My first client in video games was the same. They rarely paid their contractors on time (the payment was months late), or it wasn't the entire agreed sum. We kept sending in late payment notices to their finance guy, and they fired us all for being troublemakers. I believe I had a notice period of two weeks, but they fired me with one day's notice.

Suing them was out of the question. For me, as for others, it would have been international. The company was in Italy, and the contractors were all over Europe. We'd probably each spend over 10k euros on the proceedings and representation in Italian courts. And the company wasn't overdue by much more than that. Besides, even if we won and the court ruled our legal expenses were to be paid, we weren't sure the company was solvent enough. So no one sued.

I believe it was their modus operandi. The company continued firing their contractors when it got into arrears before a lawsuit made sense. Sometimes, it's just their business plan.

I agree with the article's author—no pay, no work. Before starting contract work, one should think about the line they won't cross regarding late payments. For me, it's when an invoice becomes overdue, and it's plainly a breach of contract. I will never again cross that line and keep working.