How to collect unpaid invoices in Ohio: lien windows, consent law, and Municipal Court

Ohio's wiretap statute (ORC 2933.52) prohibits the interception of wire, oral, or electronic communications without the consent of at least one party to the communication. The caller's own consent satisfies this requirement, making Ohio a one-party consent state for phone calls. Businesses and AI calling tools operating on their behalf can record Ohio collection calls without disclosing the recording to the customer. Verbal disclosure at the opening of the call is standard practice regardless of the legal requirement, and reduces any dispute about the purpose of the contact.

Ohio's mechanic's lien law (ORC Chapter 1311) imposes different deadlines depending on the type of property. For improvements to residential property -- a single-family home, duplex, or other owner-occupied residential structure -- the affidavit for mechanic's lien must be filed with the county recorder within 75 days after last furnishing labor or materials (ORC 1311.06). For commercial property, the window extends to 90 days. This split is one of the few features of Ohio lien law that catches contractors off guard when they move between residential and commercial work.

Ohio does not require a preliminary notice from prime contractors. Subcontractors and materialmen who lack a direct contract with the property owner must serve a Notice of Furnishing on the property owner within 21 days of first furnishing labor or materials to preserve their lien rights (ORC 1311.05). Failure to serve the notice means the subcontractor's lien is limited to the amount the owner owed the prime contractor at the time the owner received actual notice of the subcontractor's involvement -- a significant limitation on recovery.

Ohio Municipal Court small claims handles claims up to $6,000. Filing fees are typically $65 to $100. Cases are usually heard within 30 to 60 days of filing. Corporations may be represented by a non-attorney officer or employee in small claims; attorney representation is not required. For claims between $6,000 and $15,000, the civil division of Municipal Court applies. Amounts above $15,000 go to Common Pleas Court. Ohio allows prevailing parties to recover interest on the judgment at the statutory rate of 3% per annum, adjusted annually.

Ohio's statute of limitations on written contracts is 6 years (ORC 2305.06 as revised). For oral contracts and open accounts, the limit is 6 years as well (ORC 2305.07). The clock starts when the breach occurs -- when the invoice was due and payment was not made. For service businesses with repeat customers, this means a 2020 invoice can still be pursued through 2026, but practical recovery becomes difficult after 18 to 24 months as documentation and witness recollection fade.