Putting government on freelancers’ side

New York has always been a trendsetter for new ideas: We’ve got the country’s biggest bikeshare program, universal pre-K, a host of other innovations — and soon, there will be a new one to add to the list.

The New York City Council will vote Thursday to pass legislation that will ensure that independent workers of all kinds will no longer have to worry about getting paid. Under the Freelance Isn’t Free Act, millions of independent workers in New York City can now turn to local government for help if an employer tries to stiff them.

We’ll be the first city in the country to establish this groundbreaking but essential protection for independent workers — and given the rapidly growing size of this workforce, it’s all but certain we won’t be the last.

If you work a 9-to-5 job, you may never have had to think about wage theft: You get a regular paycheck, and if not, for whatever reason, the State of New York will go to bat for you.

But in the freelance world, late and non-payment is sadly prevalent. Worse, there’s no one to back you up if you have to chase down payments, sue or just cut your losses. Millions of New Yorkers perform independent work — as health care workers, theater technicians, graphic designers, writers, CPAs — and a recent study shows that 70% of them get stiffed at some point in their career.

The average loss when a company refuses to pay an individual is nearly $6,000, according to a study by the Freelancers Union I lead.

In addition to taking up prime working hours to chase unpaid invoices, and swallowing the cost of legal fees to take non-paying employers to court, where they can only typically collect a small portion of what’s owed, non-payment can put freelancers at risk of personal bankruptcy and debt.

I’ve heard countless stories of people being forced to get by using credit cards, borrowing money from friends and family, and relying on government assistance.

Fortunately, recognizing that so much of our economy is now driven by an independent, on-demand, flexible workforce, City Councilman Brad Lander of Brooklyn has led the way to create a sensible new policy to help protect and sustain workers in this new economy.

Under the law, a company that hires a freelance worker is required to draft a simple written contract that describes the work to be done, the rate and method of payment, and the date that payment is due.

If there’s a delay in payment or if the client refuses payment entirely, freelancers can take clients to court — where they will now face penalties, including double damages, attorney fees and civil fines. They will also have the option to file a complaint with the city’s new Office of Labor Standards, which will work with freelancers and clients to resolve disputes.

Of course, workers should be paid on time and in full — it’s what we expect anytime we pay for a good or service at a store. But because it doesn’t always work that way, this is a huge step forward for a growing workforce.

America’s workforce is rapidly changing, particularly in cities like New York, where the economy increasingly depends on freelance labor.

Fifty-five million Americans perform some kind of independent work. In the New York City metro area, there are nearly 4 million freelancers, representing 38% of the workforce — a figure that continues to grow as the world of work evolves. Earning an estimated $230 billion last year, these men and women are a huge economic resource for the city. They’re doing project-based work, putting together diverse income streams and pursuing careers — and they need basic protections to ensure fair treatment.

If you’ve followed the 2016 elections, you know it’s all about workers: their stagnant wages, a generation of lost jobs and the need for new opportunities and assurances that they’ll be able to get by and save for the future. Economic inequality is at record levels here in New York and across the country — which is why we need employment laws that reward skill and hard work and offer basic protections for labor that’s currently taken for granted.

We’re living in a time of radical transformation. Freelancers are making an invaluable contribution. It’s time we do the same for them.