Late Fees on Invoices in Louisiana
What Louisiana 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 maximum); higher on commercial contracts by agreement
Small Claims Limit
$5,000
Small Claims Division (City Court or Justice of the Peace)
Mechanics Lien Deadline
60 days from filing a Notice of Termination, or 70 days from substantial completion if no notice is filed
Louisiana Prompt Payment Act
Louisiana Prompt Payment Act, La. R.S. § 9:2784
Louisiana requires payment within 30 days for public contracts and 45 days for private commercial contracts. Late payments trigger 12.5% per annum interest.
Late fee rules for Louisiana invoices
Louisiana's Private Works Act is unique — it uses a notice and privilege system rather than traditional mechanics liens. Late fee clauses are enforceable within usury limits.
Louisiana's conventional interest rate cap is 12% per annum for consumers. Commercial transactions are exempt from usury limits. The Prompt Payment Act provides interest plus attorney fees.
Important disclaimer
This page provides general information about Louisiana 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 Louisiana.
Demand letters and mechanics liens in Louisiana
Louisiana does not require a formal demand letter, but a Notice of Non-Payment must be sent to preserve privilege rights.
Mechanics lien deadline: 60 days from filing a Notice of Termination, or 70 days from substantial completion if no notice is filed. A Statement of Claim must be filed.
Sample late fee clause for Louisiana invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (12% per annum (default maximum); higher on commercial contracts by agreement maximum per Louisiana law) will be applied to all balances remaining unpaid after the due date. Pursuant to Louisiana Revised Statutes § 9:4801 et seq. (Private Works Act), 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 (City Court or Justice of the Peace)), and referral to collections.”
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Start Free TrialFrequently asked questions — Louisiana
What is the maximum late fee I can charge on an invoice in Louisiana?▾
In Louisiana, Louisiana's conventional interest rate cap is 12% per annum for consumers. Commercial transactions are exempt from usury limits. The Prompt Payment Act provides interest plus attorney fees. Always disclose late fee terms in your contract or invoice before work begins.
Does Louisiana have a prompt payment act?▾
Yes. Louisiana requires payment within 30 days for public contracts and 45 days for private commercial contracts. Late payments trigger 12.5% per annum interest.
What is the small claims court limit in Louisiana?▾
The small claims court limit in Louisiana is $5,000. Claims are filed in Small Claims Division (City Court or Justice of the Peace). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Louisiana?▾
In Louisiana, 60 days from filing a Notice of Termination, or 70 days from substantial completion if no notice is filed. A Statement of Claim must be filed.
Do I need to send a demand letter before filing a lien in Louisiana?▾
Louisiana does not require a formal demand letter, but a Notice of Non-Payment must be sent to preserve privilege rights.