Late Fees on Invoices in Wisconsin
What Wisconsin contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
5% per annum (default); 12% maximum on most consumer contracts
Small Claims Limit
$10,000
Small Claims Court (Circuit Court)
Mechanics Lien Deadline
6 months from the last day of furnishing labor or materials
Wisconsin Prompt Payment Act
Wisconsin Prompt Payment Act, Wis. Stat. § 66.0135 et seq.
Wisconsin requires municipalities to pay within 30 days. Private construction payments follow Wis. Stat. § 779 for construction lien enforcement.
Late fee rules for Wisconsin invoices
Wisconsin's relatively low default rate of 5% makes it important to specify a late fee clause. The construction lien law requires specific notice steps.
Wisconsin's default legal interest rate is 5% per annum. Consumer contracts are capped at 12%. Commercial contracts can specify rates up to the legal maximum.
Important disclaimer
This page provides general information about Wisconsin 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 Wisconsin.
Demand letters and mechanics liens in Wisconsin
Wisconsin does not require a demand letter, but a Notice of Intent to File a Construction Lien should be served at least 30 days before filing.
Mechanics lien deadline: 6 months from the last day of furnishing labor or materials. A Notice of Claim must be filed with the county clerk of court.
Sample late fee clause for Wisconsin invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (5% per annum (default); 12% maximum on most consumer contracts maximum per Wisconsin law) will be applied to all balances remaining unpaid after the due date. Pursuant to Wisconsin Statutes § 779.01 et seq. (Construction 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 (Circuit Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Wisconsin
What is the maximum late fee I can charge on an invoice in Wisconsin?▾
In Wisconsin, Wisconsin's default legal interest rate is 5% per annum. Consumer contracts are capped at 12%. Commercial contracts can specify rates up to the legal maximum. Always disclose late fee terms in your contract or invoice before work begins.
Does Wisconsin have a prompt payment act?▾
Yes. Wisconsin requires municipalities to pay within 30 days. Private construction payments follow Wis. Stat. § 779 for construction lien enforcement.
What is the small claims court limit in Wisconsin?▾
The small claims court limit in Wisconsin is $10,000. Claims are filed in Small Claims Court (Circuit Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Wisconsin?▾
In Wisconsin, 6 months from the last day of furnishing labor or materials. A Notice of Claim must be filed with the county clerk of court.
Do I need to send a demand letter before filing a lien in Wisconsin?▾
Wisconsin does not require a demand letter, but a Notice of Intent to File a Construction Lien should be served at least 30 days before filing.