The Freelance Isn’t Free Act: How $3,500 Turned Into a $20,000 Judgment

New York’s Freelance Isn’t Free Act (FIFA) is designed to protect independent contractors and freelancers from nonpayment. Many businesses don’t realize just how steep the penalties are until it’s too late. What starts as a small unpaid invoice can quickly snowball into tens of thousands of dollars in liability.

A Real Case From My Practice

One of my clients was a freelancer owed $3,500. The hiring company refused to pay. Under FIFA, we pursued the claim—and the court awarded a judgment of $20,000. Why? In addition to the unpaid invoice, the employer was hit with attorneys’ fees, statutory damages, and multiple violations of the Act. What looked like a “small” dispute became a major financial loss for the employer.

How the Freelance Isn’t Free Act Works

• Written Contract Required: For freelance work valued at $800 or more (in a 120-day period), the law requires a written agreement.
• 30-Day Payment Rule: Payment must be made within 30 days of completion unless otherwise agreed in writing.
• Anti-Retaliation Protections: Employers can’t punish freelancers for asserting their rights.
• Damages Multiply Quickly: Nonpayment can trigger statutory damages, double damages, attorneys’ fees, and civil penalties.

Why 1099 Employers Should Pay Attention

For employers using 1099 contractors, FIFA changes the math. Refusing to pay—or delaying payment—doesn’t just risk a small-claims suit. It can lead to a judgment many times larger than the original invoice. What feels like saving $3,500 can become owing $20,000 or more.

How Freelancers Can Use the Law

For freelancers, FIFA is a powerful enforcement tool. If you’re not paid on time, you may be entitled not only to the original invoice but also double damages, attorneys’ fees, and additional statutory penalties.

Don’t Ignore FIFA—Enforce or Defend It Properly

At JDE Law Firm, PLLC, I represent both freelancers seeking payment and businesses facing FIFA claims. If you’re a freelancer who hasn’t been paid, or a business that uses 1099 workers, you need to understand how this law works before a $3,500 dispute becomes a $20,000 judgment.

📞 NY: 718-966-0877 | NJ: 732-490-7120

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