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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'legal'

Jeff's On Call!

Instant Falloff? Worry About Protection, Not Collection



ask-jeff4

Hi Jeff,

I am a big fan of yours, and have followed the Jeff’s On Call! column for years.

We just just heard something very disturbing, and need your help.

Our client is in in Pennsylvania, and we made two placements with them in the past. We were paid with no problems.

Our most recent hire is a controller who lives here in Florida and was expecting a moving company to arrive tomorrow for relocation to her new position. She just received an email from our client telling her that they lost a big contract, and decided not to have her start with them. She is furious, as you might expect.

Ask Barb

Are Your Recruiters W-2 or 1099?



Ask Barb

Dear Barb,

I have my recruiters all working on a 1099 and at a recent conference I heard you say that they may not qualify as an independent contractor. Can you explain further?

Stephen Z.
New Orleans, LA

Dear Stephen,

Talk this over with your accountant and go to IRS.gov and print out the various requirements which must be met in order for someone to qualify as a 1099 employee. If they do not meet 100% of the qualifications listed, you need to deduct payroll taxes. Better safe than sorry.

Barbara J. Bruno, CPC, CTS

Fees, Jeff's On Call!

You Said You Were Doing This As a Favor



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse 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:

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

How Client Pays:

Jeff's On Call!

How to Help Your Criminally-Challenged Candidates



Placements and the law logo

About that “new” EEOC policy about candidate’s criminal record in pre-employment screening. In a sentence, it means:

File a charge of discrimination if a candidate isn’t hired (or is fired) for having committed some non-job-related crime.

If you’re doing contingency-fee search, your existing policy in a sentence is:

Race to place.

That means:

  • If it’s not job-related, don’t consider it.
  • If it has no bearing on the job duties (like a conviction for embezzlement of a bank veep candidate), don’t disclose it.
  • No third-party criminal background checks.

But how about a new policy for you too? How about one to help criminally-challenged candidates resume productive, placement-fee-generating careers?

Jeff's On Call!

Promissory Estoppel: The Way You Get Paid When the Client Changes Things



ask-jeff4

Hi Jeff,

I have learned a great deal from your “Jeff’s On Call!” column and also from your National Placement Law Center Fee Collection Guide. The column is certainly a place where rookies and seasoned veterans alike can get useful tips for the search industry.

I am a veteran recruiter with over 20 years experience. I have done both retained and contingency search.

We have finished an extensive (3+ month) contingency search on an exclusive basis. During the search, the client sent names for us to screen and recruit. Of course one of these candidates landed the position after we screened, recruited, referred, and set up the initial interview. The client has offered to pay only a partial fee since they sent us the name of the candidate.

Unfortunately, I believe this will end up being hashed out in court. Will it matter what the reason is for the sending of the names to our firm? What legal theories does this case center on?

Fees, Jeff's On Call!

Ask For An Explanation, But Send Them Only An Invoice



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:

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

Jeff's On Call!

What Happens to My Fee When My Client Buys the Candidate’s Employer?



JeffOnCall_logo

Hi Jeff,

You have helped me collect fees twice in the past, and the Jeff’s On Call! column has greatly contributed to our success. This is just indispensable.

I have a question that really needs answering, and would appreciate your help.

A client of mine who has hired about 6 to 8 sales reps from me in the last few years gave me a search for a sales person when I ran into him at a trade show in Las Vegas. I placed the sales manager who gave me the search.

I scheduled 8 interviews and he liked one candidate best. They are scheduled to meet for a second interview with the VP of sales again soon. The candidate currently works for a competitor and the word on the street is my client may be purchasing them as soon about the same time as the interview. It has been a rumor for months.

The sales manager told me he did not know if they would pay my fee if they buy the company because the sales rep would be an employee of their company. I told him I didn’t know the legal ramifications, but as far as I am concerned I set up the interviews and will be due a fee.

Fees, Jeff's On Call!

The “Other Division” Fee-Avoiding Forward Pass



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 candidate was hired by another division.

How Client Pays:

This is a “forward pass” situation — sendout to A, hire by B.

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,