HB 1331 Sauls, Robert
HB 1331 -- FREELANCE WORKERS
SPONSOR: Sauls
This bill establishes the "Freelance Isn't Free Act".
The bill defines "freelance worker" as any person or organization composed of no more than one natural person, that is hired or retained as an independent contractor by a "hiring party", as defined in the bill, to provide services in exchange for an amount equal to or greater than $250 by itself or when aggregated with all contracts for services during the preceding 120 days. The definition excludes a sales representative, a person engaged in the practice of law, a licensed medical professional or a construction contractor.
The bill requires a written contract from a hiring party and payment of the contracted compensation to the freelance worker on or before the date the compensation is due per the contract but no later than 30 days after completion of the services under the contract. The bill outlines the information that needs to be included in the contract. The hiring party is required to retain the contract for no less than six years and make it available to the Missouri Department of Labor and Industrial Relations. The Department is authorized to develop model contracts for usage in English and Spanish.
The bill specifies that the Department is to investigate complaints for violations of the provisions in the bill, and to provide a statement including the appropriate remedy. Under the bill, a freelance worker who files a complaint should receive a written description of the complaint process, case conference, potential civil and criminal penalties and collection procedures.
The bill tasks the Department with duties, powers and authority relating to investigations and attempting to equitably resolve controversies between the freelance worker and hiring party; to take assignment of claims; to enter into reciprocal agreements with the labor departments or agencies of any other state; to take action in the courts of other states for the collection of claims and judgments.
The Department or the Attorney General may join in a single action any number of wage claims against the same hiring party. The Attorney General has the authority to sue hiring parties in wage claims.
No hiring party shall threaten, intimidate, harass, discriminate or take action that penalizes a freelance worker as explained in the bill. A freelance worker may bring a private right of action for damages for violations under the bill, within the statutory period of limitations. Further, a plaintiff who prevails on a claim alleging violations for not being paid compensation per the contractual agreement shall be awarded damages specifically outlined in the bill, including reasonable attorney's fees and costs. Further such plaintiff may be entitled to injunctive relief and other appropriate remedies. The recovery of damages for other violations is detailed in the bill.
If a hiring party engages in a pattern or practice of violating the provisions of the bill, the Attorney General may bring a civil action on behalf of the state as detailed in the bill.
Under the bill, a provision in the contract claiming to waive rights is void as against public policy. Further, the contract is not to be construed as providing a determination about the legal classification of any worker as an employee or independent contractor.
The Department is authorized to conduct a public awareness outreach campaign including publication of the requirements of the bill on its website. The Department is to capture information from the freelance worker through a voluntary survey process. Further, the Department shall collect and track information about complaints alleging violations of this bill.
One year after the effective date of the bill, and every fifth year thereafter, by November first, the Department shall submit to the legislature and publish on its website a report that includes information explained in the bill, regarding the effectiveness of the provisions of the bill and of improving freelance contracting and payment practices.