing the services, the rate, and when payment is due.
2. Payment on time: by the date in the contract, or within 30 days of completing the work if no date was set.
3. No retaliation against a freelancer who asserts these rights.
4. Remedies, which in several places include double damages for unpaid amounts and attorney's fees.

New York State: Freelance Isn't Free Act

New York's statewide law (General Business Law Article 44-A) took effect on 28 August 2024.

• Who it covers: a "freelance worker" is a person, or a one-person organisation (incorporated or not), hired as an independent contractor for services worth $800 or more, alone or together with all contracts with the same client in the previous 120 days.
• Who's excluded: sales representatives, lawyers, licensed medical professionals and construction contractors. Government clients are also excluded.
• Written contract: required, covering scope of work, rate, payment method and due date.
• Payment: by the contract due date, or within 30 days of completing the work if none was set. A client can't make faster payment conditional on accepting less.
• Remedies: according to the New York Senate sponsor's summary, double damages for unpaid work, attorney's fees, and a $250 penalty for failing to provide a written contract.

Source: NY General Business Law § 1410 and following, on nysenate.gov.

New York City: Freelance Isn't Free Act

New York City's law has applied since 2017, with the same $800 threshold over 120 days and the same 30-day default. Freelancers can file a complaint with the city's Department of Consumer and Worker Protection or go to court. If you work for NYC-based clients, check both the city and state rules.

Illinois: Freelance Worker Protection Act

Illinois's law applies to contracts signed after 1 July 2024.

• Threshold: $500 or more, alone or across contracts with the same client over 120 days.
• Written contract: must include both parties' names and contact details, an itemisation of services, the rate and method of payment, the payment date and the dates of services.
• Payment: by the contract date or, if none is specified, within 30 days of completing the services.
• Enforcement: complaints go to the Illinois Department of Labor, within two years of the date payment was due. The department publishes contract templates.

Source: Illinois Department of Labor, Freelance Worker Protection Act FAQ.

California: Freelance Worker Protection Act

California's statewide law (Business and Professions Code section 18100 and following) applies from 1 January 2025. It covers freelancers providing professional services worth $250 or more, alone or across contracts with the same client over 120 days, and requires a written contract and payment by the agreed date or within 30 days of completion. Check the current text on leginfo.legislature.ca.gov for remedies and exclusions.

Los Angeles: Freelance Worker Protections Ordinance

The City of Los Angeles ordinance (LAMC Article 10, section 189.100 and following) applies to contracts from 1 July 2023 for work performed in the city.

• Threshold: $600 or more in a calendar year from the same hiring entity.
• Written contract: required above the threshold, with contact details, itemised services, value, rate and method of payment, and the payment date.
• Payment: by the contract date or, if there's no date or no written contract, within 30 calendar days after services are rendered.

Other places to check

Similar rules exist in other cities, including Seattle, Minneapolis and Columbus, Ohio, each with its own threshold and process. If your client is elsewhere, search your state and city for "freelance worker protection" before assuming there's nothing.

How to use these laws in practice

You rarely need to file a complaint. Knowing the law mostly changes how you set up the work and how firmly you can follow up.

Before the work starts

• Use a written contract every time you're over the threshold. It protects you whether or not a law applies.
• Include the services, the rate, how you'll be paid, and a specific due date or rule (for example, "within 14 days of invoice").
• Keep proof of completion: delivery emails, sign-off messages, final files.

When an invoice is late

1. Send a friendly reminder first. Most late invoices are oversights. See friendly payment reminder email.
2. Follow up at steady intervals with the invoice number, amount and due date. See overdue invoice email template.
3. If it's still unpaid and the law applies, say so calmly:

Hi Jordan, invoice INV-2031 for $3,200 was due on 14 March, 30 days after I delivered the final files. Under New York's Freelance Isn't Free Act, payment is due within 30 days of completion when no other date is agreed. Could you confirm when it will be paid? I'd much rather settle this directly.

1. If there's no response, consider a formal complaint with the relevant agency, or small claims court. See what to do when a client doesn't pay.

What these laws don't do

• They don't apply to every client. Thresholds, exclusions and geography matter.
• They don't make late fees automatic. A late fee generally still needs to be in your contract. See late payment fees by country.
• They don't collect the money for you. They give you leverage and remedies.

FAQ

What is the Freelance Isn't Free Act?

A New York law, first in New York City (2017) and then statewide (2024), requiring written contracts for freelance work of $800 or more and payment within 30 days of completion if no date is agreed, with remedies including double damages.

Does the Freelance Isn't Free Act apply outside New York?

No, but Illinois, California, Los Angeles and other cities have similar laws.

Do I need to be a resident of New York?

The laws focus on the hiring party and where the work is performed. Check the specific law's scope for your situation.

What if I don't have a written contract?

The 30-day default still applies under several of these laws, and not providing a contract can itself be a violation by the client.

Make the 30 days count

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