On November 22, 2023 Governor Hochul signed Bill A06040 into law thereby creating Labor Law 191-d, the "freelance isn't free act." 

This law will replicate, in large part, the labor rights of freelance workers in NYC throughout state. The Governor's statement on the Bill can be found here. 

This new law defines which Freelance Workers are protected and then requires that Hiring Parties provide timely payments, a right to a written contract with specific terms, a private right action for violations, a right to no retaliation, a public awareness outreach campaign, a reporting requirement and more. In lawsuits buy Freelance Workers, freelancers who are denied rights can claim liquidated damages plus attorneys fees. 

NYS DOL will provide model contracts as well as a non-judicial, administrative process for resolving disputes between Hiring Parties and Freelance Workers.

The goal of this new law is to ensure that all laborers get the right to fair and timely pay. 

Starting on October 12, 2021, discrimination cases before the New York State Division of Human Rights (DHR) are no longer permitted to conclude with a private settlement. 

Instead, if settlement is achieved, DHR is now requiring "complainant’s attorney [] to state in writing why they are seeking a discontinuance and, if the reason is private settlement, the discontinuance will not be granted." Rather, "the matter [will be resolved] through an Order after stipulation that indicates the terms of the settlement or to proceed through the agency’s public hearing process." 

The purpose of this new rule, according to DHR, is "to ensure that the terms of any settlement comply with our basic standards and do not violate public policy."

Further, given that three-quarters of discrimination cases result in settlement, DHR will be able to collect better data of what is happening in resolving these disputes by monitoring settlements. Hopefully, DHR will actively compile this data and inform the public of their findings so that litigants can make smart, informed decisions, when settling cases into the future. 

1. The lease expressly provides that:
• the dwelling unit is registered as a seasonal use dwelling unit, indicating the local or county government agency with which it is registered;
• the occupancy is only for seasonal use and does not exceed 120 days or a shorter period provided by the lease; and
• the tenant has a primary residence to return to and such address must be expressly stated on the lease.
2. The dwelling unit is registered with the appropriate local government, county, or state registry as a seasonal use dwelling; and
3. The dwelling unit is not rented as a seasonal use dwelling unit for more than 120 days during each calendar year.

On June 10, 2021, the New York State Legislature passed Assembly Bill A350 / Senate Bill S5105C (“Bill”) which set forth exemptions for cooperative housing corporations (co-ops) in relation to their tenants who are unit owners, purchasers, or shareholders. Once signed by the Governor, the Bill takes effect immediately.

While unit owners, purchasers, or shareholders of co-op units are generally considered “tenants” under their respective proprietary leases or occupancy agreements, if the bill becomes law, co-ops will be exempted from the usual landlord-tenant requirements and prohibitions set forth below:

• Security Deposit or Advance (GOL §7-108): A co-op will be allowed to collect more than one month’s rent for a deposit or advance from tenants who are unit owners, purchasers, or shareholders of owner-occupied units;
• Notice of Non-Renewal or Notice of Rent Increase (RPL §226-c): A co-op is no longer required to provide the RPL §226-c Notice of Non-Renewal or Notice of Rent Increase to tenants who are unit owners or shareholders of the co-op;
• Application Fees (RPL §238-a): A co-op may demand any payment, fee, or charge necessary to compensate a managing agent and/or transfer agent for processing, reviewing, or accepting a tenant’s application where such tenant would become prospective unit owner or shareholder;
• Credit and Background Check Fees (RPL §238-a): A co-op may charge more than $20, but such fees should not exceed the actual cost;
• Monthly Maintenance Fees for Late Payments (RPL §238-a): A co-op may charge up to 8% of the monthly maintenance fee for the late payment of such fee if provided for in the proprietary lease or occupancy agreement;
• “Rent” in a Summary Proceeding (RPL §702): A co-op may demand more than the rent in a summary proceeding against a unit owner or shareholder provided that the proprietary lease or occupancy agreement allows for the recovery of other fees, charges, penalties or assessments in a summary proceeding;
•  5-Day Notice of Non-Payment (RPL §235-e(d)): A co-op may provide another method of sending notice by mail other than certified mail as long as it is set forth in the proprietary lease or occupancy agreement; and
• Attorneys’ Fees upon a Default Judgment (RPL §234(2)): A co-op may be awarded attorney’s fees in the event of default judgment against a unit owner or shareholder if the recovery of such fees are set forth in the proprietary lease or occupancy agreement.

