Wage theft is the most lucrative and least prosecuted crime in America.
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FTA: California-based client
What being ripped off taught me
241–247 of 247 posts
Re: What being ripped off taught me
#242Author - I don't think you learned the correct lessons here. The most important thing is that you weren't "ripped off" - you were taken advantage of. Ripped off is when you buy a TV that's supposed to work and it doesn't. Or you just don't get one. You were taken advantage of - which requires your active consent. Nobody made you do all these things for them on faith. You could have left after a few days. You could ha…
I’ve worked on these terms or similar ones on every job I’ve ever done, for 20 years. They’re the norm. How do I know? I’ve been in this industry for 20 years. I’ve been on both sides of freelance contracts in that time. I moderate a discord of 8000 of my peers. I speak at industry events. We compare notes. We all work ahead of payment, and honestly nothing about the fact that this was a rescue job was particularly o…
I agree with you on all points, but I'm surprised you come with that much experience but also faith that contracts are enforceable, especially when dealing with PRC clients. I understand you had a California based entity you were dealing with but even then, I've experienced first hand the worth of a contract in California very early in my career and it's the same as in the PRC: toilet paper. I guess maybe you've just been lucky to go this long without finding that out?
Re: What being ripped off taught me
#243Earlier quoted context omitted.
During my MBA we were taught about the FedEx founding story [0]. The founder of FedEx got low on cash. So he took all the remaining cash (including what he owed in payroll) to Vegas and gambled it. And won, and paid his staff, and the rest is history. We were taught that this was a great example of "entrepreneurial hustle". I was horrified. How many founders copied this lesson? How many employees couldn't pay their m…
I've heard that story, though I always kind of thought it sounded like bullshit. Obviously I have no way to prove that, I guess I'm just usually skeptical of gamblers bragging about their big winnings. But yeah, even if it is true, then it's hardly a good lesson. "CEO took all remaining money to Vegas" isn't exactly something to idolize.
Seems to be true-ish:
> "The $27,000 wasn't decisive, but it was an omen that things would get better," Smith said about the gamble
> After his blackjack win, Smith was able to raise another $11 million, the magazine reported.
[1] https://www.foxbusiness.com/money/fred-smith-fedex-blackjack...
Re: What being ripped off taught me
#244Earlier quoted context omitted.
> - Late payment shall incur interest at 8% above the BoE base rate and a late fee of 100 GBP as per the UK Late Payment Legislation. Partial payments on invoices shall apply to late fees, interest, and then principal, in that order. Do you mean 8 percent, or 8 percentage points?
The exact wording in our contracts and the government guidance is “8% plus the Bank of England base rate”. They mean “percentage points”. https://www.gov.uk/late-commercial-payments-interest-debt-re... As I understand it, from our lawyer, is that this exact wording is automatically enforceable in UK courts and easiest in the event of a dispute. It’s also generally internationally accepted.
I've always wondered, in cases like this where 8%+2% (for example) can either mean 10% or 8.16%, why doesn't the contract just give a fictional example of how the maths would work out?
Re: What being ripped off taught me
#245Earlier quoted context omitted.
I’ve worked on these terms or similar ones on every job I’ve ever done, for 20 years. They’re the norm. How do I know? I’ve been in this industry for 20 years. I’ve been on both sides of freelance contracts in that time. I moderate a discord of 8000 of my peers. I speak at industry events. We compare notes. We all work ahead of payment, and honestly nothing about the fact that this was a rescue job was particularly o…
I agree with you on all points, but I'm surprised you come with that much experience but also faith that contracts are enforceable, especially when dealing with PRC clients. I understand you had a California based entity you were dealing with but even then, I've experienced first hand the worth of a contract in California very early in my career and it's the same as in the PRC: toilet paper. I guess maybe you've just…
I think you're prob right that I've been lucky? Also almost all my contracts are NY state. Also almost all my work comes word of mouth in what 10 years ago was still a small industry ... folks are less likely to rip you off when you know dozens of people in common.
Re: What being ripped off taught me
#246Earlier quoted context omitted.
Unlike in the article where a contractor was promised payment and no payment was made, the cofounder here knows already that the company can’t pay until they raise funds, and has planned for this accordingly, by living off of personal savings or contract jobs. They also understand the risk they’ve taken on and are comfortable trading their time for possibly zero returns.
Thank you. (FWIW it was an earnest question)
You’re welcome!
Cofounders and founding engineers just don’t talk enough about how they model the financial risk of investing in a high risk asset like a startup, and how they make sure that they’re not taking on more risk than they can personally manage if things don’t work out. Approaches will vary by person and personal circumstances, so it’s also helpful to know what constraints they’re working with (like needing to house and feed their family).
Re: What being ripped off taught me
#247Earlier quoted context omitted.
Maybe she just needed the money. Paying later always has the risk that it will never going to happen. And she helped you, did she get anything in return?
I baked her a pie about once a week.
Good. I don't doubt your good intensions. Just thinking that even though you would have paid her in the next convenient occasion, she would still have suffered a (semi-) financial loss because of the increased risk she was put under, of not getting her monmey back if you were run over by bus. Cheers :-)