Collecting Unpaid Freelancer Wages in Wisconsin

November 12, 2014 11:22 AM

I completed freelance work for a company that I used to work for. It's been three months and I haven't been paid the roughly $900 that I'm owed. I have a signed contract and the deliverable has been received and acknowledged. What can I do to get paid?

Hi! You're not a lawyer, but I'm looking for some advice.

I did freelance work in August for a company that I left a year ago (on good terms). When I left, they mentioned possible freelance work opportunities down the line.

A former coworker (we'll call her Jane) reached out to me with a freelance opportunity for the company in August. I received and signed a contract with them, completed the work, and provided everything back to the company along with my billable hours. No issues; Jane was happy with the work and was hopeful I'd be able to do more in the future. She sent my invoice over to the Accounts Payable department.

After a month of not hearing anything regarding payment, I reached out to Jane. She found out that they needed a W4 from me. AP had begun working on it, initially associated me with a similarly named individual, then realized the problem. I sent it in within a day. Then...nothing.

It's been a total of three months now and I haven't been paid. Jane reached out to the AP department and hasn't heard anything back. I've reached out to AP via their email address multiple times and haven't heard anything back. Nothing at all; not even a "We're working on it."

I would like to get paid. What do I do?

*The unpaid wages total around $900.
*I work and live in Wisconsin where the company is located.
*The work was for a big company (10,000+ employees), so they're not unfamiliar with the process of paying freelancers.
*I'm 99% certain my issues have nothing to do with my former employment.
*The contract lists the hours and billable rates. It says payment upon publication of the material. The material has been published on the development version of their site. It's been acknowledged as received by Jane.

So...what are my options? Do I follow the instructions here and submit a formal complaint as detailed here? I'm not sure what applies to a freelancer and what doesn't. If anyone has any other ideas, I'm all ears. I mentioned to Jane that I was going to look into filing a claim and she even sent the AP department an email saying that I was looking into it to see if it would speed things up. Still nothing.

Thanks!

posted by HonorShadow to Work & Money (15 answers total)

Sometimes showing up in person clears things up really fast. Find out the name of the accounting department boss, call the admin, and set up a meeting. Or just show up and tell them you can wait until someone can meet with you.
It feels awkward but it will very likely work.
posted by littlewater at 11:26 AM on November 12, 2014 [4 favorites]

Best answer: Do you know the name of anyone in AP? Can you call them? If this is anything like AP where I work, it's almost certainly negligence rather than malice - someone has been out sick and this is "their" responsibility so no one else has picked it up, a file folder has gotten mislaid, their invoice routing system is hung up somewhere - a call to a live person is often useful. Also, a call to Jane's supervisor (or asking Jane to ask her supervisor to get involved) - not because Jane isn't doing what she can, but because AP might listen better to someone higher up.

How incredibly galling! It's always the big companies, right?
posted by Frowner at 11:29 AM on November 12, 2014 [3 favorites]

Ditch the email and get AP on the phone. A line I've used is, "I'm going to be near your office tomorrow. Can I pick up that check in person?" That tends to get action, fast.
posted by roger ackroyd at 11:35 AM on November 12, 2014 [6 favorites]

I agree with the in-person comments. When I was getting started freelancing, an old-time New York debt collector -- who used to do the type of tough-guy stuff Stallone is doing at the beginning of "Rocky" -- taught me to say, "forget sending the check, I'm going to be there in person to pick it up, so please have it available." It works.
posted by johngoren at 11:44 AM on November 12, 2014 [2 favorites]

Have you tried to call or go in person and speak to someone? Sending an email to an address that isn't owned by an individual person and then going straight to a formal complaint after no response seems a little ridiculous. That formal complaint will take longer and be more work than going there and handling it. Just talk to an actual human being yourself. And for your records, get that person's email address and send them a confirmation of your conversation afterward with the next steps you had discussed, if you're worried.
posted by AppleTurnover at 11:48 AM on November 12, 2014

There's a general rule in freelancing that you don't hand over the final product without payment in full. Fuel for the future I guess.
posted by rhizome at 11:49 AM on November 12, 2014

Best answer: I'm heartily seconding Frowner's note above - it's neglect/incompetence, not malice. For a big, established company, the likelihood is that they're not stiffing you.

