New York uses a multi-factor test to classify gig workers as employees or independent contractors, focusing on control, independence, and economic reality. The Freelance Isn’t Free Act provides protections for NYC freelancers regardless of classification, requiring contracts for jobs over $800. Misclassification risks back wages and penalties for platforms like Uber or DoorDash.
Classification Factors
New York courts and the Department of Labor apply a common-law test weighing factors like the employer’s control over work methods, worker’s investment in equipment, opportunity for profit/loss, and permanency of the relationship. For wage/hour claims under NY Labor Law, the “economic reality” test considers similar elements plus integration into the business. App-based drivers often qualify as employees if platforms dictate schedules, rates, and standards, though many settle as contractors under specific rules.
Freelance Protections
NYC’s Freelance Isn’t Free Act mandates written contracts specifying services, pay rates, and timelines for work valued at $800+ or over 120 days with one client. It ensures timely payments (within 30 days) and prohibits retaliation for complaints, with double damages for violations. Statewide, gig workers may access unemployment if reclassified, but health benefits and overtime typically require employee status.
Platform-Specific Rules
Uber/Lyft drivers in NYC earn minimum pay via Taxi & Limousine Commission rules, blending employee-like protections with contractor flexibility. DoorDash/Grubhub face lawsuits over tips and expenses, often resolved via settlements favoring partial employee rights. Federal DOL rules reinforce economic dependence for FLSA coverage, influencing NY cases.
SOURCES
[1](https://www.bkllawyers.com/blog/2025/september/navigating-labor-law-violations-in-the-gig-econo/)
[2](https://centralnylaw.com/the-gig-economy-worker-classification-employment-law/)
[3](https://www.fisherphillips.com/en/news-insights/new-congressional-bill-hybrid-job-classification-gig-workers.html)
[4](https://www.hinshawlaw.com/en/insights/blogs/employment-law-observer/the-gig-is-up-dol-proposes-rule-that-would-classify-more-independent-contractors-as-employees)
[5](https://www.statechambers.org/worker-classification)
