Several statewide legislative updates involving independent contracting have recently gone into effect. We want to make companies and independent technicians aware of these laws by giving you visibility into what is happening and what this means for you

🔸Minnesota: Recognition of Negligent Selection Claims

Minnesota has introduced a notable change in the treatment of independent contractors under the law, specifically about negligent selection claims. Historically, businesses hiring independent contractors were generally not liable for the contractor’s actions. However, a recent development has now opened the door for claims of negligent selection of independent contractors.

What does this mean for you?

This change highlights the growing importance of carefully vetting independent contractors and verifying they possess the necessary skills and qualifications for the job. 

Leveraging a labor marketplace like Field Nation can eliminate the guesswork of finding, vetting, assigning, managing, and paying reliable field service techs. By enabling companies like yours to connect with thousands of independent contractors with skills in a variety of work types, you and your customers can have a clearer picture of who you are selecting to achieve successful outcomes and mitigate risk.

Learn more: Minnesota Selection of Independent Contractors

🔸New York: The Freelance Isn’t Free Act 

New York has expanded protections for freelance workers under the Freelance Isn’t Free Act (FIFA). Initially passed in New York City several years ago, this law is now effective statewide.

FIFA mandates that any freelance job worth $800 or more within a 120-day period must be documented with a written contract and timely compensation. This contract must outline key terms, including the scope of work, payment deadlines, and pay rate. 

What does this mean for you? 

This law only affects buyers with a business address in New York.

While companies are ultimately responsible for complying with employment laws, a platform that requires listing specific information as part of the work order, which serves as a written contract, helps ensure all required information is included. This is good news for field service leaders looking to navigate the legislative landscape most efficiently while staying ahead of the evolving requirements.  

Field Nation has recently updated work orders for companies with NY-based addresses to automatically add requirements to reflect FIFA compliance with minimal impact on business operations. 

Companies are responsible for paying an independent technician within 30 days of work order approval.

Learn more: New York State Freelance Isn’t Free Act (FIFA)

🔸Illinois: The Freelance Worker Protection Act

As of July 1, 2024, the Freelance Worker Protection Act (FWPA) is another significant legislative development in Illinois. This act safeguards freelancers’ rights by ensuring timely payment and providing legal recourse during disputes. 

Under the FWPA, freelance workers are entitled to a written contract for any work amounting to $500 or more. Like New York’s FIFA, the agreement must specify the scope of work, payment terms, and the compensation rate.

What does this mean for you? 

Although companies are responsible for complying with employment regulations, platforms that require specific details in work orders, which create a written contract, help ensure all required information is included. This approach benefits field service leaders who need to navigate legal requirements efficiently while staying proactive in responding to changing regulations.

Field Nation has made updates to automatically populate a new work order field for all Illinois-based work orders in compliance with FWPA, with minimal disruption to business operations. 

Companies are responsible for paying an independent technician within 30 days of work order approval.

Learn more: Illinois Freelance Worker Protection Act (FWPA).

In Conclusion

These legislative changes reflect a broader trend toward increased regulation and protection for independent contractors across various states. Staying informed about legislative changes is crucial for independent contractors and companies. Companies can mitigate risks and maintain robust and compliant working relationships by understanding and adhering to these new laws. Should you have any legal questions, please consult with your attorney.

While companies are ultimately responsible for complying with employment laws, Field Nation continues to evaluate and take action to provide customers with solutions via its platform work orders with minimal impact on business operations.