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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'legal'

Fees, Jeff's On Call!

Why You Should Never Say “But For” In A Fee-Fight



ask-jeff4

Hi Jeff,

Thanks for all the help you give through your column in The Fordyce Letter and elsewhere. I enjoy reading your advice in the Jeff’s On Call! column and would appreciate any help you could offer about a current situation.

I’ve been in personnel consulting business since 1983 and have some long-standing relationships with other colleagues and friends in our specialty area.

Currently, a situation has come up between me and one of these colleagues, Dean, and we are having difficulty resolving it so it is a “win-win” agreement.

Here’s the scenario:

Dean submitted a candidate back in August/September 2013 on a job order he took for a position at a company that we both do work for from time to time. The client did not hire the candidate at that time for that position. Dean’s submittal policy gives him credit for the referral for 12 months from the time of the initial referral.

Ask Barb, Fees

Do Splits Only With People You Know



Ask Barb

Dear Barb,

At the end of last year, I was contacted by a recruiter in New York for assistance on a search they were working. Bottom line is that I provided the candidate who was eventually hired by their client. My candidate started his new job and is doing very well.

Our agreement was that I would be paid 50% of the $32,500 placement fee when cash came in. It is 120 days later and I still have not been paid. The owner of the recruiting firm is not returning my calls. The recruiter I worked with offered to send me $2,500 toward what they owe me, which just adds insult to injury.

If I go to an attorney, I’ll end up losing a good portion of the monies collected. What would you advise me to do in this situation? I’m not a bank and want the $16,250 I’m owed. This is the first time I’ve done a split with another firm and it’s going to be the last.

Frank Z.

Austin, TX

Dear Frank,

Fees, Jeff's On Call!

Forget That Fee If You Sent Contact Info



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. A few years ago he began documenting them in a weekly collections column. Because of the importance of collections, Fordyce will periodically reprise the most common situations he addressed. The complete collection is here.

What Client Says:

There was prior contact with the candidate.

How Client Pays:

“Exclusive” contingency-fee job orders don’t exist. But even assuming you think you’ve got one, it doesn’t exclude direct contact with the candidate. So you’re truly trusting when you:

Fees, Jeff's On Call!

“He said,” “She said” Don’t Count In Fee Fights



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. Over the last 18 months, he’s documented one a week. Because of the importance of collections, Fordyce will periodically reprise the most common situations he addressed. The complete collection is here.

What Client Says:

You said you wouldn’t bill us if we hired the candidate.

How Client Pays:

The usual ruses are that you said this was a favor to the candidate; it was a level you didn’t work, or a discipline outside your field.

Industry News

Minimum Wage Rates Are Rising State by State



Money in hand

Money in handWhile efforts to raise the federal minimum wage are languishing, 34 states are considering or have taken action to raise their state’s minimum.

Congressional Democrats have been stymied in their effort to raise the federal minimum wage from the current $7.25 to $10.10 an hour over the next 30 months. With 13 states pegging their own minimum wage to the federal government’s, an increase in that rate would also increase the in-state rates.

Jeff's On Call!, Staffing

Can I Protect Myself From Being Temp-Napped?



ask-jeff4

Hi Jeff,

Thanks for providing such a great site.

I have a question regarding the validity of buyout clauses in temporary employment contracts. I own a small contingency staffing business in CA. I’m wondering whether a staffing firm can legally defend a buyout clause in their W2 offer letters or 1099 independent contractor contracts to prevent a candidate simply approaching a different supplier for the same client and engaging with them for their services in the same role?

We’ve had issues where the candidates once placed, negotiated a better deal with a competing agency, and simply switched to their employ instead. This is done with the blessing of clients who don’t seem to care that we were the ones who recruited the consultant in the first place. In general, client contracts are biased to favor the client, in that there is no restriction about receiving the same candidate from a different vendor.

If so, is there a specific form the buyout clause needs to take, i.e. specific wording that it should include, preclude?

Fees, Jeff's On Call!

Haunt Your Candidate When the Employer Claims Employee Referral



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. A few years ago he began documenting them in a weekly collections column. Because of the importance of collections, Fordyce will periodically reprise the most common situations he addressed. The complete collection is here.

What Client Says:

The hire was through an employee referral.

How Client Pays:

Employee referrals are among the easiest and most common fee-avoidance moves. Here’s how they do it:

Jeff's On Call!

Making You The Star Witness In Fee Collection Cases



Placements and the law logo

Ever since we developed the Fee Collection Star Witness Questionnaire, we’ve helped tons of recruiters collect their well-earned fees.

There’s a remarkable similarity in the cases. While various legal theories may be used, the judge or jury is the “trier of facts.”

Facts. That’s where the game is won or lost. The bottom line is you must show you earned the fee. This is quite different from merely showing you made the placement, since there is a perception in the mind of the general public (including judges and juries) that a few phone calls and a little luck make them happen. These folks are invariably salaried, so they relate to effort rather than results.

How-To

Oh No! The Hiring Manager Wants to Present the Offer



2 minute coaching logo

Editor’s note: Each month, Gary Stauble offers quick, easy-to-implement ideas on various subjects. This month’s topics have to do with when to start a search, your inner dialogue, and presenting offers.

Topic #1: Should you start a search without a signed agreement?

We were all likely taught that you should never start a search without a signed agreement. This makes good sense for many obvious reasons. However, what do you do if a hiring manager authorizes you to send people for a search but does not return your agreement promptly?

How-To

Avoid Deal Killing Conflicts of Interest When Recruiting Attorneys



fordyce-default

LawyerZoneDid you know that the number of law firms seeking lateral partners with an existing book of business or merger partners that help expand their footprint will be even greater in 2014 than in 2013? Did you know that the recruiting process for laterals and merger partners for most law firms is broken? Do you know how much the adage “haste makes waste” applies to the recruiting process for law firms? Do you know how time critical the recruiting process for law firms is?

If your firm has been hired by law firms in the past, you may find it increasingly difficult to be hired in the future if you do not have effective strategies to answer many of these questions.

A law firm may be motivated by many reasons to hire a search firm that specializes in identifying “laterals” — lawyers with a portable book of business — that are interested in joining a new firm or finding a merger partner. The law firm may want