Broad Definition of “Hiring Party” Under FIFA Strengthens Workers’ Wage Rights

Workers fighting for fair pay scored an important win when a federal judge ruled that Consolidated Edison (ConEd) can be held accountable as a “hiring party” under New York City’s Freelance Isn’t Free Act (FIFA) in Ortiz v. Consol. Edison Co. of N.Y., Inc., No. 1:22-cv-08957 (JLR) (GS) (S.D.N.Y. Sept. 24, 2025). This ruling establishes a broad scope for those who can be sued under the law, making it clear that large companies can’t escape responsibility for freelance workers’ wages just by using subcontractors or middlemen.

The case was brought by a group of flaggers and spotters—workers who secured jobsites and directed traffic at ConEd projects in New York City and Westchester. These workers routinely worked long hours, often 40–80 hours a week, and were paid on 1099 forms as “independent contractors.” They allege they were misclassified to avoid overtime and wage protections, and even if they were freelancers they would have protections under FIFA. ConEd tried to get the FIFA claims thrown out, arguing that it wasn’t technically the one who “hired” them.

Judge Jennifer Rochon rejected that argument. She found that it was plausibly alleged ConEd retained these workers’ services, controlled their schedules, set their pay rates with subcontractors, and had supervisors physically present on jobsites. Even if subcontractors handled the paperwork, ConEd was the entity benefiting from and directing the workers’ labor. That was enough to make ConEd a “hiring party” under FIFA.

This matters because FIFA was passed to protect freelancers from nonpayment and late payment, and it defines a “hiring party” broadly as anyone who “retains” a freelancer’s services. The court agreed with the plaintiffs that “retain” cannot mean only “hire.” If it did, companies could insulate themselves by outsourcing hiring to subcontractors while still reaping the benefit of workers’ labor. The judge emphasized that such a narrow reading would defeat the very purpose of FIFA and leave workers unprotected.

For workers, this is a big deal. Whether you are misclassified as an independent contractor or actually working freelance, you still potentially have rights to payment and legal remedies if those rights are violated. This decision shows that even large companies can’t wash their hands of responsibility by pushing hiring off to others. If you’ve been denied pay, paid late, or misclassified while working for a large company through a subcontractor, you may have a strong claim under FIFA or other wage laws and should speak with an employment attorney promptly to explore your options.