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 [...]
Artices Tagged ‘askjeff’
Jeff on Call: File Trade Secrets
January 15th, 2010
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 [...]
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 [...]
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 [...]
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 [...]
Jeff On Call: How to Handle a Transgender Candidate
April 23rd, 2009
Q: I have a candidate who interviewed with my client and is going to receive an offer. She just told me that she is transgender and wants me to disclose that to the employer. I told her that I never disclose pregnancies, disabilities, religion, sexual preference, etc. and that I would not disclose this. [...]
Jeff On Call: What Internet Job Postings Are Illegal?
April 15th, 2009
Q: What Internet job postings are illegal? Internet recruiting has become a cyberspace minefield for recruiters. Official surfers are monitoring your interstate commerce. Recruiters recently received letters by Certified Mail from the “Deputy Special Counsel and Senior Trial Attorney” of the U.S. Department of Justice in Washington D.C., informing them that the DOJ had opened an [...]
Jeff On Call: Does Arranging Interview = Placement Fee?
April 2nd, 2009
Q: Does arranging the interview mean I am entitled to the placement fee? A: It’s usually better than just sending a resume. Legally, it’s the same (a “referral”), but factually it’s better because there’s often some evidence that you were involved. Proof that you did something to actually cause the hire can be used to budge a [...]
Jeff on Call: Do Resumes = Fees?
March 19th, 2009
Q: Does sending the resume mean I am entitled to the placement fee? Not without much more. In spite of my years of writing, speaking, and lawyering about setting up the placement for collection, the “resume myth” still persists. If sending a resume was the key to getting paid, I’d still be working a desk! I would [...]
Jeff on Call: Referral Periods
March 12th, 2009
Q: Do referral periods work? Very well! Just be sure you use one that is clear, protects properly, and is long enough. The following words are most effective: Our fee is due in the event a candidate we present is engaged to perform services, directly or indirectly, in any capacity by the client or any of its affiliated entities, [...]
Jeff on Call: Two Fees, One Candidate?
March 5th, 2009
Q: Can the employer be required to pay two fees for hiring the same candidate? What? Two fees for one placement? Absolutely! It happens around a half-dozen times a year in our office. We estimate employer applicant tracking systems are less than 10% effective. Job title differences, department differences, maverick managers, slow HR departments, software glitches, or other things [...]
Jeff on Call: Splitting Fees Without an Agreement
February 26th, 2009
This article is the second in a long-term series of Q&As, and I invite you to participate — email me directly at jeff@placementlaw.com with your question. (Keep in mind you should always consult with your own attorney. Nothing contained herein should be construed as legal advice. It is for your information only.) Q: Must I split [...]
Jeff on Call: Enforcing Candidate Acceptance Agreements
February 19th, 2009
Welcome to Jeff on Call…your opportunity to “Ask Jeff” a placement-related legal question. This article is the first in a long-term series of Q&As, and I invite you to participate — email me directly at jeff@placementlaw.com with your question. (Keep in mind you should always consult with your own attorney. Nothing contained herein should be [...]
Ask Jeff: Simple Fee Agreements
October 14th, 2008
Dear Jeff, What are your thoughts on using a really simple agreement for clients? One that simply states the parties involved in the transaction, the fee percentage to be paid based on compensation and payment terms if the company hire my referral. The end. No guaranteed, no what-if scenarios. Then the new client can make the requests, which I [...]
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