Liquidated damages: what leaving early costs
Liquidated damages are the charge for ending a hauling agreement early, set in advance as a formula. In the haulers' published terms it is usually the average monthly bill multiplied by six, or by the months left if fewer.
What formulas do haulers use?
WM's published terms: if six or more months remain, the average of your last six monthly charges times six; if fewer remain, that average times the months left.[1]
Republic's published terms: the average charges from your last six invoices times the lesser of six months during the initial term, three months during a renewal term, or the months left in the current term. Republic's clause also says the amount is in addition to anything already owed.[2]
Older and local agreements vary. Some charge the full balance of the term. The early-termination calculator runs each formula with your numbers.
When doesn't it apply?
- The hauler's breach. Republic's formula applies to a customer termination for any reason other than the company's breach.[2] WM's terms include a service guarantee: if WM fails to perform and doesn't fix it within five business days of a written demand, you may end the agreement without penalty.[1]
- Refusing a consensual increase. WM's terms let you end the agreement without liquidated damages if you object in writing to a consensual price increase within 30 days of its notice.[1]
- Inside the notice window. Non-renewal at the end of the term isn't early termination at all.
Document service failures in writing, with dates and photos. A written demand that starts the cure period is what turns a missed pickup into an exit.
Are there legal limits?
In Maine, the charge for ending a small-container contract early may not exceed three times the current monthly charge.[3] Federal consent decrees in some markets limited termination fees too.[4] Elsewhere, liquidated damages are generally enforceable if they are a reasonable estimate of the hauler's loss, which is why the clauses recite that they are not a penalty. Whether yours is enforceable is a question for a lawyer in your state.
What should you ask for?
- A cap of three months' base charges, excluding fees, at any point in the term.
- No charge for ending the agreement because of a price increase you didn't agree to in writing.
- No charge if you close or sell the site, or if service fails twice in 90 days.
- No charge in a renewal term.
Questions buyers ask
- How much does it cost to cancel a Waste Management contract early?
- Under WM's published commercial terms, the average of your last six monthly charges times six, or times the months left if fewer than six remain. Your own agreement may differ.
- Can I leave without paying liquidated damages?
- Usually yes if you give notice inside the renewal window, if the hauler breaches and doesn't cure, or, under WM's terms, if you refuse a consensual price increase in writing within 30 days.
- Is there a legal cap on early termination fees?
- In Maine, for small-container contracts, the charge may not exceed three times the current monthly charge. Most states have no specific cap.
Sources
- Terms and Conditions for Commercial and Roll Off (Canada), WM. Read 2026-10-28.
- Customer Service Agreement: Terms and Conditions (Sacramento edition), Republic Services. Read 2026-10-28.
- Maine Revised Statutes, Title 38, §2112: Small container contract restrictions, Maine Legislature, Office of the Revisor of Statutes. Read 2026-10-28.
- Justice Department settles civil contempt claim against Republic Services Inc. (November 30, 2004), US Department of Justice. Read 2026-10-28.