| 1 | 1 | | 25 LC 52 0661 |
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| 2 | 2 | | Senate Bill 227 |
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| 3 | 3 | | By: Senator McLaurin of the 14th |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | To amend Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial |
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| 7 | 7 | | 1 |
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| 8 | 8 | | relations, so as to provide protections for freelance workers; to provide for a short title; to2 |
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| 9 | 9 | | provide for definitions; to require a contract between a freelance worker and a hiring party3 |
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| 10 | 10 | | to be in writing; to require certain contractual terms between a freelance worker and a hiring4 |
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| 11 | 11 | | party; to provide for timely payment of freelance workers by hiring parties; to require certain5 |
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| 12 | 12 | | contractual terms between a freelance worker and a hiring party; to prohibit retaliation; to6 |
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| 13 | 13 | | provide for a complaint and information facilitating procedure; to provide for duties, powers,7 |
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| 14 | 14 | | and authority of the Commissioner of Labor; to provide for civil enforcement; to provide for8 |
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| 15 | 15 | | enforcement by the Attorney General; to restrict when provisions or contracts are void; to9 |
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| 16 | 16 | | provide for the Department of Labor to conduct a public awareness outreach campaign; to10 |
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| 17 | 17 | | provide for the department to survey complainants; to require the department to track and11 |
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| 18 | 18 | | collect data and report results; to provide for rules and regulations; to provide for related12 |
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| 19 | 19 | | matters; to provide for an effective date and applicability; to repeal conflicting laws; and for13 |
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| 20 | 20 | | other purposes.14 |
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| 21 | 21 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15 |
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| 22 | 22 | | S. B. 227 |
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| 23 | 23 | | - 1 - 25 LC 52 0661 |
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| 24 | 24 | | SECTION 1. |
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| 25 | 25 | | 16 |
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| 26 | 26 | | Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations,17 |
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| 27 | 27 | | is amended by revising Chapter 11, which is designated as reserved, as follows:18 |
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| 28 | 28 | | "CHAPTER 1119 |
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| 29 | 29 | | 34-11-1.20 |
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| 30 | 30 | | This chapter shall be known and may be cited as the 'Freelance isn't Free Act.' |
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| 31 | 31 | | 21 |
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| 32 | 32 | | 34-11-2.22 |
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| 33 | 33 | | As used in this chapter, the term:23 |
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| 34 | 34 | | (1) 'Construction contractor' means any person, sole proprietor, partnership, firm,24 |
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| 35 | 35 | | corporation, limited liability company, association, or other legal entity who by oneself25 |
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| 36 | 36 | | or through others offers to undertake, holds oneself out as being able to undertake, or26 |
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| 37 | 37 | | does undertake a construction project.27 |
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| 38 | 38 | | (2) 'Construction project' means the providing of any labor or services, and the use of any28 |
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| 39 | 39 | | materials or equipment in order to alter, build, excavate, add to, subtract from, improve,29 |
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| 40 | 40 | | repair, maintain, renovate, move, wreck, or demolish any bridge, building, highway, road,30 |
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| 41 | 41 | | railroad, land, tunnel, sewer, drainage or other structure, project, development, or31 |
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| 42 | 42 | | improvement, or the doing of any part thereof, including the erection of scaffolding or32 |
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| 43 | 43 | | other structures or works in connection therewith.33 |
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| 44 | 44 | | (3) 'Freelance worker' means any natural person residing in this state or organization34 |
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| 45 | 45 | | composed of no more than one natural person residing in this state, whether or not35 |
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| 46 | 46 | | incorporated or employing a trade name, that is hired or retained by a hiring party to36 |
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| 47 | 47 | | provide services in exchange for an amount equal to or greater than $800.00, either by37 |
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| 48 | 48 | | itself or when aggregated with all contracts for services between the same hiring party38 |
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| 49 | 49 | | and freelance worker during the immediately preceding 120 days, but shall not include39 |
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| 50 | 50 | | S. B. 227 |
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| 51 | 51 | | - 2 - 25 LC 52 0661 |
