Everything freelancers and small businesses need to know about charging late fees, interest rates, and collecting overdue invoices in Kansas.
This information is provided for general educational purposes only and does not constitute legal advice. Laws change frequently. Consult a licensed attorney in Kansas for advice on your specific situation. Last reviewed: 2026.
Usury laws cap the maximum interest rate that can be charged on overdue payments in Kansas.
15% per annum
Kansas caps interest at 15% per annum (K.S.A. § 16-207). Default rate is 10%. Usurious contracts result in forfeiture of all interest.
Banks, savings and loan associations, and licensed financial institutions are exempt.
Understanding what you can and cannot charge for late payments in Kansas.
Late fees are allowed when contractually agreed. Must comply with the 15% usury cap when characterized as interest.
No specific cap; interest-based charges limited to 15%.
Standard liquidated damages test. Excessive fees treated as unenforceable penalties.
Kansas Prompt Payment Act sets deadlines and penalties for late payments in Kansas.
30 days for state contracts.
Interest at the contractual or statutory rate.
Kansas requires state agencies to pay within 30 days. K.S.A. § 16-1802 provides retainage release requirements for construction.
Certain industries in Kansas have additional rules around payment timelines, liens, and collection procedures.
Construction: K.S.A. § 60-1101 requires mechanics' lien filing within 5 months. Preliminary notice within 3 days.
Government contracts: 30-day payment. Retainage has specific release timelines.
Agriculture: Kansas has provisions for grain warehouse receipts and commodity dealer bonds.
Use this compliant wording on your invoices to clearly communicate your late fee policy in accordance with Kansas law.
Payment is due within 30 days. A late fee of 1.25% per month (15% per annum, the maximum under Kansas law, K.S.A. § 16-207) will be applied to unpaid invoices.
This wording works because it clearly states the rate, when it applies, and references Kansas legal standards. Always ensure your stated rate complies with Kansas's usury limits.
Practical tips for invoicing within Kansas's legal framework.
Before you can charge a late fee in Kansas, your client needs to have agreed to the terms. Include your late fee clause directly on your invoice and in your contract.
Kansas caps interest rates at 15% (statutory). Charging above this limit can void your right to collect interest entirely and may expose you to penalties.
A reminder 3 days before the due date and a follow-up the day after dramatically reduces late payments. Automated reminders ensure nothing slips through the cracks.
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Compare Kansas's rules with neighboring and commonly referenced states.
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