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Straight Talk for the Recruiting Profession


Articles tagged 'legal'

Jeff's On Call!

Jeff’s On Call!: Employer PSA Limitations



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This week’s inquiry comes from Michael Evdemon II:

Jeff,

I am a veteran recruiter for 2 ½ decades in the insurance industry. During that time, I’ve benefited tremendously from your writing, legal knowledge, and improvement of our profession.

My concern is that many of the employer PSA’s (placement service agreements) mandate that the search is only for the specific position. This cuts our effectiveness and ability to make additional placements by at least half — before we even pick up the phone or send an email.

It also undercuts what a professional search firm should be doing for a client. The recruiter is prevented from presenting highly-qualified candidates that have been determined to be an asset to the client. Why would a quality search firm be denied to inform an organization like that?

From your writing, it seems this is legal as long as the exclusion is job-related. But what can we do about it?

Thanks for your anticipated reply!

Sincerely,

Michael

Jeff's On Call!

Jeff’s On Call!: Job Postings and Gender Discrimination



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This week’s inquiry comes from Tom Skobel:

Hello Jeff Allen!

I have read and found to be very interesting the article you wrote April 15, 2009, entitled, “Jeff On Call: What Internet Job Postings Are Illegal?” I happen to be a college student studying Human Resources Management and find labor practice laws to be interesting, and I enjoy seeing them in play in real life….After reading what are considered to be illegal job postings, I discovered, what I believe, may be an illegal job posting. I discovered the job posting in question on a reputable job search website. The title reads: “Seeking Full Time FEMALE PERSONAL ASSISTANT for Busy Executive, ready to train and start very soon. ” In addition, one of the traits reads, “Recent college graduate – no more than 5 years out of college.”

From studying Labor Law at college and reading what you have listed in your well-thought out article, I believe this job excludes males from applying for this position — gender discrimination, which is prohibited by Title VII of the Civil Rights Act of 1964. I would like to get your expert opinion on this matter.

Once again, I enjoyed reading your article. I found your article to be both enlightening and easily understandable. I look forward to read more of your work.

Sincerely,

Tom

Fees, Industry News

Staffing Firms Rally to Fight Off Disclosure, Fee Limits Bill



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A coalition of labor unions and immigrant workers organizations is pushing a bill in Massachusetts to overhaul the state’s staffing industry.

If it’s adopted — almost half the state Legislature is listed as sponsors — the bill would impose a number of administrative obligations on staffing firms, and potentially limit some fees while raising costs. It exempts most professional workers, but it would apply to a broad range of workers, including nurses, clerical, blue collar, and similar. Violators could be fined.

Proponents, who were contacted but didn’t respond, are positioning the legislation as a “temp workers right to know bill,” highlighting provisions requiring staffing firms to inform employees for whom they’ll be working, how much they’ll be paid, where they’ll work, and what they’ll be doing.

“No such law currently existing in other states”

While on its face benign, other provisions of the bill limit some fees and essentially end temp-to-hire conversion fees. It puts a damper on the practice of shopping good candidates, by prohibiting candidate referrals without job reqs. Out-of-state staffing firms could be closed out of placing workers in Massachusetts unless they had an in-state office.

“There is no such law currently existing in other states,” says Stephen Dwyer, general counsel for the American Staffing Association. “It is more sweeping and more harmful than any, bar none.”

Fees, Jeff's On Call!

Jeff’s On Call!: Start Date Payment



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This week’s inquiry comes from Helen Stefan:

Hi Jeff:

I really love the column you are doing for TFL. I have found this a particularly helpful post and have often referred to it for educational purposes.

I could really use your expertise. Recently, I began working with a new company and made certain they endorsed our fee schedule which stated our terms (amount due on candidate start date). The hiring manager endorsed the terms and sent them back. A placement has resulted. Upon receiving the formal offer letter from this hiring manager, I was told that under no certain terms would we be paid on “start date.” In fact she argued that her corporation did not pay recruiting invoices until 90x following start date and that we would have to take this up with corporate. Having never experienced this before, I thought this might be something you would be able to help with. Do I have any recourse other than to send this to collections?

Best Regards,
Helen Stefan

Fordyce Forum, Jeff's On Call!

Podcast: Jeff Allen and the History of Recruiting



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I recently had a candid conversation with Jeff Allen, who is the author of our “Jeff’s On Call!” column here on FordyceLetter.com a regular contributor to The Fordyce Letter monthly print publication through his “Placements and The Law” column. He is also an accomplished author — he has written 24 books, including bestsellers How to Turn an Interview into a Job, The Complete Q&A Job Interview Book, and the revolutionary Instant Interviews.

