Everything freelancers and small businesses need to know about charging late fees, interest rates, and collecting overdue invoices in West Virginia.
This information is provided for general educational purposes only and does not constitute legal advice. Laws change frequently. Consult a licensed attorney in West Virginia for advice on your specific situation. Last reviewed: 2026.
Usury laws cap the maximum interest rate that can be charged on overdue payments in West Virginia.
8% default; 6% judgment rate
West Virginia's default interest rate is 8% (W. Va. Code § 47-6-5). The post-judgment rate is 6% or the contract rate, whichever is higher.
Business loans may specify higher rates by written agreement. Banks and licensed lenders are exempt from the general cap.
Understanding what you can and cannot charge for late payments in West Virginia.
Late fees are permitted when contractually specified. They must be reasonable and proportionate.
No statutory cap; must be reasonable.
Standard contract law reasonableness test.
West Virginia Prompt Payment Act sets deadlines and penalties for late payments in West Virginia.
60 days for state contracts.
Interest at the current rate.
W. Va. Code § 5A-1-3 requires state agencies to pay within 60 days.
Certain industries in West Virginia have additional rules around payment timelines, liens, and collection procedures.
Construction: W. Va. Code § 38-2-1 provides mechanics' lien rights with a 100-day filing window.
Mining and energy: West Virginia's extractive industries often have specialized payment terms.
Government: 60-day payment requirement under W. Va. Code § 5A-1-3.
Use this compliant wording on your invoices to clearly communicate your late fee policy in accordance with West Virginia law.
Payment is due within 30 days. A late fee of 1.5% per month will be assessed on unpaid balances, consistent with West Virginia law (W. Va. Code § 47-6-5).
This wording works because it clearly states the rate, when it applies, and references West Virginia legal standards. Always ensure your stated rate complies with West Virginia's usury limits.
Practical tips for invoicing within West Virginia's legal framework.
Before you can charge a late fee in West Virginia, your client needs to have agreed to the terms. Include your late fee clause directly on your invoice and in your contract.
West Virginia caps interest rates at 8% default / 6% judgment. 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 West Virginia's rules with neighboring and commonly referenced states.
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