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Legal Focus

 
28Oct

Prompt Payment Laws for School Bus Contractors

10/28/2020| Reference Number : 259.161| Legal, School Bus, Insurance/Risk Management | COVID-19 | | Return|

Many schools continue to resist payments to school bus contractors, with some schools ignoring invoices, rejecting invoices, or paying unilaterally reduced amounts. As the 2020-2021 school year is underway, non-payment issues continue, leaving many school bus contractors wondering what to do. Fortunately, many states have Prompt Payment Laws that make public entities liable for interest and attorney’s fees if the public entity does not promptly pay invoices from contractors. These laws vary from state to state in how they work and are not universally available for service contractors in all states. But for some transportation contractors, utilizing applicable Prompt Payment Laws may be the remedy that results in payment. Read further to see if the Prompt Payment Laws in your state might help you get paid.

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