Columbus City Council Passes New Legislation Protecting Freelance Workers
With the gig economy on the rise and an increasing number of individuals embracing freelance work as a primary means of income, Columbus City Council recently approved new legal protections for independent contractors that are meant to guarantee correct and timely payment to freelance workers.
The ordinance, which went into effect on May 31, 2023, adds sections to the city’s municipal code requiring employers to use written contracts when hiring freelancers to perform $250 or more of services over a four-month period.
Requirement of Written Agreement
Under the ordinance, the hiring party is responsible for creating the contract unless the parties both agree to use a contract provided by the freelance worker.
Among other details, the contract must include the following:
An itemization of all the services to be provided by the freelancer
The rate and method of compensation by which the worker will be paid
A payment deadline, which must either be a specific date or due no more than 30 days from the completion of work
In addition to the contract requirement, the ordinance establishes new regulations regarding employer payment practices, mandating that hiring parties must pay freelancers the contracted amount in a timely manner. If the contract includes a specific pay date, this means that the employer must pay the freelance worker on or before this date. Likewise, if no specific date is identified in the contract, the hiring party must pay the freelancer within 30 days of completing the services outlined in the contract.
Prohibition on Retaliation
Next, the ordinance prohibits employers from retaliating against freelance workers for exercising the rights created by the ordinance and establishes a procedure for filing complaints against employers who fail to comply. Freelancers can file complaints with the Wage Theft Prevention and Enforcement Commission under Chapter 377 of the Columbus City Codes, which will pursue solutions with the hiring parties directly. If needed, the city will also connect freelance workers with a local service to obtain legal representation and potentially cover the costs.
Conclusion
As this ordinance goes into effect, Columbus employers who regularly use freelance workers may need to revise their hiring and payment practices to ensure compliance with the new legal requirements. Notably, employers who do not currently use written contracts with their freelance hires will need to develop at least one standard contract to provide to freelancers who will perform more than $250 of services.
An experienced local business attorney can assist you in creating freelancer contracts that both protect your company’s interests and fulfill the legal requirements of this new law. Anthony Law can assist your business with drafting contracts that will be in compliance with the Columbus ordinance.