Freelance client won't pay final invoice — $7,500 owed

I'm a freelance web developer in San Diego. I completed a full website redesign for a client — a local restaurant chain. The project took about 6 weeks and was billed in three phases: $2,500 deposit (paid), $2,500 at midpoint (paid), and $2,500 on final delivery (unpaid). There was also $2,500 for additional features they requested mid-project, which I quoted separately and they approved via email. Total owed: $7,500.

I delivered the final product on January 20th. The client reviewed it, requested two minor revisions which I completed, and then their marketing director emailed me saying "Everything looks great, we'll get the payment processed this week." That was five weeks ago.

Since then, I've sent three follow-up emails and left two voicemails. The marketing director stopped responding. The owner's assistant told me the owner is "traveling" and to "be patient." I have a signed contract, email approval of the additional work, and written confirmation that the deliverables were accepted. What are my options?

You have a straightforward breach of contract claim with excellent evidence. Here's a structured approach:

1. Formal demand letter: Before legal action, send a formal demand letter via certified mail giving the client 10 business days to pay. This serves as both a practical step (many clients pay once they receive a formal demand) and a legal prerequisite in some jurisdictions. You can find templates at Breach of Contract Demand Letters.

2. California Freelance Worker Protection Act (SB 988): This is huge for you. SB 988, which took effect January 1, 2025, requires that:

• Hiring entities must pay freelance workers by the date specified in the contract, or if no date is specified, within 30 days of completion
• Written contracts are required for engagements over $250
• Hiring entities cannot retaliate against freelancers who assert their rights under the act

Under SB 988, if the client fails to pay on time, you're entitled to:

• The unpaid amount ($7,500)
• Double damages (an additional $7,500) if the failure to pay was willful
• Attorney's fees and costs
• Injunctive relief

The double damages provision is a powerful incentive for clients to pay. Mention SB 988 explicitly in your demand letter.

3. Small claims court: In California, you can file in small claims for up to $10,000. The filing fee is around $75, the process is straightforward, and you don't need a lawyer. Given your documentation (contract, email approvals, acceptance confirmation), you have a very strong case.

Been through this more times than I'd like to admit. The demand letter works surprisingly often — probably about 70% of the time in my experience. Clients who ghost on invoices often pay quickly when they realize you're serious about legal action.

A few practical tips:

• Send the demand letter via certified mail AND email so there's no question about receipt
• Include a specific deadline — "Payment must be received by [date]" is more effective than "please pay promptly"
• Mention that you'll pursue all available legal remedies including statutory damages — the double damages under SB 988 that the attorney mentioned is a real attention-getter
• If the client is a restaurant chain, they have a physical location and assets, which makes collecting on a judgment much easier than chasing a fly-by-night operation

I had no idea about SB 988 — that double damages provision is exactly the kind of leverage I need. $15,000 potential exposure should get their attention.

Quick question: my contract has a clause saying the website code remains my intellectual property until final payment is received. The client's new website is already live using my code. Does that give me any additional leverage? Could I theoretically send a takedown or require them to stop using my code?

That IP retention clause is significant leverage. If your contract clearly states that intellectual property rights don't transfer until full payment, the client is using your copyrighted work without a valid license. This gives you several additional options:

• Copyright infringement claim: Under the Copyright Act (17 U.S.C. § 501), using copyrighted work without authorization is infringement. Statutory damages for willful infringement can be up to $150,000 per work.
• DMCA takedown: If the site is hosted on a platform that responds to DMCA notices (most hosting providers do), you could theoretically file a takedown notice.

However, I'd use this as leverage in your demand letter rather than actually taking down the website. Mention the IP retention clause and the consequences of continued unauthorized use. The combination of the breach of contract claim, SB 988 double damages, and potential copyright liability creates a very compelling case for the client to simply pay the $7,500 they owe.

A word of caution: do NOT take down the website without first sending the demand letter and giving the client a reasonable opportunity to pay. Unilateral action could expose you to claims of tortious interference or breach of the implied covenant of good faith, even if you're technically within your rights. The demand letter first, always.

I've been freelancing for 15 years and I include a similar IP retention clause in all my contracts. I've only had to invoke it once, and just mentioning it in the demand letter resulted in payment within 48 hours. Restaurant chains especially can't afford to have their website go down — it directly affects reservations and online orders.

Going forward, I'd also recommend restructuring your payment schedule. Instead of thirds, try: 40% deposit, 30% at midpoint, 30% before launch. Never launch the site until final payment clears. It's the most effective way to prevent this situation entirely.

This is all incredibly helpful. I'm going to draft the demand letter tonight using the template and send it certified mail tomorrow. I'll reference SB 988, the double damages, and the IP retention clause.

WebDevVeteran — that payment schedule advice is gold. I'm definitely restructuring my process so the final payment is due before launch, not after. Lesson learned the hard way. I'll update this thread with the outcome. Thanks everyone.