What Freelancers Go Through to Get Paid

In an ideal world, freelancers wouldn't have to fight to get paid. But this is far from an ideal world.

New York Times commentator Elizabeth Dwoskin describes this fight explicitly in her article "Begging for Your Pay," published yesterday. Read it here.

Damn It, Jim, I'm A Writer, Not a Debt Collector

Fighting to get paid, unfortunately, is familiar to every freelancer I have ever met. I have only freelanced off and on, with a few months doing it full-time. But when I did, I learned what I needed to know, and fast.

Here's what I learned. It's a rare company that pays a freelancer quickly. Most of them wait until the end date of your invoice before they even think about cutting you a check. In other words, if your invoice says Net 30 Days, you'll most likely be calling them on day 31, and several more times too, before you actually get paid.

Full-time freelancers, I applaud you. Personally, I could never make ends meet when I was constantly chasing after my invoices. It's hard to stay on top of your bills when you have no earthly clue when your paycheck is coming. I'd love to know how you do it, full-timers. Presumably you have excellent clients who pay quickly, a good lawyer, a fat savings account, a spouse as backup, an hourly rate so high that you can wait a while between checks, or all of the above.

The Battle Can Get Ugly

Some companies seem to feel like they can pay you whenever -- and in whatever amount(s) -- they feel like paying you, or not pay you at all. I took one company to small claims court because they decided they wanted to pay me a sum equal to one-fifth of our agreed-upon amount. Luckily, I had it in writing.

Basically, for freelancers, it comes down to this. To the company, you are not a person. You are a vendor. You are a faceless entity who delivers goods/services and sends invoices. Sure, somebody at the company knows you personally, perhaps has even met you face to face. That person may even care about whether you can pay your rent on time. But it's unlikely that that person works in Accounts Payable or has any sway over the people who do.

The whole thing reminds me of that documentary, The Corporation. Have you seen it? It explains how, in terms of behavior, corporations are psychopaths. In other words, they have no sympathy whatsoever. Which is why it's totally ineffective when freelancers beg and say things like, "I need to pay my bills." The company doesn't care. It only cares about not paying you if there will be consequences. Like getting taken to court.

It's not personal. It's not like the company hates you or wants your credit score to go down the toilet. It's just how companies behave toward vendors. I worked for one company whose accounting department routinely paid vendors' invoices very late, usually because it was waiting on money from its clients.

But Is It Legal?

No federal laws explicitly protect freelancers or provide guidelines for how frequently they should be paid. To the feds, you, the self-employed person, are not a person per se -- you are a business. Businesses don't have the same rights as people.

Some states do have protections. Dwoskin mentions a bill pending in Albany that would enable the cases of independent contractors to be investigated by the state Department of Labor. Organizations such as the Freelancers' Union advocate for more protections.

If you are starting out as a freelancer, I highly recommend researching the labor laws in your state. See what they have to say about freelancers, independent contractors, and self-employment. You may have more (or fewer) rights than you think.