Clause 5 of 10 · Updated

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

  1. Terms and Conditions for Commercial and Roll Off (Canada), WM. Read 2026-10-28.
  2. Customer Service Agreement: Terms and Conditions (Sacramento edition), Republic Services. Read 2026-10-28.
  3. Maine Revised Statutes, Title 38, §2112: Small container contract restrictions, Maine Legislature, Office of the Revisor of Statutes. Read 2026-10-28.
  4. Justice Department settles civil contempt claim against Republic Services Inc. (November 30, 2004), US Department of Justice. Read 2026-10-28.