Everything freelancers and small businesses need to know about charging late fees, interest rates, and collecting overdue invoices in Oregon.
This information is provided for general educational purposes only and does not constitute legal advice. Laws change frequently. Consult a licensed attorney in Oregon for advice on your specific situation. Last reviewed: 2026.
Usury laws cap the maximum interest rate that can be charged on overdue payments in Oregon.
12% per annum
Oregon caps interest at 12% (ORS § 82.010). Default rate is 9%.
Business loans over $50,000 are exempt. Banks and licensed lenders exempt.
Understanding what you can and cannot charge for late payments in Oregon.
Late fees are allowed when contractually agreed. Business loans over $50,000 are exempt from the 12% cap.
No specific cap for exempt business transactions.
Standard liquidated damages test.
Oregon Prompt Payment Act sets deadlines and penalties for late payments in Oregon.
30 days for state contracts.
Interest on late payments.
ORS § 293.462 requires state agencies to pay within 30 days. Construction has specific provisions under ORS § 701.640.
Certain industries in Oregon have additional rules around payment timelines, liens, and collection procedures.
Construction: ORS § 87.035 requires mechanics' lien filing within 75 days. An 8-day notice to owner is required.
Government contracts: ORS § 293.462 mandates 30-day payment.
Technology: Oregon's tech industry (Portland) follows standard commercial terms.
Use this compliant wording on your invoices to clearly communicate your late fee policy in accordance with Oregon law.
Payment is due within 30 days. A late fee of 1% per month (12% per annum, the maximum under Oregon law, ORS § 82.010) will be applied to unpaid invoices.
This wording works because it clearly states the rate, when it applies, and references Oregon legal standards. Always ensure your stated rate complies with Oregon's usury limits.
Practical tips for invoicing within Oregon's legal framework.
Before you can charge a late fee in Oregon, your client needs to have agreed to the terms. Include your late fee clause directly on your invoice and in your contract.
Oregon caps interest rates at 12% (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 Oregon's rules with neighboring and commonly referenced states.
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