Welcome to The Fordyce Letter:
Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.
What Client Says:
The candidate assured us you weren’t representing him.
Articles tagged 'legal'
It Doesn’t Matter What the Candidate Says
by 
Jeff Allen
on Apr. 1, 2013
Jeff Allen
on Apr. 1, 2013
But the Candidate Said the Placement Was Free
by Jeff Allen
on Mar. 25, 2013
Jeff Allen
on Mar. 25, 2013
Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.
What Client Says:
The candidate said you wouldn’t charge anything.
How Client Pays:
This is one of those naive defenses only a foolish fee-fighter would allege. Yet it’s among the most popular, because candidates fall all over their paychecks to help.
Roundup: Legal Developments You Should Know
by 
A. Bernard Frechtman Esq.
on Mar. 22, 2013
A. Bernard Frechtman Esq.
on Mar. 22, 2013
Note: This article is not intended as legal advice. In all instances the reader is cautioned to consult with legal counsel when utilizing this information.
A part of the professional obligation of every person engaged in the staffing industry is to try to be current in the happenings of the legal world as it affects staffing industry activity. Here are some of the recent highlights. I welcome all comments and questions, and will try to reply promptly.
California’s Commission Contract Law
Effective January 1, 2013 a new California law requires that employees entering into employment agreements which involve compensation, even in part, on a commission basis must be provided a written contract detailing how the commission is computed and paid. Employers must provide the employee with a signed copy of the commission agreement, and obtain a signed acknowledgement of receipt of the copy. Not all commission and bonus arrangements are covered and it is not clear if the new law requires employers to implement written agreements with present employees having unwritten or verbal commission agreements. Best advice is to consult an attorney to get the answer.
A Busy EEOC in 2012
The most frequently filed charges were for retaliation (37,836), race (33,512) and sex discrimination,
Beware: What Happens in Your Office, No Longer Stays in Your Office
by 
Barbara Bruno
on Mar. 20, 2013
Barbara Bruno
on Mar. 20, 2013
Dear Barb:
You asked me to share my story for this column but for obvious reasons, I’m going to sign this anonymous. We are involved in a discrimination lawsuit because someone in our reception room took a video on how our receptionist was answering her phone,and treating candidates who came to our office. We are accused of treating women and certain groups of people differently.
We are a light industrial, clerical staffing firm and also place engineers. Obviously, there is a different process between an unskilled light industrial candidate, and a degreed, experienced engineer. We found it extremely suspicious that this person was videotaping activities in our reception room.
This has cost our firm thousands of dollars and we’re far from any type of settlement. There were some very negative comments put on various social media sites, which will have future job seekers and clients possibly question our reputation. We have done nothing wrong; this has become a nightmare for our team and our company. Our receptionist ended up quitting. Not sure what advice you would give to other owners, I would not want this to happen to another owner.
Anonymous
Dear Anonymous:
Want That Fee? Get An Agreement In Writing
by Jeff Allen
on Mar. 18, 2013
Jeff Allen
on Mar. 18, 2013
Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.
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.
Head Off the ‘Free Sample’ Defense With a Fee Acceptance Offense
by Jeff Allen
on Mar. 11, 2013
Jeff Allen
on Mar. 11, 2013
Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.
What Client Says:
We thought the referral was a free sample.
How Client Pays:
Some fee-avoiders think that the more outrageous the lie, the more likely it will be believed.
For this bizarre “defense,” the hiring authority simply says that he believed the fee schedule was for “future placements.” So you gave a freebie to prove all that rootin’ tootin’ recruitin’ really works.
You must set the record straight before the sendout. You must date and personalize your fee schedule. You must get a client signature or at least nurse an e-mail acceptance.
It’s just not realistic to expect an “un-client” to admit a fee schedule was even received, let alone accepted.
Documenting receipt and acceptance of a fee schedule by either a signature or e-mail reply will avoid this nonsense forevermore!
You Get Paid ‘Cuz You Caused the Hire
by Jeff Allen
on Mar. 4, 2013
Jeff Allen
on Mar. 4, 2013
Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out– of your well-earned fee.
