E or independent contractor. In the end, this act allows room for interpretation and could lead to costly lawsuits when there’s a disagreement about the proper way to define who ought to be considered an employee independent contractor.
The companies must track hours worked by independent contractors under the bill. This may result in reduced flexibility for how freelancers do business, since the majority of freelancers are able to work remotely. The real issue with unpaid invoices is that far too many small enterprises don’t pay their invoices on time, and there aren’t enough resources for freelancers that allow them to pay their bills. The law doesn’t address this problem directly. It shifts liability from businesses that fail to pay their bills to organizations that must incur extra costs to be able to adhere to the laws that have been changed. One of the biggest challenges with the new law is the enforcement. Government agencies like the IRS as well as the FTC have limited capacity and personnel, which means they aren’t able to enforce every business transactions between employers and independent contractors.
In short, the Freelance Isn’t Free Act is a move in the right direction in improving the conditions for freelancers. While it’s far from perfect however, it will protect freelancers against exploitative ways that are prevalent among employers. Moreover, this law is among the numerous steps that municipalities and states have the ability to adopt to improve the working conditions for freelancers and employees who are not covered by conventional labor laws, such as the minimum wage or overtime rules. For more details on the Act and other related queries, email us.