In yesterday’s Part 1, we discussed the first two steps involved in collecting fees. Today we continue with the remaining four steps: 3. USING A COLLECTION AGENCY Most collection agencies view commercial (business) debts as difficult to collect. Unlike consumer (personal) ones, they lose the effectiveness of their major weapon — fear. Businesses who don’t pay their [...]
Choosing, Using, and Enthusing a Collection Agency, Part 2
June 8th, 2010
Choosing, Using, and Enthusing a Collection Agency, Part 1
June 7th, 2010
If you’ve ever tried to use a collection agency to collect a five-figure placement fee, don’t blame the agency for not collecting. It’s not their bag. It’s like asking a podiatrist to perform brain surgery. But if your fee — temp or perm — is less than $7,500, you should know how to choose, use, and [...]
Yesterday in part one I discussed the first three ways to know if your “hiring authority” is hiring — and an authority at all. Today we discuss the final three ways: 4. The Weakling Most recruiters take the inflated term “hiring authority” literally. This causes them to forget, completely, that they’re literally “consultants.” Middle-management supervisors are undoubtedly among [...]
“Getting a job order.” “Obtaining a search assignment.” The very words imply that you need to talk someone into something. Or even worse — out of something. The object is writing up the almighty JO. Some offices even have quotas for them. Contests. Awards. But are they hot? Are they even real? Let’s look at a few other reasons [...]
Yesterday in part 1, we discussed “traditional indirect liability,” which covered who is responsible for the wrongs of the employee on the job. Today we focus on negligent hiring and strict liability. 2. Negligent Hiring Employers are now being constantly sued for negligent hiring. This means the act of hiring an unfit employee, who then proximately (directly) [...]
On Monday and Tuesday we covered the known area of liability for injury to the candidate. Now we start another two-day series that goes into the unknown territory of liability when he injures someone else. 1. Traditional Indirect Liability One of the most fundamental principles of law is the Latin phrase respondeat superior. As it has developed, it [...]
Today’s article continues with five more examples of injury TO the candidate, and tomorrow we start a 2-part series on injury BY the candidate. 3. Intentional Infliction of Emotional Distress No negligence here — you have to show the conduct was intentional — “outrageous.” In fact, some states call the tort outrage. It’s not difficult for courts to [...]
When it comes to wrongful hiring by employers, you can not afford to be anything but concerned. This is the hottest area of the law, and only luck has kept our industry away from the flame. That’s right, luck. The major cases have involved candidates hired through other sources. The employers had no recruiter to skewer. We don’t [...]
Ask Jeff: The ‘But For’ Placement Rule
April 20th, 2010
Q: I’m trying to collect a placement fee using the “but for rule”, and the client is just coming up with more excuses to avoid payment. Would you please explain what the rule is, and how it works? A: So sorry you’re getting ensnared in this “but for rule” business. It’s really the “but for EXCEPTION,” [...]
Jeff on Call: The Fee-agreement Signer Left
February 25th, 2010
Q: Your Fee Collection Guide always comes in handy! I recently collected full fee on a sticky situation I’d been dealing with late last year. My fee agreements are open-ended. They don’t expire. Is the fee agreement still valid if the person who signed it at the “client” company has left? [...]
Placements and the Law
February 19th, 2010
“Lift-outs” are otherwise known as corporate raids and are hazardous to your legal health, especially for retained practitioners. The search business isn’t passive anymore. The people you want are employed. Maybe not “happy” (whatever that means) but at least satisfied enough to heat their seat. There’s only one practical way to find them: Calling them on the [...]
Jeff on Call: The Rainmaker’s Followers
February 18th, 2010
Q: Jeff, I think this may be at least a two-part question. First, once you recruit a “rainmaker” or leader of a company and you know this candidate will want to bring other staff (the successful placement may even be based on whether other staff will follow), what is the proper/legal approach the recruiter should follow [...]
Jeff on Call: They Decided Not to Hire
January 27th, 2010
Q: The client signed a “retingency” agreement. The search begins on September 2008 and goes until October 15, 2009, more than one year later, when the client suddenly informs us after 16 candidate submissions and 10 interviews, that they have decided to not hire for the position. Facts: There were two interested and qualified candidates they [...]
