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Posts Tagged ‘workign for yourself’

Freelancers Now Free To Go Broke — Late Payers Worse Than Ever

In business, Media on April 28, 2010 at 8:03 am

The freelance life — no cubicle, no boss, no schedule — can look so alluring. It increasingly means no income, reports The Wall Street Journal:

About 40% of freelancers had trouble getting paid in 2009, according to a survey released in mid-April by the New York-based Freelancers Union, a 135,000-member organization for independent contractors across the country in fields such as media, technology, and advertising. It was the first year the group asked the question on its member survey. And more than three out of four freelancers said they’ve had trouble getting paid over the course of their careers, according to organization.

The problem could become more acute as independent contractors emerge as a more central piece of the work force. The financial crisis and the resulting high unemployment thrust many professionals into the ranks of freelance workers, which may continue to grow despite signs of an economic recovery.

Littler Mendelson, a San Francisco-based employment law firm with 49 offices nationwide, predicts that in 2010 half of previously eliminated positions filled will be filled by contingent workers—such as independent contractors, freelancers, and temp workers—accounting for as much as 25% of the work force nationwide— based on client interviews and a survey conducted by a staffing analysis firm.

Since independent contractors aren’t covered by most federal employment laws, they don’t enjoy the same legal protections on wages as permanent employees, says a spokesman for the Department of Labor. If a permanent employee doesn’t get paid, federal or state labor departments can fine companies and even prosecute company executives. But independent contractors often have to turn to the court system, in most cases small claims, if they go unpaid.

I wrote about this trend for The New York Times last year — after two publications did their level best to screw me out of almost $7,000 I’d earned. One owed me $5,600 and sent me emails telling me of their financial troubles. Like I care. If I can run my business efficiently, so can you. I found a contingency lawyer, sued and won half (the lawyer, sad to say, took a third of that.) I hired another lawyer — a softball buddy who helped out for two bottles of Stoli — whose letter to the other deadbeat produced payment within two days of his letter, after months of nyah-nyahing and stonewalling.

These losers always manage to pay for everything else — their office space, heat, light and gas for their vehicles.

Freelancers? Feh, they can wait.

No we can’t — not with credit lines restricted and credit card APRs now shooting through the roof. My bank is charging me $10 every time I use my overdraft protection (line of credit) — this in addition to the usurious interest rate they charge on the balance and cutting my line of credit from $20,000 to $15,000 — because…they can.

If someone isn’t paying you, sue their ass. Don’t “be nice.” You don’t want to burn every  bridge, but some look much better in flames. If a client is screwing you and smiling, why would you want them anyway?

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