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Small business · Situation

Client won't pay your invoice in New York: how to get paid

Updated By The editorial teamNot reviewed by an attorney — based on the official sources below

In short

If a client won't pay for work you did, you can usually sue for the unpaid amount plus interest; the deadline is generally six years (CPLR § 213(2)). If you're a freelancer and the job was worth $800 or more, New York's Freelance Isn't Free Act requires payment by the agreed date — or within 30 days after you finish if none was set — and may give you double damages and attorney's fees. Start with a reminder and a written demand. Then, as an individual, you can use small claims court (up to $10,000 in New York City); a corporation, partnership or association uses the commercial claims part instead.

Read on for the details, the exceptions and the sources.

In plain words

Invoice
Your bill to the client listing the work, the amount and the due date.
Commercial claims
A simple court part, like small claims, for corporations, partnerships and associations — with the same dollar limit and a $25 filing fee.
Sole proprietor
Someone who does business in their own name or a trade name without forming a company. You can use small claims court as an individual.
Judgment
The court's decision that the client owes you a specific amount. Collecting it is a separate step.

What the law says, briefly

An unpaid invoice is usually a claim for breach of contract — written, oral or implied from how you worked together. You generally have six years to sue (CPLR § 213(2)), or four years if what you sold was goods (UCC § 2-725). If a court awards you money because of a broken contract, it adds interest, generally from when payment was due (CPLR § 5001), at 9% a year — or 2% if the client is an individual and the debt is a consumer debt, meaning your service was mainly for the client's personal, family or household purposes (CPLR § 5004).

Freelancers get extra protection. Under the statewide Freelance Isn't Free Act, a client that hires an individual or one-person business for $800 or more (counting all its contracts with you over 120 days) must pay the agreed amount by the contract date, or within 30 days after you complete the work if no date was set, and can't make you accept less to get paid on time (General Business Law §§ 1410–1411). If you win a payment claim, you're awarded double damages plus attorney's fees and costs (§ 1414(3)).

What to check in your lease, contract or papers

  • The agreed price, payment terms and due date. Late fees or interest apply only if the contract provides for them (beyond the interest a court adds).
  • Whether you're a 'freelance worker' under the Act (an individual or one-person business, job of $800 or more, not in an excluded group such as construction contractors or licensed medical professionals).
  • Whether you did all the work the contract required — and whether the client has complained about quality in writing.
  • Who exactly the client is: a person, or a company? Use its exact legal name.
  • Whether you do business under a name other than your own. If so, you need an assumed name certificate on file before you can sue on that business's contracts (General Business Law § 130(9)).

What to document

  • The contract, proposal, purchase order or e-mails that set the price and scope.
  • Every invoice, with the date sent.
  • Proof the work was delivered and accepted: delivery e-mails, sign-offs, files, photos.
  • All reminders and the client's replies, including any excuses or promises to pay.
  • Any partial payments received.

What to do, step by step

  1. Send a friendly reminder

    Re-send the invoice with the due date and payment options. Sometimes it's just stuck in someone's inbox.

  2. Escalate in writing

    If it's still unpaid, send a demand letter: what you did, the invoice number and amount, the due date, the law that applies (for freelancers, General Business Law § 1411), and a firm deadline to pay.

  3. Freelancers: file a complaint

    You can complain to the New York Attorney General, which enforces the Freelance Isn't Free Act. In New York City, you can also complain to the Department of Consumer and Worker Protection.

  4. Pick the right court

    If you're suing as an individual or sole proprietor and the amount is within the limit, use small claims. A corporation, partnership or association uses the commercial claims part (New York City Civil Court Act §§ 1809, 1809-A), limited to five claims a month; if your business is an LLC, ask the clerk which part to use. Above the limit, use the regular civil courts.

  5. Collect the judgment

    Winning gives you a judgment; if the client still won't pay, the court's information on collecting a judgment explains the next steps.

What not to do

  • Don't keep working for a client that has stopped paying without getting the problem resolved in writing first.
  • Don't accept a smaller 'final' payment just to get paid on time if you're a freelancer — the law forbids clients from demanding that (§ 1411(2)); if you settle for less, do it knowingly and in writing.
  • Don't post accusations about the client online. Stick to the legal process.
  • Don't let years go by: the time to sue keeps running while you wait.

When to send a demand letter

Send it soon after the due date passes and a reminder goes unanswered. If your business is a corporation, partnership or association suing an individual over a consumer transaction in a commercial claims part, the law requires you to mail a demand letter by first-class mail 10 to 180 days before filing, on the courts' prescribed form (New York City Civil Court Act § 1803-A(b)).

When to go to court

Once your deadline passes, file. Small claims handles up to $10,000 in New York City, $5,000 in city and district courts, and $3,000 in town and village courts; the commercial claims limit is the same as the small claims limit (New York City Civil Court Act § 1801-A). A commercial claim costs $25 plus mailing costs (§ 1803-A). If your work improved real property — such as renovation or landscaping — you may also have mechanic's lien rights, which must be filed within eight months after the last work (four months for a single-family home) (Lien Law § 10); liens have strict technical rules, so get advice.

What evidence to keep

  • The contract or the messages that set the price
  • Your invoices and dates sent
  • Proof the work was delivered and accepted
  • Reminders, your demand letter and proof of delivery
  • Any replies from the client
  • Records of partial payments

Figures that change

  • Time to sue on an unpaid contract: 6 years (4 for sales of goods) (as of 2026-10-30; N.Y. Civil Practice Law and Rules)
  • Interest a court adds: 9% a year (2% on a consumer debt owed by an individual) (as of 2026-10-30; N.Y. Civil Practice Law and Rules)
  • Commercial claims filing fee: $25 plus mailing costs (as of 2026-10-30; New York City Civil Court Act)
  • Commercial claims per business: No more than 5 a month (as of 2026-10-30; New York City Civil Court Act)
  • Mechanic's lien filing deadline: 8 months after the last work (4 months for a single-family home) (as of 2026-10-30; N.Y. Lien Law)

Frequently asked questions

Can I charge a late fee on an overdue invoice?

Only if the client agreed to one, usually in the contract or accepted terms. Without that, you can still ask the court for statutory interest on the unpaid amount (CPLR § 5001), generally 9% a year, or 2% on a consumer debt owed by an individual (CPLR § 5004).

My client is a big company. Can I still use small claims?

Yes — what matters is who is suing. If you're an individual or sole proprietor, you can sue a company in small claims. If your business is a corporation, partnership or association, you use the commercial claims part instead.

The client says the work wasn't good enough. Do I still get paid?

It depends on what the contract required and whether you delivered it. A judge will look at the agreement, your work and the client's complaints. If the client accepted and used the work without objecting, keep the proof.

I use a business name but never registered it. Can I still sue?

Not until you file. A person doing business under an assumed name without the certificate required by General Business Law § 130 can't maintain a lawsuit on contracts made in that name until the certificate is filed (§ 130(9)). You can file it and then sue.

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Official sources

This page was written from the sources below. “Checked” is the date the source was last opened and read.

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This page is general information based on the official sources listed, current as of the update date. It is not legal advice and does not replace a review of your own situation; if a case is already in court, a deadline is close, the amount is large, or there are criminal, immigration or family-law consequences, talk to a lawyer or legal aid.