Late Fees on Invoices in Ohio
What Ohio contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
8% per annum (default legal rate); 18% per annum on construction by contract
Small Claims Limit
$6,000
Small Claims Court (Municipal or County Court)
Mechanics Lien Deadline
75 days from the last day of furnishing labor or materials
Ohio Prompt Payment Act
Ohio Prompt Payment Act, Ohio Rev. Code § 4113.61
Ohio requires payment to contractors within 30 days. Subcontractors must be paid within 10 days of the contractor receiving payment.
Late fee rules for Ohio invoices
Ohio allows reasonable late fees by contract. Courts will not enforce fees deemed to be penalties rather than liquidated damages.
Ohio's statutory interest rate is 8% per annum. Contracts may specify higher rates. The prompt pay act provides for interest plus attorney fees on late construction payments.
Important disclaimer
This page provides general information about Ohio 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 Ohio.
Demand letters and mechanics liens in Ohio
Ohio requires service of a copy of the lien affidavit on the property owner. A demand letter before this step is recommended.
Mechanics lien deadline: 75 days from the last day of furnishing labor or materials. An Affidavit and Notice of Lien must be filed.
Sample late fee clause for Ohio invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (8% per annum (default legal rate); 18% per annum on construction by contract maximum per Ohio law) will be applied to all balances remaining unpaid after the due date. Pursuant to Ohio Rev. Code § 4113.61, the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $6,000 in Small Claims Court (Municipal or County Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Ohio
What is the maximum late fee I can charge on an invoice in Ohio?▾
In Ohio, Ohio's statutory interest rate is 8% per annum. Contracts may specify higher rates. The prompt pay act provides for interest plus attorney fees on late construction payments. Always disclose late fee terms in your contract or invoice before work begins.
Does Ohio have a prompt payment act?▾
Yes. Ohio requires payment to contractors within 30 days. Subcontractors must be paid within 10 days of the contractor receiving payment.
What is the small claims court limit in Ohio?▾
The small claims court limit in Ohio is $6,000. Claims are filed in Small Claims Court (Municipal or County Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Ohio?▾
In Ohio, 75 days from the last day of furnishing labor or materials. An Affidavit and Notice of Lien must be filed.
Do I need to send a demand letter before filing a lien in Ohio?▾
Ohio requires service of a copy of the lien affidavit on the property owner. A demand letter before this step is recommended.