From JDSupra, Mark Goldstein and Cindy Schmitt Minniti discuss rules issued by the New York City Department of Consumer Affairs that govern the company-freelancer relationship. In particular, the rules threaten provisions that require binding arbitration and waive a freelancer’s right to participate in a class action lawsuit. Mark and Cindy write:
As part of the Act’s implementation, the NYC Department of Consumer Affairs, the agency tasked with enforcing the new law, recently issued rules(the Rules) clarifying the Act’s provisions. Specifically, the Rules:
- Invalidate contractual provisions that purport to waive or limit an independent contractor’s right to participate in or receive relief from a collective or class action – thereby preventing employers from using collective/class action waivers in independent contractor agreements – or to disclose the terms of the contract at issue to the NYC Office of Labor Standards
- Void any contractual provision that attempts to waive or limit, as it relates to a freelancer, any procedural right normally afforded to a party in a civil or administrative action. This Rule appears intended to, at the very least, invalidate mandatory arbitration provisions in independent contractor agreements.
Read the full story at NYC Agency Publishes Rules for New Independent Contractor Law | Reed Smith – JDSupra
