New FIFTA Law - Is your website or you at risk for incompliance?

Everett Level X⁴

December 22, 2016, 7:27 am

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New FIFTA Law - Is your website or you at risk for incompliance?

Do you employ, or are you a freelancer in New York? There's a new law that is going to go into effect May 2017, that requires contracts for both parties with freelancer projects that are $1200 and more over a 6 month period. If you make most of your money freelancing, make over $1200 in a 6 month, and live in New York, or are doing freelance work for a client then in May 2017 contracts will be needed.

This new law will also allow freelancers to file complaints with the Department of Labor Standards for nonpaying, or late paying contracts. This new law seems to look great from the outside, but if you are freelancing for a living, and earning more than $1200 per month than you'll need to be compliant with the new law.

This got me thinking, while reading a discussion that Mike posted titled "Freelancing in New York just got a lot safer", what about marketplaces such as seocheckout? Since the website is not located in New York, but has freelancers that live in New York, and clients that orders from freelancers in New York would the marketplaces need to be compliant?

I believe when the new law goes into effect then freelance marketplaces would need to be compliant or will probably get in trouble for being incompliant. However, there is still a lot of time to be compliant so hopefully this marketplace would meet their requirements.

So what do you think about this? Do you think freelance marketplaces would need to be complaint?

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TommyCarey

I think it would fall into where Ionicware was incorporated. Since it was not incorporated in New York then I don't think they have to worry about this much. There are not contracts through seocheckout, so they're safe on that end. But there are plenty of people here who make more than $1200 in a 6 month period, so that could end up being a problem

8 years ago

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Everett

Yeah, i mean, im confused because if I lived in new york, and this law was in effect. Would that mean since i am using this platform that I would need to create these contracts? Most freelancers earn more than $1200 in a 6 month time period. So you can be assured that a large portion of New York freelancers would have to end up creating these contracts.

This is safe, for freelancers, yes, but it is also a hindrance because of the contracts themselves. I just wish sometimes people would be more trustworthy, and laws like this would not exist. But that is wishful thinking.

8 years ago

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Lynne

But surely this marketplace is the contract right? There are terms and conditions on this website that the buyer and the seller needs to stick to and these are stated here. I would think that the law applies when the work being done between buyer and seller is done directly and not through an online marketplace.

8 years ago

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Everett

I would think that the law applies when the work being done between buyer and seller is done directly and not through an online marketplace.

Very valid points. I'm not so certain. Even if you have a website, and even if you have Terms & Conditions you still have to follow applicable laws. You can not run a website, and fail to follow the law. for instance, to buy ecigarettes, or even cigarettes you need to verify your age. If I were to open a website to sell tobacco, and didn't verify ages of the customers I would be fined, and could possibly face charges and go to court.

Not so sure if FIFTA law is really that big...

8 years ago

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Seocheckout

New FIFTA Law - Is your website or you at risk for incompliance?

New FIFTA Law - Is your website or you at risk for incompliance?

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