New York City affords freelance workers extra protection against unsavory employers when it comes to debt collection. New York City’s administrative code Title 20 awards double damages plus more to freelancers who meet the criteria and follow the process for filing non-payment debt collection claims.
Who Benefits From Title 20?
You will need to determine whether you meet the requirements to proceed under the city code to avail yourself of the recovery and additional penalty of $250 allowable under Title 20.
First, you will need to meet the definition of a freelancer. In broad terms, a freelance worker is usually a solo worker. It’s not relevant whether the individual operates as a corporation or a sole practitioner. In order to qualify, you must not be engaged in the practice of law, be a sales representative, or medical professional.
Can the Employer Be Named As a Party to the Act?
Any employer except for the government or municipality can be subject to the provisions and additional penalties of Title 20.
Does There Need to Be a Written Contract?
There needs to be a contract if the total of the services rendered within four months or so totals $800. There is a provision that addresses if you requested a contract in writing and never received one.
Is Your Claim Timely?
You have two years to file a complaint under Title 20. If the agreement did not provide a payment date, the payment date is assumed to be 30 days from the date of service.
You will also need to confirm that you do not have a civil action pending for the same relief.
In general, if you meet the above requirements, you will most likely be able to proceed with your claim.
That being said, don’t worry if you do not meet the requirements or if your claim exists against an employer outside of New York City. Generally, you have six years from the date of service to bring your claim. Although you may not be entitled to a judgment of double the amount of the claim, you should be able to obtain a judgment for the full principal claim or the value of your services, assuming you can document the claim, in addition to interest at 9%, legal interest, against the employing company
Are you a freelancer who has not been paid? Do you want to learn more about debt collection for freelancers or need help navigating the debt collection system to recover your money? If so, contact us at Frank, Frank, Goldstein and Nager, we have the experience that pays.