What Client Says:
There was a mistake about who referred the candidate.
How Client Pays:
Of course, these client “mistakes” are always in their favor.
How-To Get Paid When the Client Referred Your Candidate
by Jeff Allen
on Feb. 25, 2013
Jeff Allen
on Feb. 25, 2013
Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out– of your well-earned fee.
What Client Says:
We didn’t hire, but referred the candidate to someone else.
How Client Pays:
Since the client isn’t in the placement business, you’ll be unable to show that it intended to charge a fee. The recipient will deny that it even knew who you were up to the time of the hire.
The way to get paid is to:
- Check your fee schedule for any words that might be used to hold the client liable.
- Get the candidate to tell you how the contact with the recipient occurred.
- Invoice both, and wait patiently for 30 days (no more). Then if you don’t receive payment from either the client or the recipient, ask for a written explanation of why. Do not attempt to explain your position, send any documentation, threaten or take any action until you receive that written explanation.
The biggest mistake recruiters make is to turn over their arguments and evidence too early.
The biggest fees they get is in nursing that documentation out of the parties. Then having them point fingers at each other!
When the Client’s PSA Wants Liability Insurance, Just Say NO!
by Jeff Allen
on Feb. 22, 2013
Jeff Allen
on Feb. 22, 2013
Dear Jeff:
I am a regular reader of the Fordyce Letter and especially enjoy your Jeff’s On Call! column. Your information is very interesting and helpful to our industry. You provide excellent advice, experience, and insight into various employment law issues!
Below is a paragraph from a good client’s contract. As you can see, they are asking for general liability insurance. I asked them about my exposure as a recruiter. You will see their response below. It is my understanding that general liability insurance will not provide the coverage they indicate. What are your thoughts?
10. INSURANCE RECRUITER shall maintain in full force and effect, at their own cost and expense, and in a form acceptable to us general liability insurance in the amount of $1,000,000.00 per occurrence, general aggregate limit of $2,000,000.00. This insurance shall be kept current and in force for the term of this Agreement. All policies must be written through an insurance company with an overall A.M. Best Rating of B+ or better. RECRUITER must provide a certificate of insurance evidencing compliance with the above requirements upon request.
We are looking for recruiting firms to carry insurance in the amount of $1,000,000 per occurrence to cover issues from their recruiting of an individual. For instance, if you recruit and we hire someone that you knew or should have known had a propensity towards violence and then the employee you recruited goes on a shooting spree, then you have insurance to cover the negligent hiring. Does that make sense? It is more along the lines of employment liability. We have had recruiters with other types of coverage also.
Thank you!
Howard Lehman
Hi Howard,
It’s a pleasure assisting you and our JOC readers across the placement plain!
When you ask me about your exposure as a recruiter, I answer a little differently than your client. I answer in four syllables: “UN-LI-MI-TED.”
A Little Embellishment Won’t Hurt if the Candidate Still Has the Job
by Jeff Allen
on Jan. 7, 2013
Jeff Allen
on Jan. 7, 2013
Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.
What Client Says:
You misrepresented the candidate’s qualifications.
How Client Pays:
By continuing to employ the candidate, the client is waiving (relinquishing) its right to allege a misrepresentation (or even just a breach of the placement contract).
Invariably, the story is that:
- You negligently didn’t discover some falsified degree or job on the candidate’s resume, or
- You intentionally concealed something you knew about this falsification or discovered independently.
But by that continued employment of the candidate, the employer is then estopped (stopped or prevented) from asserting the misrepresentation.
Of course, that assumes:
- The candidate wasn’t fired within a month or so after the misrepresentation. If he wasn’t, the employer impliedly liked him or her anyway. The employer can’t have it both ways.
- There was a material misrepresentation (something job-related that directly induced the employer to hire).
There’s so much misrepresentation in the hiring process anyway, so rarely do inflated credentials, deflated skeletons ore mere inaccuracies constitute grounds for termination. Besides, the client has to deal with the next candidate’s misrepresentations! (Statistically 80% of the time.)
So truly, this is a full fee scenario!
