Gig workers have rights you might not know. Whether you work as a freelance designer, writer, driver, or delivery person, understanding your legal rights is crucial because they directly impact your pay, benefits, taxes, and overall job security.
Misclassification of gig workers remains a critical issue, as being labeled incorrectly can prevent you from receiving minimum wage, overtime, or access to workers’ compensation. Additionally, tax reporting requirements are evolving, with changes to 1099-K thresholds affecting independent contractors and platform-based workers.
By knowing your rights and the protections available under federal, state, and local laws, you can ensure fair treatment, safeguard your income, and take steps to protect yourself from workplace risks or unfair practices.
Are You an Employee or an Independent Contractor?
Understanding whether you are an employee or an independent contractor is the first step to knowing your rights. The U.S. Department of Labor (DOL) uses a six-factor “economic reality” test to determine a worker’s status.
The test looks at the totality of the circumstances. That means no single factor decides the outcome. Instead, the goal is to determine whether you are economically dependent on the employer for work or truly in business for yourself.
Here are the six key factors the DOL considers:
- Opportunity for profit or loss: Can you make more money or lose money depending on how you manage your work, set your rates, or control your expenses?
- Investments by the worker and the employer: Have you invested in tools, equipment, or other resources to do your job, or does the company provide them?
- Degree of permanence of the work relationship: Is your work ongoing and long-term, or short-term and project-based?
- Nature and degree of control: Does the company set your schedule, supervise your work closely, or control how you perform tasks?
- Extent to which the work is integral to the employer’s business: Is your work a key part of what the company offers to its customers, or is it more peripheral?
- Skill and initiative. Does your work require specialized skills and independent judgment, or do you rely mostly on direction from the company?
Misclassification is common among gig economy workers, and it can have serious consequences. Red flags include tight schedules set by the company, being required to use employer tools, or having a role closely integrated into the business.
Misclassified workers may be entitled to minimum wage, overtime pay, and other benefits. New York workers can find helpful guidance from the New York State Workers’ Compensation Board.
Additionally, the National Labor Relations Board’s Atlanta Opera decision in 2023 clarified that more workers may qualify as “employees” for organizing and collective bargaining purposes. True independent contractors are excluded from these protections, but the ruling expands rights for many gig workers.
If you are not misclassified as a contractor, it’s essential that you know and understand independent contractor rights.
Pay & Hours For Freelancers
Understanding how you’re compensated is vital. Employees under the Fair Labor Standards Act (FLSA) are entitled to at least minimum wage and overtime pay. Independent contractors, however, are not automatically entitled to these protections unless misclassified.
In New York City, app-based delivery workers benefit from the Department of Consumer and Worker Protection’s (DCWP) minimum pay program. As of April 1, 2025, food delivery workers are entitled to a minimum pay rate of $21.44 per hour, before tips. The minimum NYC delivery worker pay is adjusted every April. This initiative aims to ensure fair compensation for workers in the gig economy.
Contracts & On-Time Payment
Freelance worker protections in New York are stated in the “Freelance Isn’t Free” Act. This law mandates that all contracts worth $800 or more over 120 days must be in writing and include at least the following:
- Work to be performed
- Payment amount
- Payment date
The New York State Department of Labor provides a model contract to assist freelancers in ensuring their agreements meet legal requirements.
Payment must be made on the due date specified on the contract or before. If there is no payment date specified on the contract, the hiring party has 30 days to pay after the job is finished. If a hiring party fails to pay on time, freelancers can file a complaint with the New York Attorney General’s office.
Anti-Discrimination & Harassment, Are You Protected?
The NYC Human Rights Law has extended anti-discrimination and harassment protections to independent contractors and freelancers, covering aspects such as race, gender, disability, and more.
Immigration status or language spoken is no excuse for discrimination or harassment. Even if you are an immigrant without proper documentation, you are protected by the anti-discrimination laws and the NYC Human Rights Law.
Safety, Injuries & Occupational Disease
Workplace safety is a significant concern for gig workers. Employees are typically covered by workers’ compensation for injuries sustained on the job. Independent contractors, however, are usually excluded unless misclassified.
The Occupational Safety and Health Administration (OSHA) offers whistleblower protections for workers who report unsafe working conditions. Workers can file complaints with OSHA if they face retaliation for reporting safety violations.
Occupational diseases, such as those resulting from long-term exposure to hazardous conditions, may be compensable if you’re legally classified as an employee or misclassified.
If you suffer an accident at work or an occupational disease, and you think you might be misclassified as a contractor instead of an employee, contact New York occupational disease lawyers to help you evaluate your options. You might have a right to workers’ compensation or to sue your employer.
Even if you are not misclassified, you might have the right to file a personal injury lawsuit. Contractors who were injured on the job due to a third party’s negligence can seek compensation. The compensation you can seek is not through workers’ compensation insurance but through a personal injury claim, where you will need to prove that the other party, the person who hired your services, another contractor, the building owner, etc, neglected their duty of care.
In NYC, the best personal injury lawyers can give you a free consultation to evaluate your case. Even if you are a contractor or a freelancer, you should not be exposed to known risks, and the people who hired you should follow all OSHA safety standards. Contact the NYC workplace illness attorneys who tirelessly work to protect all workers and contractors regardless of their immigration status.
Taxes & Paperwork
Gig workers often receive Form 1099-NEC for income earned from services provided. Gig worker laws 2025 state that third-party payment platforms may issue Form 1099-K if you receive over $2,500 in gross payments and conduct more than 200 transactions on a single platform within a year.
It’s essential to track your income and expenses meticulously. The IRS recommends reconciling your 1099-K with your own records, as gross payments reported may not reflect your taxable income.
Contractors and freelancers are not taxed on their income, but on their earnings. For example, if you are a delivery driver, you can count gas, car maintenance, and your phone as business expenses. You can deduct these expenses from what you receive as payments to pay less in taxes.
Your Right to Organize & Speak Up
As a gig worker in New York City, you have the right to speak up about your working conditions and even organize collectively; though the landscape is more complex when you’re classified as an independent contractor rather than an employee.
In New York City, the law also protects you from retaliation when you exercise your right to speak up or organize, even if you are a freelancer or independent contractor. For example, the Freelance Isn’t Free Act (FIFA) protects freelance workers, which would include many gig economy workers, from being penalized for asserting rights like timely payment or written contracts.
Gig economy workers in New York have already begun organizing. For example, the grassroots collective Los Deliveristas Unidos (LDU) brought together thousands of app-based delivery workers, many immigrants and many classified as independent contractors, to demand safer working conditions, greater transparency, and respect from the platforms they deliver for.
When to Talk to a Lawyer
Consulting with a lawyer is advisable if you suspect misclassification, experience withheld or late pay, face retaliation for safety complaints, or suffer discrimination or a work-related injury or illness. Legal professionals specializing in gig worker rights can provide guidance tailored to your situation. If you are classified as a gig worker and have suffered an accident or an illness at work, don’t hesitate to contact a legal team that specializes in both workers’ compensation and personal injury claims. Regardless of your immigration status or worker or contractor classification, you have rights.
Oliver Johnson is LawScroller’s Senior Legal Correspondent specializing in civil litigation, class actions, and consumer lawsuit coverage. He breaks down complex settlements and court decisions into clear, practical guidance for readers.