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| 52 | 52 | | any person who, pursuant to the contract at issue, is a sales representative, licensed legal40 |
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| 53 | 53 | | professional, licensed medical professional, or construction contractor.41 |
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| 54 | 54 | | (4) 'Hiring party' means any person who retains a freelance worker to provide any42 |
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| 55 | 55 | | service. Such term shall not include the United States government, the state, or any43 |
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| 56 | 56 | | political subdivision thereof, or any department, agency, or instrumentality of the same.44 |
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| 57 | 57 | | 34-11-3.45 |
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| 58 | 58 | | (a) When a hiring party retains the services of a freelance worker, the contract between46 |
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| 59 | 59 | | such party and worker shall be reduced to writing. The hiring party shall furnish a copy47 |
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| 60 | 60 | | of such written contract, either physically or electronically, to the freelance worker, and48 |
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| 61 | 61 | | each party to the written contract shall retain a copy thereof.49 |
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| 62 | 62 | | (b) The written contract shall include, at a minimum, the following information:50 |
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| 63 | 63 | | (1) The name and mailing address of both the hiring party and the freelance worker;51 |
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| 64 | 64 | | (2) An itemization of all services to be provided by the freelance worker, the value of the52 |
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| 65 | 65 | | services to be provided pursuant to the contract, and the rate and method of53 |
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| 66 | 66 | | compensation;54 |
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| 67 | 67 | | (3) The date on which the hiring party must pay the contracted compensation or the55 |
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| 68 | 68 | | mechanism by which such date will be determined; and56 |
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| 69 | 69 | | (4) The date by which a freelance worker must submit a list of services rendered under57 |
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| 70 | 70 | | such contract to the hiring party in order to meet any internal processing deadlines of58 |
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| 71 | 71 | | such hiring party for the purposes of compensation being timely rendered by the59 |
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| 72 | 72 | | agreed-upon date as stipulated in paragraph (3) of this subsection.60 |
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| 73 | 73 | | (c) The Commissioner may by rule or regulation require additional terms to ensure that the61 |
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| 74 | 74 | | freelance worker and the hiring party understand their obligations under the contract.62 |
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| 75 | 75 | | (d) Such hiring party shall be required to keep such contract for a period of no less than63 |
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| 76 | 76 | | six years and shall make such contract available to the Commissioner upon request. The64 |
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| 77 | 77 | | failure of a hiring party to produce such contract, upon request of the Commissioner, shall65 |
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| 78 | 78 | | S. B. 227 |
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| 79 | 79 | | - 3 - 25 LC 52 0661 |
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| 80 | 80 | | give rise to a presumption that the terms that the freelance worker has presented are the66 |
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| 81 | 81 | | agreed upon terms.67 |
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| 82 | 82 | | (e) The Commissioner shall make available model contracts on the website of the68 |
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| 83 | 83 | | department for use by the general public at no cost. Such model contracts shall be made69 |
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| 84 | 84 | | available in English and in the five languages most commonly spoken by limited English70 |
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| 85 | 85 | | proficient individuals in the state.71 |
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| 86 | 86 | | 34-11-4.72 |
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| 87 | 87 | | (a) Except as otherwise provided by law, the contracted compensation shall be paid to a73 |
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| 88 | 88 | | freelance worker either:74 |
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| 89 | 89 | | (1) On or before the date such compensation is due under the terms of the contract; or75 |
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| 90 | 90 | | (2) If the contract does not specify when the hiring party must pay the contracted76 |
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| 91 | 91 | | compensation or the mechanism by which such date will be determined, no later than 3077 |
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| 92 | 92 | | days after the completion of the freelance worker's services under the contract.78 |
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| 93 | 93 | | (b) Once a freelance worker has commenced performance of the services under the79 |
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| 94 | 94 | | contract, the hiring party shall not require as a condition of timely payment that the80 |
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| 95 | 95 | | freelance worker accept less compensation than the amount of the contracted81 |
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| 96 | 96 | | compensation.82 |
