Have you ever been stiffed by a client? There isn’t a lot of recourse for freelancers beyond sending in invoice after invoice after invoice. A New York state law has now been proposed which would hold deadbeat clients responsible for money owed to freelancers. The Freelancer Payment Protection Act (S4129/A6698) aims to help out freelancers who haven’t paid.
The legislation is gaining traction: it’s passed through the New York State Assembly and has gotten support from both Democrat and Republican state legislators. If the act becomes a law, freelancers will be able to file complaints with the New York Department of Labor about clients who have not paid their bills and allow them to collect 100% of the fees owed to them in addition to legal fees and interest. It’s a small step, and would only apply to freelancers in New York, but it isn’t a small matter. According to the Freelancers Union, “in 2009, New York State’s self-employed lost $4.7 billion due to client nonpayment, and the state lost $323 million in tax revenue.”
You can help in a few ways. Sign your name in support of the Freelancer Payment Protection Act; if you’re in New York, contact your state legislators and tell them to support the Freelancer Payment Protection Act; if you’re anywhere else, contact your legislators and suggest a similar law.
Related required viewing: Fuck you, Pay me – a discussion of adventures in contracts, negotiation, and payment