Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'legal'

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

Uncategorized

But For Using “But For,” You Would Have Collected Your Fee. So Don’t!



Placements and the law logo

The single biggest contingency fee collection defense is the so-called “but for” rule. Yet recruiters and their lawyers constantly use it as a legal rationale to get paid. When you start a fee collection with, “But for my referral . . .” it will likely end with, “. . . farewell five figure fee.”

Today, I’m going to explain why you should remove the words “but for” from any collection attempt.

Jeff's On Call!

The Payback Attack to Employee Payback Agreements



ask-jeff4

Jeff –

I’m really benefiting from your writing and thanks for taking time out of your busy schedule to answer my question.

I’m working with a candidate who accepted a position with a company that I didn’t submit him for. About a month later, this network engineer told me that the job was terrible and he is only doing network cleanup and documentation. Then he tells me that the agency that placed him made him sign a contract that stated that if he left the job before the three month guarantee period that he would need to pay the agency the lost fee.

This was a new one for me in my 18 year career – I’ve never heard this. Is it enforceable?

Regards,

David Cohen
Agency owner in NJ
Fees, Jeff's On Call!

Do You Know Where Your Sendouts Are Working Today?



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:

Another recruiter was responsible for the placement.