Ohio late fee law

Set by formula or published periodically rather than fixed in statute, so it must be looked up for the period in question.

No fixed number: when money becomes due on an instrument, account, settlement, verbal contract, or judgment and no written contract provides a rate, the creditor is entitled to interest 'at the rate per annum determined pursuant to section 5703.47' - the federal short-term rate (as determined by the tax commissioner, rounded to the nearest whole percent) plus 3%, set annually for the following calendar year. Statute text verified.

Parties may stipulate up to 8% per annum (ORC 1343.01(A)), but ORC 1343.01(B) exceptions largely eliminate the cap for B2B deals: any rate may be agreed where the original principal exceeds $100,000, and business loans to partnerships, LLCs, sole proprietors, joint ventures and other business entities are exempt regardless of amount (unless secured by personal household goods or wages). A written-contract rate controls over the statutory rate under 1343.03.

public+private-construction

State agencies must pay proper invoices within 30 days (ORC 126.30); late payments accrue interest at a monthly rate equal to 1/12 of the annual rate prescribed by ORC 5703.47. Ohio's construction Prompt Payment Act (ORC 4113.61) requires contractors on public and private projects to pay subcontractors/material suppliers within 10 days of receiving payment, with 18% per annum interest plus potential attorney fees for violations. No prompt-payment statute covers general private commercial (non-construction) invoices.

No Ohio statute specifically regulates flat late fees on ordinary commercial invoices; agreed late fees are generally enforceable subject to Ohio's liquidated-damages/penalty doctrine (must be reasonable, not a penalty). A written contract rate of interest displaces the statutory 1343.03 rate. Verify fee-specific caselaw with counsel.