Jeff knows a thing or two about the third-party recruiting world, and we discussed the history of The Fordyce Letter (which is celebrating its 40th anniversary this year) as well as the evolution of this profession from its humble beginnings in employment agencies and with the APF (applicant-pay-fee) model. He also shared some of his thoughts on recruiting success, making placements, and the importance of relationships and networking — not just with candidates and clients, but amongst your peers as well. You’re sure to learn something during this podcast — Jeff is a goldmine of information and one of the most generous people in the world of recruiting.

Jeff's On Call!

Jeff’s On Call!: E&O Insurance Advice



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This week’s inquiry comes from Norman Lieberman (comment on the Fee Collection and Client Bankruptcy post from last week):

Hi Jeff:

As a successful 29-year veteran independent recruiter, I have been following and buying your sage advise for decades. Your articles, books and materials have helped, and saved me, too many times to remember over the years. One thing is for sure, you saved me a fortune in attorney bills. So a big Thank You is due.

I recently read an article that said E&O Insurance, specific to our industry, may not protect recruiters as once thought.  Apparently some E&O policies have exclusions that are broad and hurtful to recruiters.  Also, the article warns not to compare premiums, but instead compare the Insurance companies’ reputation for denying coverage.  Even better is to have an attorney compare the policies for us.

The article scared me because I may be falsely sleeping well thinking that I am fully covered.  But, in fact, my E&O insurance may not be covering me as I thought.

So Jeff, is it caveat emptor or how do we best protect ourselves?  Where does one find out an insurance company’s reputation?  How can we best protect ourselves and be confidant that our E&O is doing what we need and had intended?

Thank you,

Norman Lieberman

Business, Industry News

Georgia Enforces Non-Competes



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On November 2, 2010 Georgia voters approved a stunning 180-degree change in their state Constitution. The one-sentence ballot measure (Amendment 1) was simple enough:

Shall the Constitution of Georgia be amended so as to make Georgia more competitive by authorizing legislation to uphold reasonable competitive agreements?

By voting “Yes”, a majority of Georgia voters upended the state’s strict prohibition against enforcement of employment agreement “non-competes.”  In doing so, they breathed life into the Official Code of Georgia, Sections 13-8-2.1 and 13-8-50 to 59.

Fees

The Employer Lawyer’s Worst Nightmare: The 15 Contract Crushers



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Employer-generated recruiting agreements (placement service agreements or PSA’s) are now replacing traditional fee schedules at almost every large employer.  They are minefields filled with landmines ready to explode once you sign them.  We get many inquiries and complaints about PSA’s, but until this November, there has been no guidance on how to negotiate them successfully.

The November print issue of The Fordyce Letter will change that forever.  Jeff Allen uses his unique experience as a recruiter, HR manager, and the leading lawyer for our industry to help you get what you want in a PSA without losing the search assignment.  He will even answer subscriber questions about PSA’s at no charge.

This special analysis will ONLY be available for print subscribers and will instantly pay for your subscription and pay dividends for you as more and more clients insist on using their PSA’s.

Level the playing field, collect your well-earned fees, and do not get caught violating a PSA!

Subscribe now, and don’t miss it!

Jeff's On Call!

Jeff’s On Call!: Corporate Raiding



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This week’s inquiry comes from Dave Glaser:

Dear Jeff,

Thank you so much for your great column and advice over the years.  I am a long time subscriber to Fordyce and have used your office successfully in the past.

In running a small search firm of 6 people, we occasionally run into problems where companies are not too thrilled about us contacting their employees.  We specialize in the high net worth/wealth management area, so often we are recruiting talent from large accounting firms and financial service firms.  We have been contacted via email and phone calls with threats of law suits for raiding their firms, enticing their staff with other employment, etc.  Can you please expound on where we stand from a legal perspective?

Thank you!

Dave Glaser, President
ECG Resources, Inc.

Social Media

Social Media + Legal Reality & Perspective = Caution for Recruiters



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As search professionals and recruiters, we are learning more about the benefits of leveraging social media and integrating it as a trusted recruiting tool in identifying talent for our clients. It should be a critical component to sourcing combined with other proven methods. After all, our clients and candidates use it and so should we. I see social networking becoming more of a key component to recruiting as we can reach out to more people using social networks. It is also critical that we understand the powerful opportunity it presents for corporations to engage in real-time dialogue with customers, stakeholders, and candidates, and use it similarly with our clients as well.

Using social networks can give us a competitive edge in identifying and engaging the best candidates available, however, these sourcing options also bring potential legal pitfalls that we need to be aware of. For example, what happens when a candidate has revealed protected information via their social profiles?