New legislation would allow freelancers to receive upfront payment through a City-run fund, addressing late payments affecting over one million workers across New York City.

New York, NY: Council Member Chi Ossé today introduced legislation to create a City-run Freelancers Payment Fund, a new system designed to ensure freelancers get paid on time by allowing them to receive payment through the City rather than waiting on hiring parties.

Even after the passage of the Freelance Isn’t Free Act, freelancers across New York City continue to face delayed or missing payments — 75% of freelancers, roughly 150,000 people each year, experience late pay. Nonpayment can be detrimental, affecting their ability to cover rent, necessities, and basic expenses. The Freelancers Payment Fund would allow freelancers to receive payment through the City for a small fee, rather than waiting on hiring parties, who would then reimburse the fund. This gives freelancers faster access to income and removes the burden of late payments, avoiding weeks-long complaint processes or small claims court while bills pile up.

The fund is designed as an optional service that freelancers can choose to opt into. The program would be administered by the Department of Small Business Services in coordination with the Economic Development Corporation, which would handle the fund’s operations. Additionally, the Department of Consumer and Worker Protection could play a key role given its existing oversight of freelancer issues, particularly when it comes to implementation and enforcement.

“Freelancers built New York City’s creative economy, and they deserve to get paid on time, without begging for what they’ve already earned,” said Council Member Chi Ossé. “Freelancers are still chasing invoices, sending follow-ups, and waiting months to get paid, if they get paid at all. My bill, the Freelance Payment Fund, would guarantee freelancers can access their earnings on time. So think of it like Venmo Instant Transfer but backed by the City! The Freelance Isn’t Free Act established necessary safeguards, but ten years later, it’s time to strengthen them.”

“Freelancers don’t have a payroll department to lean on — they are the payroll department. This bill recognizes that reality and offers a solution. A City-backed payment fund means freelancers can stop chasing checks and start focusing on their work,” said Interim Executive Director, Elle Toussi. “We thank Councilmember Ossé for partnering on this innovative legislation.”

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