Deposit limits · Louisiana

Louisiana Contractor Deposit Rules (2026): No Work in 45 Days Can Mean Fraud

Louisiana sets no cap on contractor deposits, but taking payment and doing no work for 45 days can show intent to defraud. From La. R.S. 14:202.1.

By Clamp ResearchReviewed by Emmanuel ForgeChecked against the official codesUpdated Oct 20, 2026

Short answer: Louisiana has no cap on contractor deposits. But under the residential contractor fraud law, intent to defraud can be inferred when a contractor takes payment and then does no work for 45 days or longer, unless the contract gives a longer period. Penalties rise with the amount, up to 20 years and $50,000 at $25,000 or more, with mandatory restitution.

Not legal advice. General information from each state's statutes, checked Oct 20, 2026. Local rules and the facts of your contract can change the answer; for a specific contract, ask a lawyer licensed in your state.

Clamp's payment edit sheet for payment 1 of 5, a deposit set to a fixed $1,000 (5.7% of a $17,698.76 proposal), due when signed

Set the deposit

Clamp's proposal payment schedule for a $17,698.76 bathroom remodel: a $1,000 deposit due when signed, stage payments of $7,124.52, $5,678.11 and $3,542.15 due when demolition, tile and carpentry start, and a $353.98 final payment at walkthrough

Every payment tied to a stage

The deposit and payment schedule in the Clamp app: a $1,000 deposit due when the customer signs, then every other payment tied to a stage of the job. $1,000 on this $17,699 bathroom is under every state's cap. Sample data.

What the law says

“Fails to perform any work during a forty-five-day period of time or longer after receiving payment”
Louisiana Revised Statutes, residential contractor fraud La. R.S. 14:202.1(A)(1) (official code)

The maximum deposit, worked

Deposits in Louisiana
Contract price	How it works out	Maximum deposit
$8,000	No cap; no work for 45 days after payment can show fraud	No cap
$25,000	No cap; no work for 45 days after payment can show fraud	No cap
$60,000	No cap; no work for 45 days after payment can show fraud	No cap

Penalties and the contract

Penalties

Under $1,000: up to 6 months and $1,000. $1,000 to under $5,000: up to 5 years and $3,000. $5,000 to under $25,000: up to 10 years and $10,000. $25,000 or more: up to 20 years at hard labor and $50,000. Restitution is mandatory.

Written contract

A home improvement contract must be in writing with the total price, and no work can begin before every party signs (La. R.S. 37:2159).

Louisiana deposit questions

Is it a crime for a Louisiana contractor to take a deposit and not start?

Doing no work for 45 days or longer after taking payment lets a court infer intent to defraud, unless the contract set a longer period.

Compare other states

Texas: disaster repair North Dakota: abandonment after payment Florida: over 10% starts a clock All 50 states and DC

How we checked

We read each state's statute or licensing rule on the official legislature or agency site and quote it as written. Where the official site would not load, the row says so and names the copy we read. A state stays "still being checked" until we have read the full rule; we never mark it "no cap" before then. Last checked Oct 20, 2026.

This guide explains what the statutes say. It is not legal advice; for a specific contract, ask a lawyer licensed in your state.