SB 227: Labor and Industrial Relations; protections for freelance workers; provide

Georgia currently has no specific law governing contracts between freelance workers and the businesses or people who hire them. This bill would add a new chapter to Georgia's labor code creating the 'Freelance Isn't Free Act.' It defines a freelance worker as a person (or one-person business) hired to provide services worth $800 or more, excluding sales representatives, licensed legal or medical professionals, and construction contractors. The bill requires hiring parties to put freelance agreements in writing, pay freelancers on time (within 30 days if the contract does not specify a date), and refrain from retaliating against freelancers who assert their rights. It sets up a complaint process through the Commissioner of Labor, allows freelancers to sue for damages including double damages and attorneys' fees, and lets the Attorney General pursue civil penalties up to $25,000 against hiring parties with a pattern of violations. The Department of Labor must run public outreach, survey complainants, and report data to the legislature every five years. The law would take effect once signed by the Governor and would apply to contracts entered into on or after that date.

• Requires hiring parties to give freelance workers a written contract covering pay rate, services, payment date, and reporting deadlines.
• Requires payment to freelancers within 30 days of completed work if the contract does not set a payment date, and bars reducing pay after work has started.
• Prohibits hiring parties from retaliating against freelancers who assert their rights under the new law.
• Creates a complaint process at the Department of Labor, including document requests, notice to hiring parties, and confidentiality protections for freelancers under investigation.
• Allows freelancers to sue for statutory damages, double damages, and attorneys' fees, and lets the Attorney General seek civil penalties up to $25,000 for repeated violations.
• Requires the Department of Labor to run public outreach, survey complainants, track complaint data, and report results to the legislature every five years.

Freelance workers in Georgia who earn $800 or more from a single hiring party within 120 days, and the businesses or individuals who hire them. Sales representatives, licensed legal and medical professionals, and construction contractors are excluded. The Commissioner of Labor, the Department of Labor, and the Attorney General also gain new duties under the bill.

Freelancers who currently have no written contract or face late payment would gain a formal way to document work terms and demand timely pay, backed by lawsuits, penalties, and a state complaint process. Hiring parties would face new recordkeeping duties, payment deadlines, and potential financial penalties for noncompliance.

• Section 1 creates O.C.G.A. Chapter 34-11 titled the 'Freelance isn't Free Act' and defines 'freelance worker,' 'hiring party,' and related terms, excluding certain professionals and government entities.
• Code Section 34-11-3 requires a written contract with specific terms and requires hiring parties to keep contracts for at least six years, with noncompliance creating a presumption favoring the freelancer's version of terms.
• Code Section 34-11-4 sets payment deadlines, generally within 30 days of completed work if not otherwise specified, and bars reducing pay after work begins.
• Code Section 34-11-5 prohibits retaliation against freelancers who exercise rights under the chapter.
• Code Sections 34-11-6 and 34-11-7 establish a complaint and information-facilitation process through the Commissioner of Labor, including 20-day response deadlines for hiring parties.
• Code Section 34-11-8 allows civil lawsuits with damages including $250 statutory damages for contract violations, double damages for late payment, and attorneys' fees; sets two- and six-year statutes of limitations.
• Code Section 34-11-9 authorizes the Attorney General to sue hiring parties showing a pattern of violations, with civil penalties up to $25,000 paid into the state treasury.
• Code Sections 34-11-11 through 34-11-13 require public outreach, complainant surveys, data tracking, a five-year legislative report, and rulemaking by the Commissioner.

1. 2025-02-21Senate Read and Referred (Senate)
2. 2025-02-20Senate Hopper (Senate)

• Josh McLaurin (D, SD-014)Primary sponsor

• freelance workers
• labor law
• contract requirements
• worker protections
• Department of Labor