Late Fees on Invoices in Hawaii
What Hawaii 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) on government contracts; 10% default
Small Claims Limit
$5,000
Small Claims Division (District Court)
Mechanics Lien Deadline
45 days from completion for general contractors; 45 days for subcontractors after giving notice
Hawaii Prompt Payment Act
Hawaii Prompt Payment Act, HRS § 103-10
Hawaii requires government agencies to pay within 30 calendar days. Late payments accrue interest at 1% per month. Private contracts follow agreed terms.
Late fee rules for Hawaii invoices
Hawaii allows reasonable contractual late fees. The state's usury law limits interest to 12% per annum for most transactions.
Hawaii's default legal interest rate is 10% per annum. The Prompt Payment Act provides 1% per month on late government payments. Private contract rates are negotiable.
Important disclaimer
This page provides general information about Hawaii 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 Hawaii.
Demand letters and mechanics liens in Hawaii
Hawaii does not require a formal demand letter, but subcontractors must give notice to the owner to preserve lien rights.
Mechanics lien deadline: 45 days from completion for general contractors; 45 days for subcontractors after giving notice. A Notice of Completion triggers the deadline.
Sample late fee clause for Hawaii invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (1% per month (12% per annum) on government contracts; 10% default maximum per Hawaii law) will be applied to all balances remaining unpaid after the due date. Pursuant to Hawaii Revised Statutes § 507-41 et seq. (Mechanics' and Materialmen's 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 Division (District Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Hawaii
What is the maximum late fee I can charge on an invoice in Hawaii?▾
In Hawaii, Hawaii's default legal interest rate is 10% per annum. The Prompt Payment Act provides 1% per month on late government payments. Private contract rates are negotiable. Always disclose late fee terms in your contract or invoice before work begins.
Does Hawaii have a prompt payment act?▾
Yes. Hawaii requires government agencies to pay within 30 calendar days. Late payments accrue interest at 1% per month. Private contracts follow agreed terms.
What is the small claims court limit in Hawaii?▾
The small claims court limit in Hawaii is $5,000. Claims are filed in Small Claims Division (District Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Hawaii?▾
In Hawaii, 45 days from completion for general contractors; 45 days for subcontractors after giving notice. A Notice of Completion triggers the deadline.
Do I need to send a demand letter before filing a lien in Hawaii?▾
Hawaii does not require a formal demand letter, but subcontractors must give notice to the owner to preserve lien rights.