Question 1

Can I charge interest on an unpaid invoice in California?

Accepted Answer

Yes. Cal. Civ. Code § 3287(a) entitles you to 10% prejudgment interest from the date the amount became certain or capable of being made certain, even without a contractual interest clause. A higher contractual rate is enforceable up to the statutory ceiling for non-consumer transactions.

Question 2

Does the Freelance Worker Protection Act apply to me?

Accepted Answer

If you are an individual or single-person LLC providing services in California for a contract worth $250 or more, the Freelance Worker Protection Act (Cal. Lab. Code § 970.5 et seq., effective January 1, 2025) likely applies. It requires a written contract, prompt payment, and creates statutory penalties (including double damages and attorney fees) for late or non-payment.

Question 3

What is the statute of limitations on an unpaid invoice in California?

Accepted Answer

Four years on a written contract or invoice (CCP § 337), two years on an oral arrangement (CCP § 339), and two years on an open book account. The clock starts at the date the amount was due, not the date the invoice was sent.

Unpaid Invoice Evidence Pack (B2B / Freelancer, CA)

Your unpaid invoice facts