Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'legal'

Jeff's On Call!

Jeff’s On Call!: E&O Insurance Advice

by on Nov. 22, 2010


fordyce-default

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

Keep reading »
3 Comments

Business, Industry News

Georgia Enforces Non-Competes

by on Nov. 17, 2010


Violation-of-Contract4

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.

Keep reading »
1 comment

Fees

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

by on Oct. 15, 2010


law_gavel

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!

Keep reading »
No comments

Jeff's On Call!

Jeff’s On Call!: Corporate Raiding

by on Oct. 13, 2010


fordyce-default

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.

Keep reading »
1 comment

Social Media

Social Media + Legal Reality & Perspective = Caution for Recruiters

by on Sep. 23, 2010


social-media

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?

Keep reading »
No comments

Uncategorized

American Employment Law Applies in Foreign Countries

by on Jun. 14, 2010


fordyce-default

Several years ago, I was unemployed in London after moving to the U.K. to marry a U.K. citizen.

I quickly noticed an obvious difference in the employment process I encountered in London during my job search as compared to the process on job searches I had conducted in the United States. As a recruitment professional (with major American corporations) all of this seemed very odd and strange to me; I intuitively thought somehow American federal employment law must (or at least should) certainly apply (even in the U.K.) since I was being interviewed and screened for (or seeking to interview with) American firms.

I vowed someday to find out about the international reach and applicability of American employment laws.

After all, as an American living in Britain, I did not have the inherent right to criticize or challenge the employment practices of British firms, I am not British!

However, as a native born American I possess the inalienable right to question, criticize, and challenge the employment practices and behavior of my country’s firms (no matter where they operate)! And I have the absolute right as an American citizen to hold them accountable for their employment behavior even in the U.K. since it was different than what I had experienced in the States.

Keep reading »
2 Comments

Uncategorized

Choosing, Using, and Enthusing a Collection Agency, Part 2

by on Jun. 8, 2010


fordyce-default

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 bills promptly are used to receiving demand letters for payment. Some are shrewd, some are sloppy, but more are sophisticated.

It doesn’t take long to get a lot of practice when you stop paying your way.

Keep reading »
No comments

Uncategorized

Choosing, Using, and Enthusing a Collection Agency, Part 1

by on Jun. 7, 2010


fordyce-default

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 enthuse a collection agency.

In many cases, you’ll have no choice.

Chances are you won’t be able to find a competent lawyer who’ll collect your fee on a contingency (percentage) basis. That doesn’t mean the lawyer won’t accept it on a contingency basis.

Keep reading »
No comments

Uncategorized

The Recruiter’s Liability for Wrongful Hiring: Injury BY the Candidate, Part 2

by on Apr. 29, 2010


fordyce-default

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) injures another, will render the employer liable. As with misrepresentation, the issue becomes whether the employer “knew or should have known” about the dangerous propensities of the candidate.

This isn’t vicarious liability — it’s direct. And yours is too. The victim can name you for your negligent “consulting.” In some states he must — you’re an “indispensable party.” The employer won’t forget it paid your five-figure fee either.

Keep reading »
1 comment

Uncategorized

The Recruiter’s Liability for Wrongful Hiring: Injury BY the Candidate, Part 1

by on Apr. 28, 2010


fordyce-default

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 means “The employer is responsible for the wrongs of the employee on the job.” No corporate defense lawyer argues about that — only about whether the “wrong” occurred “within the course and scope of employment.”

There is no limit to the number of “course and scope” fact patterns that can arise.

Was the act “authorized?” Was it “ratified” (impliedly accepted)? Was it “reasonable?” Was it for the “employer’s benefit?” Was it done during “working hours?”

The traditional “employment agency” had no difficulty here. If the fee was paid by the “applicant,” it was no great legal leap to show it was acting on his behalf. Even if the fee was paid by the employer, the alignment was with the applicant. But “clients” don’t see “applicants” — they see “candidates.” They’re judging a beauty contest, and you’re the modeling agency.

The alignment — your liability — runs to the employer.

Keep reading »
No comments