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May 4, 2010

Pay me for my work!

Posted: 11:35 AM ET

Clark Behind The Headlines

From HLN's Money Expert Clark Howard

It’s disturbing how many phone calls I get from people who work as independent contractors or freelancers and are not getting paid. They want to know what they can do about it. It is a terrible problem and a lot of companies treat their freelancers and independent contractors like dirt when it comes to being paid. The way this often plays out is if somebody doesn’t pay you, the only option truly available is to take them to small claims court. Now I understand that going to small claims means you will probably never work for them again, but do you want work for a company that doesn’t pay you?

I think there should be a website where independent contractors can rate how well or how poorly a company pays. Big companies decide how credit-worthy another company is by going to look at a Dun and Bradstreet report. But what about you as the person who’s working on your own, serving at the pleasure of this non-employer, and they stiff you? We need this for those working as freelancers. That’s how capitalism works. A need is met in the marketplace and your reward for it is money – a real paycheck!!

Another piece of advice: before you take a freelance job you should establish upfront how, when and how much you’ll be paid. And if you’re providing services to a small business that might be low on cash, you should establish a Paypal account to make it ultra easy for that business to pay you. The key is to get your money as quickly and efficiently as you can.

Filed under: Career • Clark Howard • Living


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Freelancers Unite to Get Paid « Cortera   May 5th, 2010 11:21 am ET

[...] BusinessWeek to Clark Howard at CNN all covering the same topic: Freelancers struggling to get paid. Clark Howard’s blog post yesterday hit the point [...]
Gilda   May 6th, 2010 1:42 pm ET

As the Internal Revenue Service is currently cracking down on misclassified "contract" or "freelance" employees (to cut down on what they, the employer, have to pay out in workers comp, social security, health benefits, etc), one has to be very careful and make sure their employer isn't just trying to skirt the law.
Kathleen Clement-Pulner   May 8th, 2010 10:14 pm ET

I worked as an artist for a PR firm in the Atlanta area, and stupidly I agreed to work for several months even though I knew they were in difficult straits. I was promised they would get me a check as soon as they were on solid ground again. I have not been paid.

Is my ONLY recourse to take this company to court? I really don't want to do this but I have called and called – sent registered letters. I just don't know what to do and I want my money! I am no longer freelancing – you have NO protection and are at the mercy of those who hire you!
Janet Snider   May 11th, 2010 6:53 am ET

WARNING! Don't be so fast to trust Paypal, especially when getting paid for services rather than tangible goods. Should a company decide months down the road to contest the charge to their credit card, Paypal WILL NOT help you - they will pull the funds from your checking account and leave you to straighten out the mess. It happened to me to the tune of $2,000 - I will never use Paypal for my service business again.
pnogueira   May 19th, 2010 11:27 am ET

Your only recourse is to go to court (possibly small claims, depending on how much money it is – this varies by state.) Clark’s advice on the front end is to spell out payment terms in writing before you start freelancing for a company.
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Clark Howard helps you become a wise consumer. We know you're busy, and that's why Clark's tips are quick and effective. He'll arm you with the information you need to make smart choices. During these tough economic times, Clark wants to help you save more, spend less and avoid getting ripped off!

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