Late payment laws by country and state

What the law actually says when a client pays late: deadlines, statutory interest, fixed fees and freelancer protections. Every statement links to the official source.

Not legal advice. Not legal advice. This page summarises official sources as of 31 October 2026 for general information; laws change and details depend on your contract and circumstances. Check the linked source or ask a qualified lawyer before relying on it.

• United Kingdom
  The Late Payment of Commercial Debts (Interest) Act 1998 explained for freelancers and small businesses: 8% over base rate, £40/£70/£100 compensation, when a payment is late. With GOV.UK sources.
• European Union
  A hub for the EU Late Payment Directive: statutory interest of at least the reference rate + 8 points, a €40 minimum recovery fee, and payment-term limits. Each country implements it in national law. Sources: EUR-Lex and the European Commission.
• Australia
  There is no general statutory late-payment interest in Australia: your contract governs. What does exist: Security of Payment laws for construction and the Payment Times Reporting Scheme for large businesses. Official sources.
• Canada (Ontario)
  Ontario's Construction Act prompt-payment rules (28 days for owners, 7 days down the chain) as an example of Canadian prompt-payment law, plus the federal Interest Act rule on stating interest as an annual rate. Official sources.
• New York State
  Since August 28, 2024, New York State's Freelance Isn't Free Act (General Business Law Article 44-A) requires written contracts and on-time payment for freelance work of $800 or more. Official NY sources.
• New York City
  New York City's Freelance Isn't Free Act requires written contracts for freelance work of $800+ and payment within 30 days if no date is set, with complaints handled by DCWP. Official NYC sources.
• California
  California's Freelance Worker Protection Act (Business and Professions Code §§ 18100-18107), effective January 1, 2025: written contracts and payment deadlines for freelance professional services of $250+. Official California sources.
• Illinois
  Illinois' Freelance Worker Protection Act (820 ILCS 193), effective July 1, 2024: written contracts and payment deadlines for freelance work of $500+, with double damages for late payment. Official Illinois sources.
• Los Angeles
  Los Angeles' Freelance Worker Protections Ordinance (LAMC Chapter XVIII, Article 10) covers contracts from July 1, 2023 for work in the City worth $600+ per calendar year. Enforced by the Office of Wage Standards. Official LA sources.
• Columbus, Ohio
  Columbus City Code Chapter 2337 requires written contracts for freelance work of $250+ and payment by the contract date or within 30 days of completion. Official Columbus sources.
• Minneapolis
  Since January 1, 2021, Minneapolis requires commercial hiring parties to put key freelance contract terms in writing, including the payment date, and prohibits refusing agreed payment. Official City of Minneapolis sources.
• United States (general)
  Most US states have no general law setting a deadline for paying a private business invoice: your contract governs. Late fees are limited by state usury caps; prompt-payment laws mainly cover government and construction. Official sources.

Calculate interest and fees with the late payment calculator, or browse the template library.

Write my reminders free