Jeff on Call: When the Spouse Is Hired
January 24th, 2010
What if there is a signed ‘retingency’ agreement (retainer fee paid with a refund clause in case of non-performance) that goes just fine in the case of the retained position being filled and fully paid, but the candidate’s wife is also hired for another position within the organization, but not paid for? Facts: Client is a [...]
Jeff on Call: File Trade Secrets
January 15th, 2010
Q: How does the court system protect my client and candidate files as trade secrets? If you have a valid employment agreement (only a 20% chance), there are two sure ways: Injunctive relief to stop unauthorized use. The federal and state courts use procedures known as a temporary restraining order (TRO) and preliminary injunction to immediately stop [...]
Jeff on Call: Employment Practices Liability Insurance
January 13th, 2010
Q: Do I need EPL (Employment Practices Liability) insurance? A: EPL is very expensive coverage, but it is essential if you employ recruiters, have more than one office, place temps or contractors, or are an absentee owner. It covers costs of defense (the “duty to defend”), has the indemnity (claim coverage) provision, and a deductible. It [...]
Jeff On Call: More on Cold Calls, Harassment
November 5th, 2009
Q: This question relates to your October 26 post on Cold Calls & Defining Harassment. Are the rights of companies the same as the individual candidate you mention in this post? I ask in the context of an outside search firm marketing into, or attempting to recruit from, a corporation. Can the company claim they [...]
Jeff On Call: Cold Calls and Defining Harassment
October 26th, 2009
Q: Given the ease at which recruiters can now find passive candidate information online, when does a cold-call to a candidate at their place of work constitute either harassment or an invasion of privacy (or something else)? Must the candidate declare the solicitation unwanted (as in sexual harassment) for the recruiter to become liable for [...]
The Allen Magic Collect-A-Fee System, Part 2
October 21st, 2009
Editor’s note: Yesterday, in part 1 of this 2-part article, attorney Jeff Allen shared the first five tips for collecting more fees. The article concludes below. 6. Send your invoice the day employment commences. Earlier is too aggressive, while later risks the employer questioning the hire or obtaining the candidate’s cooperation to avoid the fee. 7. [...]
The Allen Magic Collect-A-Fee System, Part 1
October 20th, 2009
The Allen Magic Collect-A-Fee System was actually introduced over 30 years ago. It was unveiled at a California Association of Personnel Consultants convention on the day I was voted in as its General Counsel. The seminar was recorded, and over the next two decades, became the most popular title in the EMPLAW Audio Series. Since [...]
Jeff on Call: Soliciting Employees and the Law
October 15th, 2009
Q: Can you let me know what the legal ramifications are of a company’s request to stop soliciting their employees? Do they have legal recourse if I continue to solicit them? Does it matter if the solicitation is in the form of an email or phone call? And does it matter if an email solicitation [...]
Jeff on Call: Recruiting and Non-Competes
October 8th, 2009
Q: Can I be held liable for recruiting an individual out of a company where there is a non-compete and placing them with a competitor? I know that it is the candidate who signed the non-compete, but can I get in trouble for my role as a recruiter? A: Thanks for this dynamite question! I [...]
Libel and Slandor: Liability for Candor
October 1st, 2009
The recruiting business is a business of words…discussing competitors, checking references, passing information back and forth, and always comparing one employer or employee to another. It’s unrealistic to expect objectivity when your fee is on the line. But far more than your fee is on the line; you risk unlimited personal liability for words that injure [...]
Jeff On Call: Errors and Omissions Insurance
September 10th, 2009
Q: What do I need to know about E&O (Errors and Omissions) Insurance? The most important thing to know is that it means what it says: if you erred or omitted something during a placement, there might be coverage. In other words, “ordinary, garden-variety, negligence.”
Jeff On Call: Can I Re-recruit a Placed Candidate?
September 3rd, 2009
Q: Can I re-recruit a placed candidate? Yes. There is absolutely no statute or case anywhere prohibiting this. However, there are three intentional torts lurking in the background: An intentional tort is a non-contractual civil wrong. If you are found liable for committing it, the law allows unlimited punitive and exemplary damages to be awarded in the [...]
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