Essentially, the Bill aims to correct the unintended effects of the Housing Stability and Tenant Protection Act of 2019 towards unit owners or shareholders of co-ops who are “tenants” only because of their proprietary leases or occupancy agreements.

Do you agree with the Legislature’s corrections? Is it too little, too late?

For pending litigation, it sure seems that this new law affirms that co-ops that previously breached the Housing Stability & Tenant Protection Act as applicable to tenants, are liable, no?

• The Act applies to summary proceedings or any other judicial or administrative proceeding to recover possession of a commercial unit, including evictions and ejectment actions.
• The Act only applies to a commercial tenant who:
• is a resident of New York State;
• is independently owned and operated;
• is not dominant in its field; and
• employs fifty or fewer persons.

• The Act requires the Court or the landlord (depending on the status of the eviction proceeding) to provide the tenant with the Hardship Declaration in English and in the language of the lease / tenancy agreement.
• The tenant should complete the Hardship Declaration if the tenant is suffering a financial hardship and is unable to pay rent or other financial obligations or obtain alternative suitable commercial property because of:
• significant loss of revenue;
• significant increase in necessary expenses related to providing protective equipment to prevent transmission of COVID-19; or
• moving expenses and difficulty securing alternative commercial property.

• If there is no pending proceeding and a tenant provides a Hardship Declaration to the landlord, the landlord is prohibited from commencing any proceeding until May 1, 2021.
• If the tenant does not provide a Hardship Declaration, the landlord is required to file and serve the following to commence an action:
• affidavit of service of the Hardship Declaration in English and the language of the commercial lease / tenancy agreement;
• affidavit of service of predicate notices required by law and the lease;
• affidavit of the landlord / landlord’s agent attesting to the following:
• Landlord / his agent did not receive a Hardship Declaration from the Tenant; or
• The tenant returned the Hardship Declaration but the tenant is “persistently and unreasonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others, with a specific description of the behavior alleged.”
• If the Court determines that the landlord failed to provide the Hardship Declaration to the tenant, the Court shall stay the proceedings for at least 10 business days to allow the tenant to complete the Hardship Declaration.

• Refers to proceedings commenced on or before March 7, 2020 and commenced within 30 days of March 10, 2021.
• Stayed for at least 60 days, or to such later date the Court deems necessary to provide tenants time to complete and submit the hardship declaration.
• Court shall issue stay and mail copy of the Hardship Declaration to the tenant.
• If the tenant provides a completed Hardship Declaration to the Court or landlord, the matter is stayed until May 1, 2021.

• In any proceeding in which an eviction warrant has already been issued, execution is stayed until the court holds a status conference with the parties.
• If the tenant provides a Hardship Declaration, the execution of the warrant is stayed until May 1, 2021.
• For the sheriff to execute the warrant of eviction, it must now state:
• The tenant has not submitted a Hardship Declaration and the tenant was properly served with a copy of the Hardship Declaration, listing dates of service by the petitioner and the court; or
• The tenant is ineligible for a stay under this act because the court determined that the tenant is persistently and unreasonably engaging in behavior that infringes on the use and enjoyment of other tenants/occupants or causes a safety hazard to others with a specific description of the behavior.

• The Act applies to owners or mortgagors of commercial properties who:
• owns 10 or fewer commercial units (directly or indirectly; units may be in more than 1 property or building as long as total units are occupied or available for rent);
• is a business that is a resident in New York State;
• is independently owned and operated;
• is not dominant in its field; and
• employs 50 or fewer persons.
• The Act does not apply to mortgage loans backed by a state corporate governmental agency.

• The Act requires the Court or the foreclosing party (depending on the status of the foreclosure proceeding) to provide the borrower with a statement of protections available under the Act in 14-point type (“Hardship Declaration”).
• More importantly, the borrower must complete the Hardship Declaration and provide it to the foreclosing party to be afforded relief under the Act, if the borrower is suffering a financial hardship including, but not limited to:
• a significant loss of revenue;
• a significant increase in necessary expenses related to providing protective equipment to prevent transmission of COVID-19;
• moving expenses and difficulty securing alternative property; or
• a commercial tenants’ default on a significant amount of rent since March 1, 2020,
• The borrower’s submission of the Hardship Declaration is a rebuttable presumption of a financial hardship for purposes of establishing a defense.

