Late Fees on Invoices in Connecticut
What Connecticut contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
12% per annum (default legal rate for judgments); higher by contract
Small Claims Limit
$5,000
Small Claims Court (Superior Court)
Mechanics Lien Deadline
90 days from the last day of furnishing services or materials
Connecticut Prompt Payment Act
Connecticut Prompt Payment Act, Conn. Gen. Stat. § 49-41a et seq.
Connecticut requires progress payments within 30 days on public works. Private construction payments follow contract terms, with lien rights as enforcement.
Late fee rules for Connecticut invoices
Connecticut allows contractual late fees that are reasonable. Courts evaluate fees as liquidated damages and will not enforce penalties.
Connecticut's legal interest rate is 10% per annum for most purposes. Judgment interest accrues at 10%. Contracts may specify reasonable higher rates.
Important disclaimer
This page provides general information about Connecticut late fee rules. It is not legal advice. Laws change, and your specific situation may have unique factors. For disputes involving significant amounts, consult a licensed attorney in Connecticut.
Demand letters and mechanics liens in Connecticut
Connecticut does not require a formal demand letter, but a written notice of intent to file a lien is standard practice.
Mechanics lien deadline: 90 days from the last day of furnishing services or materials. A mechanic's lien must be filed on the land records.
Sample late fee clause for Connecticut invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (12% per annum (default legal rate for judgments); higher by contract maximum per Connecticut law) will be applied to all balances remaining unpaid after the due date. Pursuant to Connecticut General Statutes § 49-33 et seq. (Mechanics' Liens), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $5,000 in Small Claims Court (Superior Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Connecticut
What is the maximum late fee I can charge on an invoice in Connecticut?▾
In Connecticut, Connecticut's legal interest rate is 10% per annum for most purposes. Judgment interest accrues at 10%. Contracts may specify reasonable higher rates. Always disclose late fee terms in your contract or invoice before work begins.
Does Connecticut have a prompt payment act?▾
Yes. Connecticut requires progress payments within 30 days on public works. Private construction payments follow contract terms, with lien rights as enforcement.
What is the small claims court limit in Connecticut?▾
The small claims court limit in Connecticut is $5,000. Claims are filed in Small Claims Court (Superior Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Connecticut?▾
In Connecticut, 90 days from the last day of furnishing services or materials. A mechanic's lien must be filed on the land records.
Do I need to send a demand letter before filing a lien in Connecticut?▾
Connecticut does not require a formal demand letter, but a written notice of intent to file a lien is standard practice.