A video editor named B never signed a formal contract or reported to an office, but each day they received detailed instructions via messenger, handled customer communication, and followed set work hours. They believed they were working as a freelancer—until they filed a wage complaint with the Department of Labor and discovered that, under the law, they were actually more like a full-time employee. In short, they were a misclassified “freelancer” with far fewer rights than they deserved.
As the number of freelancers, contract workers, and platform-based workers continues to rise in New Jersey and New York, the legal landscape has shifted. In today’s environment, legal status is no longer determined by job titles or informal agreements, but by the actual nature of the working relationship. As of 2025, both states have significantly strengthened protections for freelancers and independent contractors, placing greater responsibility not only on employers but also on workers themselves to understand their contracts and assert their rights.
This column breaks down the latest legal standards governing freelancers in NJ and NY, highlights common misclassification issues, and outlines what you need to know to protect your rights in today’s gig economy.
The Line Between Freelancer and Employee: Substance Over Form
Even if you’re called a “freelancer,” if you’re working under company control during fixed hours and performing core business tasks, the law may recognize you as an employee. In New Jersey, this determination is guided by what’s known as the ABC Test, a three-part standard. To be properly classified as an independent contractor, a worker must:
- Be free from the employer’s control and direction in performing the work,
- Perform services outside the usual course of the employer’s business or outside the employer’s place of business, and
- Be customarily engaged in an independently established trade, occupation, or business.
If any one of these criteria is not met, the worker is considered an employee under New Jersey law, entitling them to wages, tax contributions, unemployment benefits, and more.
New York applies a similar standard. In recent years, the state has intensified enforcement—employers who misclassify workers can face Stop-Work Orders, wage penalties, and fines imposed by the Department of Labor.
No Contract, No Protection — Why Written Agreements Matter
Many freelancers still rely on informal agreements made over the phone or by email. But as of 2025, both NJ and NY now legally require written contracts for most freelance work. Without one, not only can employers face penalties—freelancers may find themselves with little legal protection if disputes arise.
In New York, the Freelance Isn’t Free Act, expanded statewide as of May 2024, mandates that any freelance contract worth $800 or more must be in writing. The agreement must clearly specify the scope of work, payment amount, and payment due date. Payment must be made within 35 days of project completion. If these terms are violated, freelancers can seek double damages, attorney’s fees, and court-enforced remedies.
New Jersey is currently advancing similar legislation. As of 2025, any freelance arrangement valued at $600 or more is expected to require a written agreement. In the event of non-payment or breach, freelancers can file a complaint with the NJ Department of Labor and seek compensation.
“I’m Just a Freelancer—No Sick Days, No Timely Pay. Do I Just Have to Accept That?”
Not anymore. As of 2025, both New Jersey and New York explicitly recognize that freelancers are protected from discrimination, retaliation, and wage theft.
For example, since 2020, New York law has granted freelancers the right to file complaints and pursue damages for workplace harassment, discrimination, and retaliatory actions. Just because you’re not a W-2 employee doesn’t mean you have to tolerate late payments, arbitrary termination, or discriminatory behavior.
Both states have established complaint procedures and legal remedies for violations. Evidence such as emails, text messages, and even simple contract documents can be sufficient to build a case. That’s why it’s critical to keep thorough records of communications and agreements before and during your engagement.
Real-World Cases of “Fake Freelancers”
In one recent case in New York, a video production freelancer completed a project, only to be told that payment was being withheld due to “quality issues.” With no written contract in place, the freelancer filed a complaint with the state labor department—and was awarded double damages for nonpayment and failure to provide a contract.
In New Jersey, a freelance developer working for a tech platform filed for employee status after being required to work fixed hours at the company’s office, taking direction via internal messaging platforms. After applying the ABC Test, the labor department concluded the individual was misclassified, and the employer was sanctioned for unpaid wages and tax violations.
The Law Is Getting Stronger. Are You Prepared?
Both New York and New Jersey are moving aggressively to strengthen protections for non-traditional workers, especially in creative, digital, and platform-based industries such as design, video, tech, and delivery services. For workers in these fields, having a clear written contract that outlines your scope of work, timeline, payment terms, and legal remedies is no longer optional—it’s essential.
Even a simple template or checklist can offer meaningful protection. And if you’re unsure, consulting with a legal professional before signing can save you from costly disputes down the road.
A Freelancer’s Rights Begin with a Contract
In today’s gig economy, doing great work is only part of the equation. What’s equally important is making sure you’re working under a structure that offers legal protection. Don’t let the label “freelancer” cost you your labor rights.
Before you start your next gig—or if you’re facing a dispute now—take action.
Need help reviewing a contract or addressing a payment issue?
Song Law Firm has deep experience in employment classification, freelance protections, and contract enforcement in both New Jersey and New York. Call us at 201-461-0031 or email mail@songlawfirm.com to schedule a free consultation today.
Disclaimer
This column is for general informational purposes only and does not constitute legal advice for any individual case. For specific legal advice, please consult a qualified attorney.
