What is the limit for Small Claims Court in New York?

In New York, the Small Claims Court limit for individuals and businesses is $10,000. Claims exceeding this amount must be filed in Civil or Supreme Court.

How long do I have to sue for an unpaid invoice in New York?

Under New York law, the statute of limitations for a breach of contract claim is six years from the date of the breach.

Can I charge interest on an unpaid invoice in New York?

Yes, if your contract specifies an interest rate. Without a contract, the statutory interest rate for judgments in New York is 9% per annum.

A TermScore is an AI-generated risk rating from 0 to 100 that evaluates the fairness and risk level of any legal document. A score of 86-100 means the contract is highly favorable, while 0-30 indicates dangerous terms you should walk away from.

What types of documents can TermScore analyze?

TermScore analyzes any legal document including freelance contracts, employment agreements, residential leases, NDAs, brand sponsorship deals, SaaS vendor agreements, and rental applications. Upload PDFs, Word documents, or images.

How much does TermScore cost?

TermScore offers a free plan with 3 scores per month. The Team plan is $15/month for 30 scores, and the Professional plan is $50/month for 500 scores with team collaboration features. One-time purchases are also available: a single score for $5 or a 5-pack for $15, with no subscription required.

Is my document data secure?

Yes. Documents are processed in memory and analysis results are stored encrypted. TermScore never shares your document data with third parties and you can delete your data at any time from your dashboard.

What are my legal rights if a client refuses to pay a freelance invoice in New York?

Legal Rights for Freelancers Facing Non-Payment in New York

If a client refuses to pay a freelance invoice in New York, you have the right to pursue payment through a formal demand letter, mediation, or litigation. You may file a claim in Small Claims Court for amounts up to $10,000 or initiate a breach of contract lawsuit for larger sums.

Understanding Your Contractual Foundation

Your rights are primarily defined by the written agreement between you and the client. In New York, even an email exchange can constitute a binding contract if it outlines the scope of work, payment terms, and consideration. Without a formal contract, you rely on the legal doctrine of 'quantum meruit,' which allows you to recover the reasonable value of services rendered.

Key Contractual Elements for Enforcement

Scope of Work: Clearly defined deliverables prevent clients from claiming the work was incomplete.
Payment Terms: Specific due dates and late fee provisions are essential for establishing a breach.
Governing Law: A clause specifying New York law simplifies jurisdiction issues.
Termination Clause: Defines what happens if the project is canceled prematurely.

Key takeaway: Always ensure your contract includes a 'prevailing party' clause, which allows you to recover attorney fees if you are forced to sue for non-payment.

Action Item: Review your current contract template today to ensure it includes a clear 'Late Payment' section specifying a percentage-based penalty.

The Escalation Process: Step-by-Step

When a client stops responding or refuses to pay, follow this structured escalation path to protect your legal standing.

Document Everything: Compile all emails, signed contracts, and proof of work delivery.
Send a Formal Demand Letter: Send a certified letter, return receipt requested, outlining the debt, the original due date, and a final deadline for payment.
Mediation: If the client disputes the work, consider third-party mediation to avoid the costs of litigation.
Small Claims Court: For debts under $10,000, file a claim in your local New York Small Claims Court.
Civil Litigation: For debts exceeding $10,000, consult with an attorney to file a formal complaint in Civil or Supreme Court.

Comparison of Legal Recourse Options

Method	Cost	Timeframe	Best For
Demand Letter	Low	1-2 Weeks	Initial non-payment
Small Claims	$15-$20	2-4 Months	Claims up to $10k
Civil Litigation	High	6-18 Months	Complex/High-value

Action Item: Draft a standard 'Final Notice' template that cites the specific invoice number and the date the payment became past due.

New York Specific Legal Protections

New York has specific statutes that protect independent contractors. The 'Freelance Isn't Free Act' (applicable in NYC) provides significant protections, including the right to be paid within 30 days of work completion unless otherwise agreed. It also provides for double damages and attorney fees if a client willfully fails to pay.

Requirements for Legal Action

Proof of Agreement: A written contract or digital trail of the agreement.
Proof of Performance: Evidence that the work was delivered according to the agreed-upon specifications.
Proof of Non-Payment: Records showing the invoice was sent and remained unpaid past the due date.

Key takeaway: If you are based in New York City, familiarize yourself with the Freelance Isn't Free Act, as it significantly shifts the leverage in your favor during payment disputes.

Action Item: Check if your client is based in NYC, as this may grant you additional statutory protections under local labor laws.

Preventing Future Payment Issues

The best way to handle non-payment is to prevent it before the contract is signed. Use clear milestones and require a deposit of 25% to 50% upfront for all new clients. This mitigates your risk and ensures the client is financially committed to the project.

TermScore can automatically analyze your freelance contracts to identify missing payment terms, weak termination clauses, and lack of interest penalties, ensuring your agreements are legally robust before you start work. By catching these issues early, you protect your revenue and minimize the need for future litigation.