Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'legal'

Jeff's On Call!

“Substantial Cause” Gets You the Fee When “But For” Is Why Bother



JeffOnCall logo

Note: Over the years, Jeff Allen has answered hundreds of placement law questions from recruiters, owners and others. One that comes up regularly is about the “but for” argument when a fee is in question. This Q&A is a classic, but it is so important an issue that we’re republishing it here. If you have a legal question, email Jeff Allen directly. We only publish questions with permission.

  Hi Jeff,

Jeff I really enjoy your column and I am learning a great deal about the in?s and out?s of the recruiting world. You are an invaluable asset for me!

Here is my situation: a recruiter sent a candidate’s resume to my client back in December. My client did not move on her (this was 2 1/2-3 months ago). She subsequently took another job. I called her not knowing that she had already been presented to my client . She is willing to talk about leaving the job she has only been at for a couple of months, and my client is now interested in talking to her. She did not interview with my client back when the other recruiter presented her, and she would not be talking with my client but for my efforts in tracking her down and convincing her to leave her current job.

Q: Does the fact that she took this other job in the interim negate the first recruiter’s claim?

Fees, Jeff's On Call!

The Candidate Can’t Waive Your Fee



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:

The candidate assured us you weren’t representing him.

How Client Pays:

There are three ways this attempted waiver of the fee occurs:

Fees, Jeff's On Call!

“Fee’s Too High” Is No Defense When You Have a Contract



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:

The fee’s too high.

How Client Pays:

Recruiters laugh or get angry at the “fee’s too high” position. But courts will arbitrarily reduce placement fees in the name of equity (fairness) unless there is a written, signed, or otherwise fully accepted contract introduced into evidence.

Industry News

Stakes Getting Higher for Independent Contractor Misclassification



misclassification tax chart

Even after years of increased enforcement, 1099 independent contractor (IC) misclassification is a common employment violation. And the risks associated with worker misclassification are only increasing as government agencies coordinate their enforcement efforts. Companies look to recruiters as employment experts, so it is important you know the basics of proper worker classification and stay on top of the latest enforcement efforts.

Why Misclassification Happens

When companies classify workers as independent contractors they don’t pay the employer share of FUTA, SUTA, and FICA taxes. They also don’t

Fees, Jeff's On Call!

No Proof Your Fee Schedule Was Accepted? You Lose



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:

The fee schedule wasn’t received.

How Client Pays:

You’ve probably wondered where all those undelivered emails and letters with fee schedules went.

Jeff's On Call!

What’s Wrong With Explaining the Fee? Everything!



ask-jeff2

Hi Jeff,

I must be your biggest fan (but must also share that status), and have read The Fordyce Letter for many years. You have great advice that has guided me through my career in recruiting. After 23 years doing it, I’d love you to answer a question.

A candidate I referred started today. We scheduled a phone interview for him with the client several weeks ago, but the client rep was a no-show.

After a week of trying to get that interview rescheduled along with trying to schedule another candidate, I received an email back from the client’s admin indicating that unfortunately, they had prior contact with both candidates.

Fees, Jeff's On Call!

Collecting When the Candidate Says “No Charge”



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:

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.

Industry News

Updated LI Terms: Content Is Yours and Don’t Spam



LinkedIn logo

LinkedIn logoFor most recruiters, LinkedIn’s updated user agreement that goes into effect Thursday doesn’t change much. Recruiter customers will still be able to search for candidates, download profiles, send InMails, and generally source as they have before.

The biggest change is that LinkedIn says you own the content you post on the site. That, and the simplicity and clarity of the wording of the updated terms of service, have earned LinkedIn kudos with one writer calling the changes “monumental for the industry.” More about that later.

For recruiters who use LinkedIn mostly or exclusively for sourcing, the impact of the updated TOS is minimal. The most significant addition is one that limits the use of information in member profiles. It bans sharing or disclosing “information of others without their express consent.” That’s a restriction that doesn’t apply to Talent Solutions customers, but it does to others. A recruiter who captures information from a public profile could, technically, be found in violation of the TOS, however policing such a casual use is practically impossible. More likely, the provision is there to backstop the prohibition against the wholesale downloading or scraping of member information, as was the case with HiringSolved.

Fees, Jeff's On Call!

Why Adam & Eve Won’t Get the Fee (and Neither Will You)



ask-jeff4

Hello Jeff,

As an avid follower of yours, I’m constantly learning the do’s and don’ts of executive search. Thank you for this vital information!

I can’t imagine this is the first question of this kind. But if anyone can help me, it’s you.

My client engaged me in an a VP contingency search for which I introduced a VP from a similar business. It took much convincing to ignite the interest of this candidate and my client was very pleased with the introduction. They interviewed my candidate and formed quite a quick bond — several meetings later, the VP candidate received a verbal offer. After much contemplation, the candidate felt she was not ready to leave her employer for a vertical move and she declined the position.

Here’s where it gets dicey: in lieu of accepting the job offer, my candidate offered up a referral — one of her subordinates who she felt was ready to advance into a VP role. So, in essence the VP candidate who I sent to my client, in turn directly referred a candidate to my client who they ultimately hired.

Fees, Jeff's On Call!

Fee Agreements End the ‘Free Sample’ Defense



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:

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.