How to handle late/mismanaged payments for freelance work

November 1, 2018 2:24 PM

I do freelance interpreting for a non-profit. Freelancers send in invoices and are supposed to get paid on the 15th of every month (for the previous month's hours). IN the last few months the checks are routinely late by about two weeks. There's no good explanation given. In the most recent paycheck, part of my payment was missing and when I asked I was told it would be in NEXT month's payment. The project managers handle the invoices and also give out interpreting assignments. I am afraid if I make a big stink by going to the director, the project managers won't continue to give me assignments. The work is very part time now because I am in school/internship full-time, but I like it, it keeps my skills fresh, and the extra money helps. Ideas on how to handle this?
posted by bearette to Work & Money (12 answers total)

Do you have a contract? Does it stipulate terms and fees and what happens when a payment is "late"?

Some organizations are great and pay immediately. I love them. Some companies like to Net-30, Net-60, Net-90 you and won't pay any sooner than that unless there is a fee for payment after a certain day. This is fine in my opinion for suppliers who are used to waiting on payment but is egregious for companies to do this to solo freelancers who typically can't float on Net-90 payments.

When you don't get paid, there should be a fee for late payment. But if you haven't agreed to that or it isn't in your contract then you might be stuck.

Why do you think that you are owed payment by the 15th of the month?
posted by amanda at 2:34 PM on November 1, 2018

I am afraid if I make a big stink by going to the director, the project managers won't continue to give me assignments.

It's possible. This says to me that you don't have leverage or feel that you don't.

The work is very part time now because I am in school/internship full-time, but I like it, it keeps my skills fresh, and the extra money helps. Ideas on how to handle this?

You could have a phone call with your contact there and just be open and honest. "Hi, so-and-so, I just wanted to check in with you on payments. I understand that you're going to be putting the balance of X invoice to the next payment but I wonder if there's anything else I should know. I would really appreciate payment in full by the 15th, could you tell me about expectations here or if something has changed? I'd really like to continue working with you guys!" Then don't talk and let them talk. Be friendly but also be prepared to take your services elsewhere or find another income stream.
posted by amanda at 2:37 PM on November 1, 2018 [1 favorite]

Isn't there some sort of accounts payable department/person? The one who actually processes and sends the check? If so, that's the person you need to sidle up to first. Ask them, sweetly, if there's something you can do differently in submitting your invoices - some extra bit of information they need, perhaps - that could get you paid more quickly, because it's hard to budget for things when you don't get paid on the 15th like you used to. It's possible that the project managers are slow in approving the invoices, I suppose, but this sounds more like there's some snafu in accounts payable. If the person complains to you about something beyond their control that is delaying your payments, ask them how you can help. As long as this person is on your side and helping you get what you want, the likelihood of somehow jeopardizing your good standing with the project managers is essentially nil.
posted by DrGail at 2:45 PM on November 1, 2018 [3 favorites]

Include a late fee clause on your invoices.
posted by DarlingBri at 2:45 PM on November 1, 2018 [1 favorite]

How is this nonprofit doing in terms of cash flow? I worked at a magazine, admittedly not a nonprofit, and I could tell that it was about to go belly up when payments to freelancers started taking longer and longer. I do not mean to alarm you unnecessarily, but you might want to poke around a bit to see if this place is financially stable in addition to the advice above. Good luck!
posted by Bella Donna at 2:51 PM on November 1, 2018 [4 favorites]

When a company did this to me in the past, I asked to negotiate a new contract where I was on prepaid retainer for a certain amount of hours per month. It helped that I was willing to walk away if they refused. They did agree to it, and the new arrangement worked...for about 3 months when they ran into further financial trouble and shrunk the retainer. My policy was to hold the line and refuse to do new work until paid ahead of time. I did stop working for them soon after because I could see the writing on the wall.
posted by oxisos at 3:07 PM on November 1, 2018 [2 favorites]

Response by poster: I've already tried to ask what's going on, and they tell me that it's "an issue with payroll." The reason I think that I should get paid on the 15th is because that's when I was told I would get paid and we get emails apologizing for "late payment."

