Freelancers Fight to Be Paid
Emily, one of our expert writers, shared her frustration with a client who initiated a project, provided little direction, “went dark” for six weeks, and finally resurfaced telling her they went another direction and didn’t need her completed research and writing work after all. She billed them for 50 percent of the project and knows it will not be easy to collect.
The Wall Street Journal describes a real crisis for millions of freelancers in this country. Nearly half of all independent sole proprietors struggle to get paid by clients. Even projects that have been approved for payment.
What follows is an excerpt of their article, “Freelancers Fight to Be Paid.”
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 over the course of their career, 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.
To some, small-claims court can be more trouble than it’s worth, says Sara Horowitz, executive director of the Freelancers Union. Depending on the state, it will cost about $50 to file a claim and it can take months for a case to be heard. Even if a freelancer wins, small-claims judgments must be collected by the plaintiff.
Read the entire article here.