• If the borrower provides a Hardship Declaration to the foreclosing party/foreclosing party’s agent, the foreclosing party is prohibited from commencing any foreclosure proceeding until May 1, 2021.
• If the borrower does not provide a hardship affidavit, the lender is required to file the following to commence a foreclosure proceeding:
• affidavit of service of the Hardship Declaration in; and
• affidavit of the foreclosing party / foreclosing party’s agent attesting that the foreclosing party or his agent did not receive a Hardship Declaration from the Borrower.
• If the Court determines that the foreclosing party failed to provide the Hardship Declaration to the borrower, the court shall stay the foreclosure for at least 10 days to allow the borrower to complete the Hardship Declaration.

• Refers to proceedings commenced before March 7, 2020 or commenced within 30 days of March 10, 2021.
• Stayed for at least 60 days to May 9, 2021, or to such later date the Court deems necessary to provide borrower time to complete and submit the hardship declaration.
• Court shall issue stay and mail copy of the Hardship Declaration to the borrower.
• If the borrower provides a completed Hardship Declaration to the court or lender, the foreclosure proceedings are stayed until May 1, 2021.

Post-Judgment

• In any foreclosure proceeding in which a judgment of sale has already been issued, execution is stayed until the court holds a status conference with the parties.
• If the borrower provides a Hardship Declaration, the execution of the warrant is stayed until May 1, 2021.

1. Commencing a commercial eviction proceeding against any commercial tenant for the nonpayment of rent;
2. Commencing a foreclosure of any commercial mortgage for nonpayment of such mortgage; and
3. Enforcing of such eviction or foreclosure.

• Residential evictions may now be commenced but courts are prohibited from awarding warrants of eviction and judgments of possession for tenants experiencing financial hardship for non-payment of rent that accrues or becomes due during the COVID-19 period pursuant to the Tenant Safe Harbor Act. Money judgments may be awarded. For more information, read our blog HERE;
• Residential foreclosure proceedings based on nonpayment due to COVID-19 are prohibited until August 20, 2020 pursuant to Executive Order 202.28;
• Commercial foreclosure proceedings based on nonpayment due to COVID-19 are prohibited until August 5, 2020 pursuant to Executive Order 202.48;
• Commercial evictions based on nonpayment are prohibited until August 5, 2020 pursuant to Executive Order 202.48; and
• Commercial holdover proceedings may be commenced beginning June 21, 2020 pursuant to Executive Order 202.8.

1. Tenant’s or lawful occupant’s income prior to the COVID-19 period;
2. Tenant’s or lawful occupant’s income during the COVID-19 period;
3. Tenant's or lawful occupant's liquid assets; and
4. Tenant’s or lawful occupant's eligibility for and receipt of cash assistance, supplemental nutrition assistance program, supplemental security income, the New York State disability program, the home energy assistance program, or unemployment insurance or benefits under state or federal law.

• Requirement of filing an offering statement or prospective within 15 months of date of issue of the letter from the attorney general stating that the offering statement or prospectus has been accepted for filing is tolled until May 16, 2020 (see Section 352-eeee(2)(a) of the General Business Law);

• Filing fees required at the time of submission and filing of each offering statement or prospectus also suspended until May 16, 2020 but payment must still be made to the department of law by August 14, 2020 (see Section 352-e(7)(a) of the General Business Law);

• Requirement of Sponsor’s preparation of a budget for the first year of condominium operation is tolled until May 16, 2020. However, the Sponsor must update the first year of operation, as necessary, within 30 days from expiration of Executive Order. The Sponsor shall not be required to offer rescission, to the extent the first year’s budget for operation does not increase by 25% or more during the pendency of the state of disaster emergency (see 13 NYCRR §§ 18.3(g)(1), 20.3(h)(1), 23.3(h)(1)); and

• Rule requiring a sponsor to offer rescission if the first closing of a unit does not occur within first year of operation is tolled until May 16, 2020, but the sponsor must update the first year of operation, as necessary, by June 15, 2020 (see 13 NYCRR § 20.3(o)(12)).