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? [...]
Jeff on Call: The Fee-agreement Signer Left
February 25th, 2010
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 [...]
Jeff on Call: Where Is the Leverage in My Fees?
August 26th, 2009
Q: I read one of your articles on “Does Arranging Interview = Placement Fee?” I’m reading the book SEARCH AND PLACEMENT by Larry Nobles. He talks about the marketing cold call in which we present a qualified candidate to a company when we don’t know if they have openings. I understand the whole point is [...]
Jeff on Call: Recruiting From Former Clients?
August 19th, 2009
Q: How long must I wait before I recruit from a former client? The underlying question is, “What constitutes a former client?” Establishing a recruiter-client relationship usually involves five major steps: Receiving a job order. Clearing the fee. Transmitting the fee schedule. Sending out the candidate for an interview. Placing the candidate. Even if you do all [...]
Q: How will incorporating my business protect my assets? While the person claiming money or some other relief will undoubtedly name you personally, a corporation offers an additional layer of protection by virtue of its separate legal entity status under the law. Legally it is a separate person for liability purposes. Not necessarily the [...]
Jeff On Call: Is a Corporation Right for My Business?
July 24th, 2009
Q: Is a corporation right for my business? If you have multiple owners (other than spouses) or employees, there are distinct advantages. These legal entities exist because a properly established and maintained corporation is a separate person under the law. Therefore (at least in theory) the corporate assets and liabilities are not those of the owners [...]
Jeff on Call: What Can I Ask In a Reference Check?
July 17th, 2009
Q: What can I ask in a reference check? As many personal and professional questions as you like. Just be sure you have the consent of the candidate in writing. There are no specific restrictions, but of course don’t cross the line into asking about: Race Religion Sexual Preference Age Physical Characteristics Mental Health Marital Status Family Responsibilities As long as you have the [...]
Jeff On Call: How Long Must I Keep My Placement Files?
June 4th, 2009
Q: How long must I keep my placement files? Three years has worked well, and conforms to the universally known IRS tax record retention period. The federal, state, and local record retention periods range from one to five years. With so many legal and administrative rules, a three-year period should suffice for job orders, resumes, and any [...]
Jeff On Call: Partial-Payment Check = Full Fee?
May 28th, 2009
Q: Can I cash a partial-payment check and still collect the full fee? Usually, but not always. Welcome to the little-known area of first-year contract law called accord and satisfaction. There is usually only one case covering accord and satisfaction in the casebook, so most law students don’t study it in detail. A legal accord is the compromise [...]
Jeff On Call: Should I Sign a Client’s PSA
May 14th, 2009
Q: Should I sign a client’s PSA (Placement Service Agreement)? There’s some good news here. There is a common law rule that states: Any ambiguities in a contract will be construed against the maker. Common law rules are the common-sense, judge-made laws applied before we had statutes in America. They [...]
Jeff On Call: What Job Requirements Are Legally Discriminatory?
April 30th, 2009
Q: What job requirements are legally discriminatory? The shorthand way to analyze this is anything that isn’t objectively job related. There’s a whole industry of consultants and lawyers out there who will tell you that in expensive ways. But it’s the only working definition you need. Call our office if you run into a questionable [...]
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