Please see below for a summary of payment terms in the United States and the various industries across which payment term legislation appears. You can also download a summary of all United States payment terms by clicking the button below.
The Prompt Payment Act is federal law governing payment terms from government agencies. In general terms from the government are limited to 30 days, with 7 days for meat and poultry, 10 days for dairy and perishables, and 15 days for ‘ast pay’ terms aimed at SMEs.
The act also covers government construction projects requiring payment to the prime contractor within 14 days and further payments to the sub-contractors by 7 days after this payment.
All but 15 US states have also enacted laws covering prompt payment in private construction projects.
United States Department of Agriculture – ‘Packers and stockyards act 1921’ requires livestock sold on a grade-and-yield basis to be paid by the end of the next business day after the final purchase price is determined. Live poultry obtained under a poultry growing arrangement must be paid for by the close of the 15th day following the week in which the poultry is slaughtered.
Idaho Commodity Dealer Law requires a commodity dealer to pay for agricultural commodities upon delivery or demand by the owner or agent, but not later than 30 days after delivery, unless otherwise agreed to by the parties in writing.
The Federal Milk Marketing Order sets out payment timelines for milk associations and producers across areas of the United States. In general partial payments to dairy producers are on the 26th or 27th of the month with final payment by the 15th of the month following.
California is not covered by federal milk law and the Californian Federal Milk Marketing Order has a schedule of payments through cooperatives to producers with partial payments by the last day of the month and the final payment by the 19th of the month following delivery.