I have a big, international client and I've gotten checks 5 months after invoicing. It could be any of the following problems (they've all happened to me!):

- Invoice hasn't even been processed, even though they say it has
- Check has been cut, but not mailed
- Check mailed to wrong address

If I were you, I would:

1. Wait 2 more weeks. I know it's hard, but it may turn up
2. If you don't have a contact in AP - Email Jane and check in again, saying so sorry to bother her (since the delay is not on her end), but you don't have a record of receiving payment. Could she give you a contact in AP that you can follow up with yourself to save her the bother? If she's not able to get you that information, do you have any other contacts at the company who could?
3. If you do have a contact in AP - Call or email 1 person directly. General AP alias will not work as well. Then keep calling/emailing every couple days, politely requesting updates.

Continue to be polite but firm as again this is probably not them actively trying to screw you over.
posted by Uncle Glendinning at 11:53 AM on November 12, 2014

If you can't give them a call, re-send an invoice, along with a 90-day late fee added on as a separate line. That should get their attention.
posted by juniperesque at 11:57 AM on November 12, 2014 [1 favorite]

Response by poster: We have some winners with an overwhelming suggestion of trying to get an actual person on the phone. I don't know anyone specifically in that department but I'll call the main line and see if I can get transferred over to someone in the department. If not, I'll see if someone I know over there can give me a direct name/number to reach out to.

While sure to move the ball forward, I'm leery of just showing up relatively unannounced to their office as a former employee. They've had some recent security incidents that started off like that so they're already a bit on edge. I would like to announce to them that I'd like to show up in person to collect payment, but...well, no one is acknowledging my contact except for Jane and she works from another state.

I definitely don't mean to imply this is malicious action. I don't think it is whatsoever. I've heard from friends at the company that they have had issues billing customers and paying invoices. Let's face it: if they can't even bill customers in a timely manner right now, then this is probably way, way down the priority list for them. I've also heard they are very understaffed (which wouldn't be surprising based on my past experiences). So, I've been courteous in all my emails (even jovial!)

Just to explain why I suggested a formal complaint (which may seem a bit harsh): I've been in contact with Jane regarding this issue just about every week over the last two months. I've sent several emails to the AP department directly and hadn't even received a "We got your email" response. So given that and the length of time, I figured my good will was getting close to an end. But you all are absolutely right that doing so will just prolong this process. So I'll keep exhausting my options before doing so first!

Thanks -- I'll update once I try a few other avenues!
posted by HonorShadow at 12:02 PM on November 12, 2014

She found out that they needed a W4 from me.

Are you sure they requested a W-4 and not a W-9? W-9 is the form for freelancers; W-4 is for employees. Which did they request and which did you send?

You should also be sending invoices every 30 days reflecting the past-due balance.
posted by melissasaurus at 12:07 PM on November 12, 2014 [1 favorite]

Also, some companies just have a policy of paying net-90 or even net-120, unless requested otherwise.
posted by melissasaurus at 12:08 PM on November 12, 2014

Response by poster: Whoops, you are correct melissasaurus: I meant a W-9.

And true, it may be Net-90 payment but they've not communicated that to me via the contract or other communications. Net-90 (even Net-120) is perfectly fine, but I'd like a reply from them at least letting me know that "We pay Net 90/120 and we'll make sure to pay you by this date."

My concern is that if I don't at least get some communication from them, then I won't get a check until six, seven months from now - - if at all.
posted by HonorShadow at 12:17 PM on November 12, 2014

I work for a big company and on occasion process invoices. You need to get Jane to find an actual person in AP to talk to. Depending on how this company is organized AP may not even be in Wisconsin so going in person is not what I'd recommend. Net 120 is our standard terms and it is always in the contract. Have you checked yours to see if it has payment terms? There may even be a contact name there (our contacts have that).
posted by sulaine at 2:55 AM on November 13, 2014

Be businesslike. Stop going through Jane; get the name of the supervisor in AP, or in Accounting. Send a monthly statement. Start including late fees. Make sure the monthly statement and any correspondence, includes your name, address, phone, fax, and email. Also, net 90 or longer is incredible to me, but I'm not in your industry. next contract, put in payment terms and late payment charges.

Honorshadow Creative Enterprises
123 Groove Street
Tiedyetown, ME 04444
207-775-4321
207-775-4322(fax)

STATEMENT 11/13/2014


invoice #22 8/12/2014 PO# xyz-123 Contract dated 7/22/2014 $900.00
This invoice is 90 days past due, and is subject to a late fee of 10% per month.
late fee 90.00




Amount due $990.00

Your prompt attention to this mater is appreciated. Jane Moe, Honorshadow Creative Enterprises
posted by theora55 at 11:04 AM on November 13, 2014

Send another statement 12/13/2014, and call them. At some point, let them know you'll be going to small claims court and seeking legal fees.
posted by theora55 at 11:06 AM on November 13, 2014