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| 97 | 97 | | 34-11-5.83 |
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| 98 | 98 | | No hiring party shall threaten, intimidate, discipline, harass, deny a work opportunity to,84 |
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| 99 | 99 | | or discriminate against a freelance worker, or take any other action that penalizes a85 |
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| 100 | 100 | | freelance worker for, or is reasonably likely to deter a freelance worker from, exercising86 |
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| 101 | 101 | | or attempting to exercise any right provided for in this chapter, or from obtaining any87 |
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| 102 | 102 | | future work opportunity because the freelance worker has done so.88 |
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| 103 | 103 | | S. B. 227 |
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| 104 | 104 | | - 4 - 25 LC 52 0661 |
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| 105 | 105 | | 34-11-6.89 |
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| 106 | 106 | | (a) Any freelance worker or his or her authorized representative may file with the90 |
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| 107 | 107 | | Commissioner a complaint alleging a violation of this chapter, requesting an investigation91 |
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| 108 | 108 | | of such complaint, and stating the appropriate remedy, if any. The Commissioner is92 |
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| 109 | 109 | | authorized to request or require any information deemed relevant to the complaint. The93 |
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| 110 | 110 | | department shall provide the complainant with a notice of the anticipated processing of the94 |
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| 111 | 111 | | complaint, including any investigation, information facilitation, or case conferences.95 |
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| 112 | 112 | | (b) Complaints shall be reviewed by the department to determine whether there is cause96 |
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| 113 | 113 | | for the department to initiate the process of facilitating the exchange of information97 |
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| 114 | 114 | | between the freelance worker and the hired party. When the Commissioner determines98 |
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| 115 | 115 | | there is such cause, the Commissioner shall send the notice of complaint to the other party99 |
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| 116 | 116 | | by certified mail. The Commissioner shall keep the names of freelance workers who are100 |
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| 117 | 117 | | the subject of an investigation confidential until such time that disclosure is necessary for101 |
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| 118 | 118 | | resolution of an investigation or a complaint.102 |
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| 119 | 119 | | (c) Within 20 days of receiving the notice of complaint, the hiring party shall submit a103 |
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| 120 | 120 | | response to the Commissioner. Failure to respond to such notice within 20 days shall104 |
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| 121 | 121 | | create a rebuttable presumption in any civil action commenced in accordance with this105 |
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| 122 | 122 | | chapter that the hiring party committed the violation alleged in the complaint.106 |
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| 123 | 123 | | (d) Within 20 days of receiving written response from the hiring party, the Commissioner107 |
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| 124 | 124 | | shall send the freelance worker a copy of the hiring party's response, any accompanying108 |
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| 125 | 125 | | enclosures, and materials informing the freelance worker about the rights provided for in109 |
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| 126 | 126 | | this chapter. If the Commissioner receives no response from the hiring party, the110 |
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| 127 | 127 | | Commissioner shall mail a notice of nonresponse to both the freelance worker and the111 |
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| 128 | 128 | | hiring party. Upon satisfying the requirements of this subsection, the Commissioner may112 |
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| 129 | 129 | | close the case.113 |
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| 130 | 130 | | (e) Failure of a hiring party to keep adequate records or provide a written contract as114 |
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| 131 | 131 | | required under Code Section 34-11-3, in addition to exposing such hiring party to penalties115 |
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| 132 | 132 | | S. B. 227 |
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| 133 | 133 | | - 5 - 25 LC 52 0661 |
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| 134 | 134 | | authorized under such Code section, shall not operate as a bar to filing of a complaint by116 |
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| 135 | 135 | | a freelance worker. In such a case, the hiring party in violation shall bear the burden of117 |
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| 136 | 136 | | proving that the complainant was paid in accordance with Code Section 34-11-2 and that118 |
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| 137 | 137 | | the hiring party is in compliance with this chapter.119 |
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| 138 | 138 | | (f) Each freelance worker and his or her authorized representative shall be notified in120 |
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| 139 | 139 | | writing of any case conference before it is held and given the opportunity to attend and of121 |
