We need a law like this in Canada. Hey, isn’t FreshBooks a Canadian company? Maybe advocating on behalf of Canadian Freelancers in support of such a bill to be created in Canada is something that they could be apart of?

I love Freshbooks, but have to disagree with this. Too many laws now aren’t being enforced, only creating more bureaucrats and costs. I have been freelancing a while, and my ghost writing is billed in advance, then delivered.

Taking responsibility for your own policies and enforcing them, even if you lose a potential customer once and a while is the way to go. And, if you lose one because you’re making sure you get paid, then maybe it was exactly the one who wouldn’t have paid you.

I agree with Jim, no one forces you to do work on spec, it is a perfectly legit way to try and get business for those who wish to. For those that don’t, simple, don’t.

Choosing a prospecting method, which spec work is, has no correlation to getting paid on time from clients. Sorry Freshbooks, you have a great product which has improved our cashflow and billing, however really mind your own business and let others mind theirs.

Freedom of choice not more useless and unenforceable legislation.

In the industry I am in (health care research and consulting), I am often competing for projects against larger companies, and/or subcontracting for parts of projects. It’s not realistic to expect that the independent worker will be able to set the terms in all these cases, where the industry standard is often payment on project completion. I have been fortunate to have good clients who have rarely been late and never shafted me entirely, but I support what freelancers union is doing. Apparently it’s all too common that “the little guy” gets paid last or not at all, and trying to enforce contracts, even if you have them in place, can be prohibitively expensive for small business.

You can not protect the stupid or naive from themselves.

This is very simple, have a contract that details when and how you get paid. Take stage payments, do not release work until completely paid, and numerous other common sense ways to run things.

If you insist on being stupid then you will get burned! Live with it learn from it and move on. If it keeps happening perhaps you should ask yourself if you are really cut out to run a business in the first place.

Anyway the cost of an litigation is usually prohibitive, especially when dealing with large companies, they will simply use there weight to break you in legal wrangling costs, remember the law plays no favourites, and is rarely “fair” it is simply the law. You really have no cast iron guarantee of winning even if you think you have.

This really should be a no-brainer.

Note: we own a trademark, to enforce it wold cost £10,000 per case, which is prohibitive, so again what value is legislation when it is unenforceable through cost or any other means?

Unfortunately this is a VERY common problem and I have heard every excuse in the book and then some. Too many businesses don’t honor their commitments.
As of January 1st, 2012 I require all payments upfront. I know, I know, I know… Frankly, I’d rather sit a the beach and slurp a frozen Margarita before I spend the time working for someone who then doesn’t pay, which means me chasing down the deadbeats. My time is too valuable for that!

So am I the only one who read the title as “Get Paid, Not Laid”?

Great Infographic – I didn’t take into consideration the ripple effects of letting clients get lazy on payments!

Hey George!

We didn’t remove your comment. Its still alive and well on the other post about spec work. http://www.freshbooks.com/blog/2011/01/13/say-no-to-spec-work/

s!

lol…thanks Saul. yes, it’s there. Too many tabs open in my browser

In California, all hourly labor must be paid for (bid contracts are different). Even the excuse “it wasn’t good enough” doesn’t absolve the client of paying the hourly rate. Disputes can go to Small Claims Court which has a limit of $5000. Small Claims can work if you know how, whereas this NY proposal gives the Dept of Labor responsibility for recovering the money, which is likely worse because state agencies are underfunded.

I think anyone interested in this discussion is likely to enjoy (and get a lot out of) this talk by Mike Monteiro, entitled “F**k You, Pay Me.” I certainly did (and no, I don’t know the guy or the organization. I just thought it was awesome.) Anyhow, other than the title, the talk is “safe for work.” In fact, many would say that its contents are mandatory before work — at least if you’re a freelancer. Enjoy: http://vimeo.com/22053820