Alex Suarez, JD Anticipated May 2025, Law & Public Policy Scholar
Freelancers are a distinct subcategory of independent contractors who operate on a project-by-project basis, providing specialized services to clients without long-term commitments. Unlike traditional independent contractors, who typically work for a single employer who has control over where and how they work and are provided with recurrent jobs, freelancers work on multiple, specialized projects on their own. As a result, many freelancers face challenges such as delayed or non-payment and extended working hours without overtime compensation.
Today, freelancers account for approximately thirty-six percent (36%) of the U.S. labor force and yet have none of the protections that employees have long had—even when promoting the exact same duties. By the year 2028, the number of freelancers in the United States is anticipated to soar to a whopping 90.1 million. One remarkable projection suggested that freelancers could constitute fifty-one percent (51%) of the U.S. workforce by the year 2027. This shift reflects a fundamental transformation in how individuals choose to engage with work, emphasizing the increasing prominence of freelancing as a preferred career path.
In Philadelphia, a city with a fluid and largely unmeasurable gig economy, freelancers are making their mark on the professional landscape. A recent study has identified Philadelphia as the 11th largest freelance hub in the metropolitan U.S. While municipal legislation has cemented Philadelphia’s commitment to equitable and just labor standards, its wage theft ordinance leaves non-traditional workers, like freelancers, without wage security as employers regularly misclassify employees to circumvent wage theft enforcement. Now is the time for Philadelphians to join the freelancer’s worker’s rights movement to ensure that its expanding freelance population is protected as the U.S. gig economy rapidly grows.
Major city governments have recognized the increasing importance of ensuring that freelancers are treated fairly. Already legislated in New York City (2016), Seattle (2021), and Minneapolis (2022), the “Freelance Isn’t Free Law” (FIFL) framework promoted by the Freelancers Union has provided a legal blueprint for empowering independent workers, ensuring that they are paid fairly and provided with the government support they need to thrive in the gig economy. Local policymakers, labor rights activists, and worker advocacy groups can look to such preexisting legislative initiatives and extrapolate three fundamental principles for freelancer protection from the “Freelance Isn’t Free Law” blueprint. This blogpost will delve into the importance of 1.) delineating clear contractual standards, 2.) establishing fair compliance protocols, and 3.) instituting competent enforcement mechanisms to create a comprehensive framework that addresses the evolving needs of independent workers.
Delineating Clear Contractual Standards
According to the 2022 Independent Economy Council report, a staggering seventy-four percent (74%) of freelance respondents claim not to be paid on time, with only twenty percent (20%) receiving payment within a day. Correspondingly, the prompt payment of freelancers has become a focal point in freelance protection efforts across the nation. Acknowledging the significance of timely compensation, the recent initiatives aim to protect freelance workers by enforcing payment within thirty days of completing their services. This commitment to punctual remuneration is exemplified by Minneapolis’ Freelance Worker Protection Ordinance, which mandates businesses, including digital platforms, to create written contracts for independent contractors when the compensation is expected to be $600 or more in a calendar year. These contracts must include details like names, addresses, services, compensation, and payment terms for cataloging any delinquencies in payment, with financial repercussions for employers who do not comply.
Establishing Fair Compliance Protocols
Nationwide efforts have led to a comprehensive understanding of the importance of flexible compliance protocols in safeguarding freelancers. Seattle’s Independent Contractor Protections (ICP) Ordinance, stands out as a pivotal attempt towards this end. This ordinance mandates detailed disclosures before entering contracts and at the time of payment, emphasizing the significance of mutual transparency between hiring entities and freelance contractors. Before commencing freelance work, the ICP Ordinance mandates a notice of rights for all freelancers, regardless of their citizenship status, which includes a pre-work written notice outlining proposed work terms and payment conditions. Timely payment, as specified in the pre-work notice or contract, is required, with a default of payment within thirty days after service completion if unspecified. Additionally, each payment must be accompanied by another written notice containing specific itemized payment information.
Instituting Competent Enforcement Mechanisms
The establishment and enforcement of labor standards are pivotal to ensuring equitable treatment for freelance workers when hiring entities fail to comply with the law. In New York City, a robust framework combines effective complaint procedures and civil actions as key components. Under the Freelance Isn’t Free Act, freelancers can utilize an online complaint system facilitated by the Office of Labor Standards to report non-payment or late payment by clients. The NYC Department of Consumer Affairs Office of Labor Policy & Standards (OLPS) aids freelancers through the Navigation Program, offering guidance and support. The process involves documentation, online complaint filing through the DCWP website, optional mediation, investigation, determination of violations, and legal action with a range of penalties for violations including injunctive relief, damages, double damages for repeat offenders, and attorneys’ fees in favor of the aggrieved freelancer. The demonstrated efficacy of this legal provision underscores its significance in upholding the rights of freelance workers as over 2,100 complaints have been filed from 2017-2022, and the vast majority of these were investigated fully, with more than 700 complainants receiving $2.9 million in unpaid fees recovered in that six-year period.
Conclusion
The Freelancer’s Bill of Rights represents a critical step toward sustainability and fairness in this evolving work sector. Recent legislative victories have been achieved in Los Angeles and Columbus, Ohio, while states like New York, California, New Jersey, Illinois, Kansas, and Missouri have proposed similar measures, indicating a broader national movement to safeguard freelancer rights. Freelancers play a vital role in Philadelphia’s economic and creative landscape, deserving fair and timely compensation. By securing their rights, Philadelphia can foster a more equitable environment, enabling freelancers to pursue their passions and contribute meaningfully to the city’s economic success.