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| 140 | 140 | | any award and collection of civil penalties.122 |
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| 141 | 141 | | 34-11-7.123 |
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| 142 | 142 | | (a) The Commissioner shall investigate completed complaints provided for in Code124 |
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| 143 | 143 | | Section 34-11-6 and, if the Commissioner deems it necessary or advisable, shall attempt125 |
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| 144 | 144 | | to adjust equitably controversies between freelance workers and hiring parties relating to126 |
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| 145 | 145 | | this chapter.127 |
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| 146 | 146 | | (b) The Commissioner may, to the extent provided for by any reciprocal agreement entered128 |
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| 147 | 147 | | into by law or with any agency of another state, maintain actions in the courts of such other129 |
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| 148 | 148 | | state for the collection of claims and judgments for wages and may assign such claims and130 |
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| 149 | 149 | | judgments to the labor department or agency of such other state for collection to the extent131 |
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| 150 | 150 | | that such an assignment may be permitted or provided for by the law of such state or by132 |
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| 151 | 151 | | reciprocal agreement.133 |
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| 152 | 152 | | (c) The Commissioner may, upon the written consent of the labor department or other134 |
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| 153 | 153 | | corresponding agency of any other state or of any person, board, officer, or commission of135 |
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| 154 | 154 | | such state authorized to act on behalf of such labor department or corresponding agency,136 |
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| 155 | 155 | | maintain actions in the courts of this state for wages arising in such other state in the same137 |
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| 156 | 156 | | manner and to the same extent that such actions by the Commissioner are authorized when138 |
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| 157 | 157 | | arising in this state. However, such actions may be maintained only in cases where such139 |
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| 158 | 158 | | other state by law or reciprocal agreement extends a like comity to cases arising in this140 |
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| 159 | 159 | | state.141 |
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| 160 | 160 | | S. B. 227 |
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| 161 | 161 | | - 6 - 25 LC 52 0661 |
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| 162 | 162 | | 34-11-8.142 |
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| 163 | 163 | | (a)(1) A freelance worker alleging a violation of this chapter may bring an action in any143 |
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| 164 | 164 | | court of competent jurisdiction for damages.144 |
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| 165 | 165 | | (2) Any action alleging a violation of Code Section 34-11-3 shall be brought within two145 |
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| 166 | 166 | | years after the acts alleged to have violated this chapter occurred.146 |
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| 167 | 167 | | (3) Any action alleging a violation of Code Section 34-11-4 or 34-11-5 shall be brought147 |
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| 168 | 168 | | within six years after the acts alleged to have violated this chapter occurred.148 |
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| 169 | 169 | | (4) Within ten days after having commenced a civil action pursuant to this chapter, a149 |
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| 170 | 170 | | plaintiff shall serve a copy of the complaint upon an authorized representative of the150 |
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| 171 | 171 | | Commissioner. Failure to so serve a complaint shall not adversely affect any plaintiff's151 |
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| 172 | 172 | | cause of action.152 |
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| 173 | 173 | | (5) A plaintiff who solely alleges a violation of Code Section 34-11-3 must prove that153 |
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| 174 | 174 | | such plaintiff requested a written contract before the contracted work began.154 |
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| 175 | 175 | | (b)(1) A plaintiff who prevails on a claim alleging a violation of Code Section 34-11-4155 |
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| 176 | 176 | | shall be awarded damages as described in this subsection and an award of reasonable156 |
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| 177 | 177 | | attorneys' fees and costs.157 |
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| 178 | 178 | | (2)(A) A plaintiff who prevails on a claim alleging a violation of Code Section 34-11-3158 |
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| 179 | 179 | | shall be awarded statutory damages of $250.00.159 |
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| 180 | 180 | | (B) A plaintiff who prevails on a claim alleging a violation of Code Section 34-11-3160 |
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| 181 | 181 | | and on one or more claims under other provisions of this chapter shall be awarded161 |
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| 182 | 182 | | statutory damages equal to the value of the underlying contract for the violation in162 |
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| 183 | 183 | | addition to the remedies specified in this chapter for such other violations.163 |
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| 184 | 184 | | (3) In addition to other damages awarded pursuant to this chapter, a plaintiff who164 |
