Late payment laws › United States (general)

US late payment law for freelancers: no general statute, contract governs, usury caps

Not legal advice. Every statement below links to the official source it comes from.

Outside the freelancer laws in places like New York, California, Illinois and some cities, a late private invoice in the US is a contract matter. That makes your payment terms and late-fee clause the most important tools you have.

What the law says

• Federal prompt-payment rules cover the federal government's own contracts (interest on late payments by federal agencies), not private client invoices.
  Source: 31 U.S.C. § 3902 (GovInfo, U.S. Code)
• States cap interest rates (usury laws), which limits what a late-fee clause can charge. For example, New York's general civil usury cap is 16% per year.
  Source: NY General Obligations Law § 5-501; NY Banking Law § 14-A
• California's Constitution sets a 10% per year cap for many non-exempt lenders, with exceptions.
  Source: California Constitution, Article XV

Use it in your reminder

Mention the rule calmly and factually in your firm or final reminder, e.g. “Under [law], payment was due by [date]. Please pay by [deadline].” Work out the exact amount with the late payment interest calculator.

Related

• US late fee rules by state
• US small claims checklist

Other jurisdictions

United Kingdom · European Union · Australia · Canada (Ontario) · New York State · New York City · California · Illinois · Los Angeles · Columbus, Ohio · Minneapolis

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.