My issue with last month is that money was missing that was supposed to be paid the month before, so it's already been two months. It was "only" about $100 that was missing but it would be nice for me to have.

It's very possible they are having cashflow problems, from other things I know. It's something I am mostly doing because I enjoy it and I rely elsewhere for (the bulk of my) income, but this affects my morale. And, the money is useful.

Just got an email that they will "try to get me an earlier check for the missing money" and that they are "not set up for direct deposit."

I'll look up the contract.
posted by bearette at 3:09 PM on November 1, 2018

Note that a standing expectation that you get paid on the 15th, coupled with their apology for being late, is evidence of a contract, even if you don't have a signed document saying you'll get paid on the 15th.

Start collecting paperwork/emails that verify that the expectation is "payment on the 15th," in case you need to go to court over it. Of course, taking them to court is almost certain to end your working relationship - most companies don't want to hire someone who's sued them. But if the delays get worse, you definitely want some verification of what they owe you.

And definitely start looking for new income streams, and if you can afford it, refuse to do new work for them until the existing work is paid for. ("That amount will be paid next month? Okay; please call me when that check is ready; I'll be available then. No, I'm sorry, I won't be available for the Johnson project until I've been paid for the work I've already done.")
posted by ErisLordFreedom at 3:31 PM on November 1, 2018 [1 favorite]

Yeah, the first place to look is in your contract. If it doesn't spell out things like when you're supposed to be paid, what the cutoff is before consequences arise, and what those consequences are for late payment, then you need a new contract. In construction, any contractor who's more than just a dude with a truck has their customers sign contracts that include these terms. Your situation is no different. If your contract doesn't specify, it's a garbage contract and you should figure out how you can revise it.
posted by Anticipation Of A New Lover's Arrival, The at 5:14 PM on November 1, 2018

Issue with payroll sounds like a bit of a red flag, but if you don't have contractual backing there is probably not much you can do other than start looking for other sources of side income. Freelancing is IME always sort of a gamble that you will get paid on time - unfortunately, unless it's a rare specialty or you are highly skilled, companies can usually look elsewhere for other contractors who can afford to wait for payment.

I do think you have a right to be put out by late payment, in this instance, but not necessarily to force the issue (not at least at risk of jeopardizing good will, as you said) if the company is making good-faith efforts to be upfront about it. That said I have re-hired writers who chased for payment multiple times - but not ones who were unpleasant or blame-placing about it. So that's sort of the line not to cross.
posted by ahundredjarsofsky at 8:41 PM on November 1, 2018 [2 favorites]

I have been running a business for the past 25 years. Some of my jobs are paying the bills and making sure we get paid.

Just got an email that they will "try to get me an earlier check for the missing money" and that they are "not set up for direct deposit."

This tells me that they are either having some cash flow issues, the payables person isn't competent, or both. If it's not too much trouble to look for another job, I'd be doing that. Decent organisations pay small contractors first.

For your immediate issue though and somewhat echoing ahundredjarsofsky, I'd say that the critical elements of dealing with people who owe you money are to be exceptionally nice and very persistent. Find out who does payables and ring them regularly, never being anything less than bright and positive. If possible, ask them to promise payment dates and follow them up without fail if they don't deliver. They will come to dread your calls more than whatever other problems they're facing and they will want to help because you're being really good about it. Only someone very nasty would see to it that you get less work because of it.

And, though it can be a difficult topic, especially with one's own work, try to keep in mind that it's your money. They contracted you to work and you've done the work. It's not a gift or a favour you're asking for.
posted by mewsic at 1:48 AM on November 2, 2018 [7 favorites]

I too would assume that they're having cash problems. You probably should think about the value of the work to you and assume that eventually you won't get paid for the last three months of your tenure, because it will get worse before they slide under the waves. Another thought is, "when these jack wagons disappear, will there be anyone that can verify that I did work for them?" That might be important if you decide they will look good enough on your resume that you're willing to take the risk of not being paid.
posted by Gilgamesh's Chauffeur at 6:31 AM on November 3, 2018