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| 185 | 185 | | prevails on a claim alleging a violation of Code Section 34-11-4 shall be entitled to an165 |
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| 186 | 186 | | award of double damages, injunctive relief, and other such remedies as may be166 |
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| 187 | 187 | | appropriate.167 |
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| 188 | 188 | | S. B. 227 |
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| 189 | 189 | | - 7 - 25 LC 52 0661 |
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| 190 | 190 | | (4) In addition to any other damages awarded pursuant to this chapter, a plaintiff who168 |
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| 191 | 191 | | prevails on a claim alleging a violation of Code Section 34-11-5 shall be entitled to169 |
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| 192 | 192 | | statutory damages equal to the value of the underlying contract for each violation arising170 |
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| 193 | 193 | | under such Code section.171 |
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| 194 | 194 | | 34-11-9.172 |
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| 195 | 195 | | (a)(1) Where reasonable cause exists to believe that a hiring party is engaged in a pattern173 |
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| 196 | 196 | | or practice of violations of this chapter, the Attorney General may commence a civil174 |
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| 197 | 197 | | action on behalf of the state in a court of competent jurisdiction.175 |
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| 198 | 198 | | (2) An action pursuant to paragraph (1) of this subsection shall be commenced by filing176 |
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| 199 | 199 | | a complaint setting forth facts relating to such pattern or practice and requesting relief,177 |
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| 200 | 200 | | which may include injunctive relief, civil penalties, and any other appropriate relief.178 |
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| 201 | 201 | | (3) Nothing in this Code section prohibits:179 |
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| 202 | 202 | | (A) A person alleging a violation of this chapter from filing a civil action based on the180 |
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| 203 | 203 | | same facts as a civil action commenced by the Attorney General pursuant to this Code181 |
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| 204 | 204 | | section; or182 |
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| 205 | 205 | | (B) The Commissioner from sending a notice of complaint, unless otherwise barred183 |
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| 206 | 206 | | from doing so.184 |
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| 207 | 207 | | (b) In any civil action commenced pursuant to this Code section, the trier of fact may185 |
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| 208 | 208 | | impose a civil penalty of not more than $25,000.00 for a finding that a hiring party has186 |
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| 209 | 209 | | engaged in a pattern or practice of violations of this chapter. Any civil penalty so187 |
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| 210 | 210 | | recovered shall be paid into the general fund of the state treasury.188 |
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| 211 | 211 | | 34-11-10.189 |
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| 212 | 212 | | (a) Except as otherwise provided by law, any provision of a contract purporting to waive190 |
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| 213 | 213 | | rights under this chapter shall be void as against public policy.191 |
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| 214 | 214 | | S. B. 227 |
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| 215 | 215 | | - 8 - 25 LC 52 0661 |
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| 216 | 216 | | (b) The provisions of this chapter supplement and do not diminish or replace any other192 |
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| 217 | 217 | | basis of liability or requirement established by statute or common law.193 |
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| 218 | 218 | | (c) Failure to comply with the provisions of this chapter shall not render any contract194 |
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| 219 | 219 | | between a hiring party and a freelance worker void or voidable or otherwise impair any195 |
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| 220 | 220 | | obligation, claim, or right related to such contract or constitute a defense to any action or196 |
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| 221 | 221 | | proceeding to enforce, or for breach of, such contract.197 |
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| 222 | 222 | | 34-11-11.198 |
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| 223 | 223 | | The department shall conduct a public awareness outreach campaign, which shall include199 |
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| 224 | 224 | | making information available on its internet website, otherwise informing hiring parties of200 |
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| 225 | 225 | | the provisions of this chapter, and establishing a means for assistance by a natural person201 |
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| 226 | 226 | | through phone and email.202 |
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| 227 | 227 | | 34-11-12.203 |
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| 228 | 228 | | (a) No later than six months after the Commissioner sends to a freelance worker either a204 |
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| 229 | 229 | | hiring party's response and accompanying materials or a notice of nonresponse, the205 |
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| 230 | 230 | | Commissioner shall send the freelance worker a survey requesting additional information206 |
