Getting Paid By Low-Class Companies June 7, 2009 at 11:48 am
I’ve noticed a trend lately. In times of economic struggles, it is OK not to pay your contractors.
I am a contractor. I’ve been working hard for this one company Since around March. Here is the situation.
- This place is too far for me to travel to every day.
- I don’t currently have a license, so it’s even more difficult to do 1).
- I lowered my rate by ~40% as a favor to these guys to help them out. Not to mention I needed the job.
- I allowed for net-30 payment (huge mistake).
- I am on-call. I can be paged at any time if there is a system problem. I therefore have to be responsible and not become inebriated, ever.
- I am available for questions whenever they like.
- I pay $60/mo for an Air Card so that I am available anywhere I go.
- I put in a significant amount of time over what I bill for.
- I got them a STEAL on servers. I called in a personal favor to get this done.
- My contract says that I am to put in 20 hours a week.
Putting my work into perspective, I do Operations work. Here is the scope of things.
- Keep servers running efficiently.
- Write scripts to automate certain procedures.
- Ensure the minimum amount of downtime possible.
Unfortunately, Operations work is hard to really keep track of. There are so many little items constantly happening that aren’t big enough to make tickets out of. Not to mention the due date on everything is “yesterday”.
That being said, the CEO is complaining that I billed twelve extra hours over two weeks in my first month. I was up until 5 a.m. on multiple nights helping them out (I was even on a conference with the CEO at the time!). I sat in the datacenter for 10 hours a day for a few days. This was to get them ready for a very important convention. I even went through the trouble of tracking my extra hours with an awful little app (an adobe air app called Klok).
So… I sent in my invoice. It’s full of very valid hours. I felt like I hooked them up, since I really went the extra mile for them (as far as not billing them for hours here and there). I had been paged, and I didn’t even track those hours. After pretty much begging, I get this response:
“you expect me to take care of your needs while I am on vacation in New York? By the way, we have 30 days Net terms on your invoices so your invoice is not due yet.”.
uh, yes? Just because you are on vacation doesn’t mean you get to decide whether or not you pay people. Welcome to America.
I finally get a check. This check is about 60% of what was on the invoice. I attribute this to the idiotic net-30 terms that I agreed to. I then email him about this and I get this response:
“Yes Eric I like to have a discussion with you around your invoice. I don’t think we will be able to pay the entire amount at this point in time as we do not agree with the hours you charged us. Lets definitely come to a conclusion on this quick.”
Ok. You probably shouldn’t have paid me 50 percent of my check, and then a month later (net-30) when I ask for the rest, say that you don’t agree with the hours. I don’t even work with the CEO at this company, so he has no idea what kind of hours that I put in. He just doesn’t want to pay for the services rendered, which I found out later he tried to pull with the vendor I hooked him up with for servers.
Now, the latest news is that I’ve been cut down to 10 hours a week. I’m going to track my hours with ruthless efficiency this week and give them NO MORE than 10 hours. That’s ONE DAY of work a week. This won’t even pay my rent BEFORE taxes.
In summary, I’m getting screwed. I’ve billed at 60% my normal rate, hooked them up with hours that I haven’t billed for, and have been extremely available and flexible with my time. I get repaid with some little token percentage of a paycheck. Unfortunately, I don’t have much recourse. This is my livelihood, mind you, and I could have been working this whole time for a good company, had I known that I wasn’t going to get paid for my work.
I am thinking of starting a contractor blacklist of companies not to support.
We’ll see what Monday has to offer. I don’t have high hopes on this.
Does anybody have any suggestions? If this pay doesn’t come through, I’m not in a very good situation. Is anybody hiring?