Late Fees on Invoices in Florida
What Florida contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
1% per month (12% per annum) for construction; otherwise per contract
Small Claims Limit
$8,000
Small Claims Court (County Court)
Mechanics Lien Deadline
90 days from the last day of furnishing labor/materials
Florida Prompt Payment Act
Florida Prompt Payment Act, Fla. Stat. §§ 218.70–218.80
Florida requires local government entities to pay within 25 days (construction) or 40 days (other). For private construction, the owner must pay the contractor within 14 days of the payment becoming due.
Late fee rules for Florida invoices
Florida does not have a statutory cap on late fees for private contracts, but fees must be reasonable. Courts have upheld 1.5% monthly (18% annual) as standard.
Florida's construction lien law provides for 1% per month interest on unpaid construction debts. For non-construction work, the contract rate applies.
Important disclaimer
This page provides general information about Florida 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 Florida.
Demand letters and mechanics liens in Florida
Florida requires a Contractor's Final Affidavit and a Notice to Owner before lien rights attach. A demand letter is not legally required but is best practice.
Mechanics lien deadline: 90 days from the last day of furnishing labor/materials. A Notice to Owner must be served within 45 days of first furnishing.
Sample late fee clause for Florida invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (1% per month (12% per annum) for construction; otherwise per contract maximum per Florida law) will be applied to all balances remaining unpaid after the due date. Pursuant to the Florida Prompt Payment Act (Fla. Stat. § 218.70 et seq.), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $8,000 in Small Claims Court (County Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Florida
What is the maximum late fee I can charge on an invoice in Florida?▾
In Florida, Florida's construction lien law provides for 1% per month interest on unpaid construction debts. For non-construction work, the contract rate applies. Always disclose late fee terms in your contract or invoice before work begins.
Does Florida have a prompt payment act?▾
Yes. Florida requires local government entities to pay within 25 days (construction) or 40 days (other). For private construction, the owner must pay the contractor within 14 days of the payment becoming due.
What is the small claims court limit in Florida?▾
The small claims court limit in Florida is $8,000. Claims are filed in Small Claims Court (County Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Florida?▾
In Florida, 90 days from the last day of furnishing labor/materials. A Notice to Owner must be served within 45 days of first furnishing.
Do I need to send a demand letter before filing a lien in Florida?▾
Florida requires a Contractor's Final Affidavit and a Notice to Owner before lien rights attach. A demand letter is not legally required but is best practice.