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| 231 | 231 | | about the resolution of the freelance worker's claims. Such survey shall ask whether or not207 |
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| 232 | 232 | | the freelance worker pursued any such claims in court or through an alternative dispute208 |
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| 233 | 233 | | resolution process and whether or not the hiring party ultimately paid any or all of the209 |
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| 234 | 234 | | compensation the freelance worker alleged was due or if the matter was resolved in a210 |
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| 235 | 235 | | different manner. Such survey shall state clearly that response to the survey is voluntary.211 |
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| 236 | 236 | | (b) The Commissioner shall collect and track information about complaints alleging212 |
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| 237 | 237 | | violations of this chapter. The information collected shall include, at minimum:213 |
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| 238 | 238 | | (1) The identity of the hiring party alleged to have violated this chapter;214 |
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| 239 | 239 | | (2) The freelance worker's occupation;215 |
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| 240 | 240 | | (3) The Code section of this chapter that was alleged to have been violated;216 |
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| 241 | 241 | | S. B. 227 |
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| 242 | 242 | | - 9 - 25 LC 52 0661 |
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| 243 | 243 | | (4) The value of the contract;217 |
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| 244 | 244 | | (5) The response or nonresponse from the hiring party; and218 |
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| 245 | 245 | | (6) Information from a completed survey identified in subsection (a) of this Code219 |
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| 246 | 246 | | section.220 |
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| 247 | 247 | | (c) One year after the effective date of this chapter, and every fifth year thereafter by221 |
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| 248 | 248 | | November first, the Commissioner shall submit to the legislature and publish on its internet222 |
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| 249 | 249 | | website a report regarding the effectiveness of the applicable provisions of this chapter at223 |
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| 250 | 250 | | improving freelance contracting and payment practices. Such report shall include, at a224 |
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| 251 | 251 | | minimum:225 |
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| 252 | 252 | | (1) The number of complaints the Commissioner has received pursuant to such226 |
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| 253 | 253 | | provisions;227 |
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| 254 | 254 | | (2) The value of the contracts disaggregated into ranges of $500.00 and by Code section228 |
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| 255 | 255 | | of this chapter alleged to have been violated;229 |
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| 256 | 256 | | (3) The numbers of responses and nonresponses received by the Commissioner230 |
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| 257 | 257 | | disaggregated by contract value into ranges of $500.00 and by Code section of this231 |
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| 258 | 258 | | chapter alleged to have been violated;232 |
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| 259 | 259 | | (4) The proportion of surveys received from freelance workers that indicate that they233 |
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| 260 | 260 | | pursued their claims in court and the proportion of surveys received from freelance234 |
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| 261 | 261 | | workers that indicate that they pursued their claims through an alternative dispute235 |
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| 262 | 262 | | resolution process and a summary of the outcomes of such cases; and236 |
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| 263 | 263 | | (5) Legislative recommendations, including consideration of whether certain occupations237 |
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| 264 | 264 | | should be exempted from the scope of the definition of freelance worker in this chapter.238 |
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| 265 | 265 | | 34-11-13.239 |
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| 266 | 266 | | The Commissioner shall promulgate rules and regulations necessary to implement the240 |
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| 267 | 267 | | provisions of this chapter."241 |
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| 268 | 268 | | S. B. 227 |
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| 269 | 269 | | - 10 - 25 LC 52 0661 |
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| 270 | 270 | | SECTION 2. |
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| 271 | 271 | | 242 |
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| 272 | 272 | | This Act shall become effective upon its approval by the Governor or upon its becoming law243 |
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| 273 | 273 | | without such approval, and shall apply to all contracts in this state entered into on or after244 |
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| 274 | 274 | | such date.245 |
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| 275 | 275 | | SECTION 3.246 |
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| 276 | 276 | | All laws and parts of laws in conflict with this Act are repealed.247 |
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| 277 | 277 | | S. B. 227 |
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| 278 | 278 | | - 11 - |
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