News outlet CNN is reportedly set to wait 90 days to pay freelancers, according to reports last week from The Daily Caller.
The publication said CNN will impose net 90-day payment terms to compensate freelance employees beginning in June, leading freelancers to criticize the move on social media. News of CNN’s freelancer payment changes first emerged from Twitter user Marcus DiPaola, who published a letter said to be sent to freelancers by CNN.
Signed by Brad Ingram, CNN’s vice president of Procure to Pay, the letter reads, “These changes will be implemented for all our suppliers except where existing contracts state otherwise. We understand that the standard payment terms could impact your business. However, we are making this change to be better aligned with our corporate requirements.”
CNN is reportedly collaborating on a supplier financing solution with Citi that will enable suppliers to access financing while they wait the 90 days to be paid, though CNN noted the program is “completely optional” and that details on the offer would be provided soon.
Reports said the letter was sent to all freelancers. It is unclear whether CNN’s 90-day payment terms apply across all vendors in its procurement process.
Separately, Caitlin Pearce, executive director of the Freelancers Union, published a blog post challenging CNN’s decision.
“No CNN, Net 90 is not a reasonable payment term,” she titled the piece, writing, “Net 90 is NOT a reasonable payment term for people who must pay rent every 30 days.”
She argues that CNN’s policy is in violation of the Freelance Isn’t Free law in New York City, which establishes a 30-day payment term as the standard for freelancer payments.
“Make no mistake,” continued Pearce, “Net 90 hurts independent workers’ financial stability.”
Media outlets have not reported on whether CNN has commented publicly on the matter.