Service Marketplace Critical Provisions
Essential clauses for gig economy and on-demand service platforms
Independent Contractor Classification
AB5 / Misclassification RiskClearly establish service providers as independent contractors, not employees. Critical for California AB5 compliance and avoiding costly misclassification lawsuits.
Background Check Disclosures
FCRA ComplianceDisclose background check requirements and obtain proper FCRA authorization. Include adverse action procedures for service provider screening.
Insurance Requirements
Liability ProtectionDefine required insurance coverage for service providers. Specify minimum liability limits, vehicle insurance (if applicable), and proof of coverage requirements.
Service Quality Standards
Platform ReputationEstablish minimum service standards, rating systems, and consequences for poor performance. Balance quality control with independent contractor autonomy.
Cancellation & No-Show Policies
Revenue ProtectionDefine cancellation windows, fees, and no-show policies for both service providers and customers. Balance flexibility with protecting provider compensation.
Payment & Fee Structure
FTC TransparencyClearly disclose platform fees, service provider payouts, payment timing, and any deductions. Required for FTC compliance and avoiding deceptive practices claims.
Standard Legal Provisions
Essential clauses required in all Terms of Service
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