Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Fees, Jeff's On Call!

Pay You? But The Candidate Said I Didn’t Have To


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Jeff Allen COllection Tip

Editor’s Note: Every Monday Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.

What Client Says:

The candidate assured us you weren’t representing him.

How Client Pays:

There are three ways this attempted waiver of the fee occurs, depending on when it occurs:

  1. If the candidate is still at the interviewing stage, the client can casually state something like, “You know we’re not willing to pay a fee for hiring you.” The candidate then simply says nothing or states that no fee should be due anyway.
  2. If the candidate is at the offer stage, the client can state something like, “Of course, we didn’t expect to pay a fee for hiring you.” I am only aware of one candidate who objected to this in my entire career. He was recovering from the effects of sodium pentothal due to some root canal work just before the interview.
  3. Then after the acceptance, few recruiters will risk wedging themselves between an employer and employee. There’s no legal reason not to, though. If you’re in business just to lower the jobless rate, fine. But a candidate who isn’t hired (or is fired) because a recruiter hasn’t been paid has rights only against the client.

A candidate who tries to tell you that he is dismissing you from representing him doesn’t understand contract law. His “consent,” “willingness,” or “cooperation” have no relevance whatsoever on the client’s liability for a fee.

Liability for a full fee — to you!

More than thirty-five years ago, Jeffrey G. Allen, J.D., C.P.C. turned a decade of recruiting and human resources management into the legal specialty of placement law. Since 1975, Jeff has collected more placement fees, litigated more trade secrets cases, and assisted more placement practitioners than anyone else. From individuals to multinational corporations in every phase of staffing, his name is synonymous with competent legal representation. Jeff holds four certifications in placement and is the author of 24 popular books in the career field, including bestsellers How to Turn an Interview into a Job, The Complete Q&A Job Interview Book and the revolutionary Instant Interviews. As the world’s leading placement lawyer, Jeff’s experience includes: Thirty-five years of law practice specializing in representation of staffing businesses and practitioners; Author of “The Allen Law”--the only placement information trade secrets law in the United States; Expert witness on employment and placement matters; Recruiter and staffing service office manager; Human resources manager for major employers; Certified Personnel Consultant, Certified Placement Counselor, Certified Employment Specialist and Certified Search Specialist designations; Cofounder of the national Certified Search Specialist program; Special Advisor to the American Employment Association; General Counsel to the California Association of Personnel Consultants (honorary lifetime membership conferred); Founder and Director of the National Placement Law Center; Recipient of the Staffing Industry Lifetime Achievement Award; Advisor to national, regional and state trade associations on legal, ethics and legislative matters; Author of The Placement Strategy Handbook, Placement Management, The National Placement Law Center Fee Collection Guide and The Best of Jeff Allen, published by Search Research Institute exclusively for the staffing industry; and Producer of the EMPLAW Audio Series on employment law matters. Email him at jeff@placementlaw.com.