Late Fees on Invoices in Washington
What Washington 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 for judgments); 1% per month on construction
Small Claims Limit
$10,000
Small Claims Court (District Court)
Mechanics Lien Deadline
90 days from the date of cessation of labor or furnishing
Washington Prompt Payment Act
Washington Prompt Payment Act, RCW § 39.76.011 et seq.
Washington requires state agencies to pay within 30 days. Private construction follows RCW Chapter 60.04 for mechanics lien enforcement.
Late fee rules for Washington invoices
Washington has no general usury cap for commercial transactions, giving businesses flexibility. The construction lien law is well-defined with clear notice requirements.
Washington's default judgment interest rate is 12% per annum. The Prompt Payment Act provides 1% per month on late government payments. No general usury cap on commercial contracts.
Important disclaimer
This page provides general information about Washington 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 Washington.
Demand letters and mechanics liens in Washington
Washington requires a Notice to Customer (property owner) within 60 days of first furnishing for subcontractors. A demand letter is standard practice before filing.
Mechanics lien deadline: 90 days from the date of cessation of labor or furnishing. A Notice to Customer must be given within 60 days of first furnishing.
Sample late fee clause for Washington invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (12% per annum (default for judgments); 1% per month on construction maximum per Washington law) will be applied to all balances remaining unpaid after the due date. Pursuant to RCW § 60.04.011 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 $10,000 in Small Claims Court (District Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Washington
What is the maximum late fee I can charge on an invoice in Washington?▾
In Washington, Washington's default judgment interest rate is 12% per annum. The Prompt Payment Act provides 1% per month on late government payments. No general usury cap on commercial contracts. Always disclose late fee terms in your contract or invoice before work begins.
Does Washington have a prompt payment act?▾
Yes. Washington requires state agencies to pay within 30 days. Private construction follows RCW Chapter 60.04 for mechanics lien enforcement.
What is the small claims court limit in Washington?▾
The small claims court limit in Washington is $10,000. Claims are filed in Small Claims Court (District Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Washington?▾
In Washington, 90 days from the date of cessation of labor or furnishing. A Notice to Customer must be given within 60 days of first furnishing.
Do I need to send a demand letter before filing a lien in Washington?▾
Washington requires a Notice to Customer (property owner) within 60 days of first furnishing for subcontractors. A demand letter is standard practice before filing.