You are a freelancer in New York, juggling multiple clients and projects, and your clients consistently fail to pay your agreed upon rates. You remember having a friend who works in corporate face the same issue. They filed a claim under the Fair Labor Standards Act (FLSA) and received the compensation that they deserve.
Now, you wonder if the same relief applies to you. However, the answer might not be as straightforward as you think. Before you can file a claim under the FLSA, you must first understand how New York law classifies your working relationship with your client.
The difference between a freelancer and an employee
The distinction between employees and freelancers determines whether you are entitled to FLSA legal protections or not. Employees work under an employer’s control and direction. Their company typically sets their schedule, provides them with tools and supervises their daily tasks.
Meanwhile, as a freelancer, you have more freedom over how you do your work. You control your own schedule and use your own tools and equipment. Additionally, you are also responsible for invoicing your services and managing your own taxes.
However, this level of freedom comes with certain trade-offs when it comes to legal protections. This trade-off becomes critical when you face unpaid wages and seek legal remedies to correct your situation.
How this affects your FLSA rights
Being an employee or a freelancer directly influences your eligibility for FLSA protection. Legally speaking, the terms freelancer and independent contractor mean the same thing. They are both non-employees and do not get the same legal protections as typical employees.
Hence, understanding how your employer classifies your working relationship helps you determine if the legal options under the FLSA can apply to your unique situation. The FLSA relief usually only covers employees, creating the following challenges for freelancers seeking relief for unpaid compensation:
- Limited federal coverage: The FLSA generally excludes independent contractors, preventing you from filing claims for unpaid wages or overtime under the federal law.
- Misclassification complications: Some companies may label you as a freelancer when you are clearly functioning as an employee, creating confusion about your legal rights.
- Absence of Formal Contracts: If you don’t have a written employment agreement, it becomes harder to prove your worker status. This can leave you vulnerable when payment disputes arise.
Knowing how your client classifies your working relationship is key to knowing if the FLSA protects you or not. If they identify you as a freelancer, get legal help right away. A lawyer can show you the best ways to protect your income.
Safeguard your earnings with legal help
Even without FLSA coverage, you still have options for recovering unpaid wages. State laws often provide legal protections that federal laws do not cover. Hence, it is essential to seek legal advice to help you explore options in safeguarding your earnings even as a freelancer.
