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Freelancer RightsKnow what you are owed, and why
Who is protectedApplies in: New York City

You are covered if you are a one-person business hired as an independent contractor

The New York City law protects any natural person, or any organization made up of no more than one natural person — incorporated or not, trade name or not — who is hired as an independent contractor to provide services for compensation. Sales representatives, practicing lawyers and licensed medical professionals are excluded.

2What that means

  • Working through an LLC or a trade name does not remove protection, as long as the organization is a single person.
  • Courts have found that more than one person behind the contracting entity can put a claim outside the definition.
  • Three categories are written out of the definition: sales representatives as defined in Labor Law § 191-a for the contract at issue, lawyers in good standing practicing law under the contract, and licensed medical professionals.
  • A hiring party is anyone who retains a freelance worker for services, except government bodies listed in the statute.

3In a real case, this is what happened

In Chen v. Romona Keveza Collection, an appellate court granted liability to freelancers who used assistants and an agent

Appellate Division, First Department · April 24, 2025 · Index No. 153413/20|Appeal No. 4191|Case No. 2024-03863|

What the freelancer alleged
Freelancers, including a model, sued over unpaid work; the hiring party contested whether they qualified as freelance workers given assistants and agency representation.
What the court actually ruled
On April 24, 2025, the Appellate Division, First Department granted the freelancers summary judgment on liability against Romona Keveza Collection and otherwise affirmed. An earlier July 2022 appellate decision had reinstated the model's claim.
The key reason
The court addressed who qualifies as a freelance worker, including a single-person business that uses assistants and is represented by an agent.
Stage of the case
Summary judgment on liability — a finding of liability, not a fixed damages award.

Liability was decided; the amount owed and whether it was paid are separate questions this project has not verified.

Full record for this caseOriginal decision source

In Paolitto v. Ladders Inc., a two-member LLC fell outside the definition

Supreme Court, New York County · February 28, 2022 · Index No. 655289/2020

What the freelancer alleged
The claim was brought by an entity with two members rather than one.
What the court actually ruled
The complaint was dismissed. Permission to add the LLC for a contract claim did not revive the Freelance Isn't Free Act claims.
The key reason
A two-member LLC does not match the statutory definition of a freelance worker.
Stage of the case
Motion to dismiss — granted.

This is a trial-level decision in New York County Supreme Court; how much weight it carries elsewhere depends on the court hearing your case.

Full record for this caseOriginal decision source

4What matters for you

These are the facts and documents that decided the cases above. Gathering them does not decide your case, and this is general information rather than advice about it.

  • Whether you contracted personally or through an entity, and how many people own that entity.
  • Whether the contract at issue made you a sales representative under Labor Law § 191-a.
  • Whether you were retained as an independent contractor rather than an employee.
  • Whether anyone else performed the work with you, and in what role.
  • Who actually retained you — the direct client, an agent, or a company further up a chain of subcontracts.

5Where this applies

  • New York City Administrative Code § 20-927 contains the definitions of freelance worker and hiring party for the City law.
  • Who counts as a hiring party has been fought over repeatedly: in Iams v. 10X Mgt. the agent was found not to be the hiring party, while in Ortiz v. Consolidated Edison the court let claims proceed against a company that engaged the workers indirectly through subcontractors.
The law behind this right
Decisions connected to this right