My Client Has Not Paid in 60 Days and the Contract Says Nothing About Late Fees

You are still owed the money

A contract that says nothing about payment timing still obliges the client to pay for work accepted. Courts generally imply payment within a reasonable time. Sixty days after delivery, with no complaint about the work, you are in a strong position to demand payment.

Can you charge a late fee now?

Usually not one that was never agreed. Adding a late fee to an invoice after the fact is generally not enforceable unless the client agrees. What you may be able to recover is interest: many states allow statutory interest on debts that are due, particularly once you have obtained a judgment. The rate and when it starts vary by state.

State and city freelance payment laws

Some jurisdictions now protect freelancers directly. New York State’s Freelance Isn’t Free Act, which applies statewide, requires written contracts for many freelance engagements and payment by the contract date or, if none is stated, within thirty days of completing the work. Illinois has a similar Freelance Worker Protection Act, and New York City and several other cities have their own versions. These laws can provide remedies, including in some cases additional damages, beyond what your contract says. Check whether one applies where you or your client is based.

How to escalate, step by step

• A polite reminder that the invoice is overdue, restating the amount and due date.
• A firmer follow-up by email, setting a specific payment date.
• A formal written demand letter stating the amount, the work delivered, a final deadline, and your next step.
• Pausing any further work until the outstanding amount is paid.
• A small claims filing, or a complaint under a freelance payment law if one applies.

Small claims court

For most freelance invoices, small claims court is the realistic route. It is designed for people without lawyers, filing fees are modest, and the limits in many states cover typical freelance invoices, though they vary widely. A clear contract, your invoice, evidence of delivery, and your demand letter are usually what you need.

A worked example

Sophie, a freelance copywriter in New York, delivered a website project for $4,500. The contract says nothing about payment timing. Sixty days later, and after two reminders, the client has not paid or complained about the work.

Under New York’s freelance law, with no payment date in the contract, payment was due within thirty days of completion. Sophie sends a formal demand setting a ten-day deadline and noting that she will pursue her remedies under the Freelance Isn’t Free Act if unpaid. Many clients pay at this point. If not, she has a straightforward claim.

Sample demand wording

“This is a formal request for payment of invoice [number] for $[amount], for [work], delivered on [date]. The invoice is now [number] days overdue. Please pay in full by [date, ten days from now]. If payment is not received by then, I will pursue collection, including through small claims court and any applicable freelance payment law, without further notice.”

Fix it in your next contract

• A clear payment deadline, such as net-15 or net-30.
• A late fee or interest rate, stated in advance.
• A deposit before work starts.
• Milestone payments for larger projects.
• A right to pause work while invoices are overdue.
• Transfer of rights to the work only on full payment.

Common mistakes

• Continuing to work while earlier invoices are unpaid.
• Adding an unagreed late fee, which gives the client something to dispute.
• Waiting months before sending a formal demand.
• Handing over final files and rights before being paid.

Tax on invoices you have not been paid

Most freelancers report income on a cash basis, meaning income is taxed when it is received, not when it is invoiced. On that basis an unpaid invoice is not taxable income until it is paid. If you use accrual accounting, the position is different and a bad debt deduction may be relevant. Check which method you use before the end of the tax year.

Collections agencies

For larger debts, a collections agency is an option. Agencies usually take a percentage of what they recover, often substantial, and may affect the relationship with the client for good. They make most sense when the client has stopped responding and the amount justifies the fee.

Payment platforms and protections

If you found the client through a freelance platform, check its payment protection terms before chasing the client directly. Platform escrow or milestone systems often provide dispute processes, and working outside them can forfeit that protection. For direct clients, taking a deposit and billing in milestones serves a similar purpose.

What a demand letter should include

• Your name and business details, and the client’s.
• The work performed and the date it was delivered or completed.
• The invoice number, amount and original due date.
• A summary of reminders already sent.
• A clear final deadline for payment, typically seven to fourteen days.
• The step you will take if unpaid, such as small claims or a freelance payment law complaint.
• Copies of the invoice and any relevant approval emails.

Small claims, step by step

Small claims limits range from a few thousand dollars to around $25,000 depending on the state. The usual process is to confirm the court with jurisdiction, generally where the client is located or where the work was performed; file a claim form and pay a modest filing fee; serve the claim on the client under the court’s rules; prepare your evidence; and attend the hearing. Many clients pay once served, because defending a straightforward unpaid invoice is rarely worth their time.

Evidence to keep

• The contract or email agreement setting the scope and fee.
• Deliverables and proof of delivery.
• Approval emails or feedback accepting the work.
• Invoices and every payment reminder.
• Your demand letter and proof it was sent.

Key terms explained

These are the terms you are most likely to meet in the clause itself and in any correspondence about it, explained in plain English so you can read your own contract with confidence.

• Net terms: the number of days after invoicing that payment is due, such as net-30.
• Late fee: a charge for late payment, which generally must be agreed in advance.
• Statutory interest: interest allowed by state law on debts or judgments.
• Demand letter: a formal written request for payment setting a final deadline.
• Small claims court: a simplified court for lower-value disputes.
• Cash basis accounting: recording income when received rather than when invoiced.

Keeping the relationship if you want to

Not every overdue invoice signals a bad client. Payment runs, approval chains and staff changes cause genuine delays. If you value the client, a phone call to the person who approves invoices often achieves more than escalating letters, and asking whether anything is holding up payment can surface a simple fix, such as a missing purchase order number. Escalate firmly once it is clear the delay is not administrative.

Protect the next project

ClauseAudit flags freelance contracts with no payment deadline, no late fee, and rights that transfer before payment, and suggests wording to fix each.