HB 1122

Abstract

Creates the Freelance Worker Protection Act. Provides that freelance workers must be compensated by hiring parties for their services in a timely manner. Provides that whenever a hiring party retains the services of a freelance worker, the contract between the hiring party and the freelance worker shall be reduced to writing. Provides that no hiring party shall threaten, intimidate, discipline, harass, deny a work opportunity to, or discriminate against a freelance worker, or take any other action that penalizes a freelance worker for, or is reasonably likely to deter a freelance worker from, exercising or attempting to exercise any right guaranteed under the Act. Contains provisions concerning complaints to the Director of Labor; the powers and duties of the Director; civil actions brought by freelance workers; civil actions brought by the State; the scope of freelance worker contracts; a public awareness campaign; and surveys, information collection, and reporting requirements. Effective immediately. House Committee Amendment No. 2 Replaces everything after the enacting clause. Creates the Freelance Worker Protection Act. Provides that, except as otherwise provided by law, a freelance worker shall be paid the contracted compensation amount no later than 30 days after the freelance worker provides the product or completes the services under the contract. Provides that once a freelance worker has commenced preparation of the product or performance of the services under the contract, a contracting entity shall not require as a condition of timely payment that the freelance worker accept less compensation than the amount of the contracted compensation. Requires written contracts for services or products provided by a freelance worker. Sets forth the information such written contracts must include. Provides that a contracting entity must retain its contract with a freelance worker for no less than 2 years and must make the contract available to the Department of Labor upon request. Requires the Department to make model contracts available on its website for use by the general public at no cost. Prohibits a contracting entity from taking any action that penalizes a freelance worker for, or is reasonably likely to deter a freelance worker from, exercising or attempting to exercise any right guaranteed under the Act. Sets for the procedure for freelance workers to file a complaint alleging a violation of the Act. Provides that complaints shall be reviewed by the Department to determine whether there is cause for the Department to initiate the process of facilitating the exchange of information between the parties. Contains provisions concerning notification and response requirements. Authorizes the Attorney General to initiate or intervene in a civil action if the Attorney General has reasonable cause to believe that any person or entity is engaged in a pattern and practice prohibited under the Act. Contains provisions concerning Attorney General investigations; civil penalties; and other enforcement matters. Provides that, subject to appropriation, the Department may conduct a public awareness campaign regarding the Act that, at a minimum, includes making information available on its website, otherwise informing contracting entities of the provisions of this Act, and establishing a means for assistance by a natural person through phone or email. Requires the Department to submit a report every 5 years to the General Assembly on freelance contracting and payment practices, the number of complaints received by the Department alleging a violation of the Act, and other matters. Requires the Department to publish each report on its website. Grants the Director rulemaking authority. Effective July 1, 2024. House Floor Amendment No. 3 Replaces everything after the enacting clause. Reinserts the provisions of the bill as amended by House Amendment No. 2 with the following changes: Provides that except as otherwise provided by law, a freelance worker shall be paid the contracted compensation amount on or before the date the compensation is due under the terms of the contract. Provides that if the contract does not specify when the hiring party must pay the contracted compensation or the mechanism by which the date will be determined, compensation shall be due no later than 30 days after the completion of the freelance worker's services under the contract. In provisions concerning contracts for products and services of freelance workers, removes a provision that requires each party to the written contract to retain a copy for a period of 2 years after the products or services are provided. Provides that the definition of "freelance worker" does not include an individual performing construction services. Defines "construction". Makes other changes. Effective July 1, 2024.