Collection Tip: Getting Your Full Fee When The Client Claims Temp Hire

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.

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What Client Says

We hired the candidate as a temporary employee.

How Client Pays

Look at your fee schedule. See how it says (or conveys) employment will be “permanent” or “regular.” Can a temp assignment avoid its terms?

One trap you’ll probably miss is the annualized compensation. Somewhere clearly in your schedule, you must state something (consistent with the rest of the terms) like:

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While projected annual compensation is used to determine the fee, anticipated or actual duration of the candidate’s tenure is not a factor in computing the amount due.

Then again, you might just have a rubber stamp made that reads: Life is a temporary assignment.

Fee schedules, employer-generated PSA’s (placement service agreements), e-mail boilerplate, invoices, and all other communication to clients, should contain consistent language that decouples the fee from the tenure of the candidate.

That will eliminate the “temp defense.”

More than thirty-five years ago, Jeffrey G. Allen, J.D., C.P.C. turned a decade of recruiting and human resources management into the legal specialty of placement law. Since 1975, Jeff has collected more placement fees, litigated more trade secrets cases, and assisted more placement practitioners than anyone else. From individuals to multinational corporations in every phase of staffing, his name is synonymous with competent legal representation. Jeff holds four certifications in placement and is the author of 24 popular books in the career field, including bestsellers How to Turn an Interview into a Job, The Complete Q&A Job Interview Book and the revolutionary Instant Interviews. As the world?s leading placement lawyer, Jeff?s experience includes: Thirty-five years of law practice specializing in representation of staffing businesses and practitioners; Author of ?The Allen Law?--the only placement information trade secrets law in the United States; Expert witness on employment and placement matters; Recruiter and staffing service office manager; Human resources manager for major employers; Certified Personnel Consultant, Certified Placement Counselor, Certified Employment Specialist and Certified Search Specialist designations; Cofounder of the national Certified Search Specialist program; Special Advisor to the American Employment Association; General Counsel to the California Association of Personnel Consultants (honorary lifetime membership conferred); Founder and Director of the National Placement Law Center; Recipient of the Staffing Industry Lifetime Achievement Award; Advisor to national, regional and state trade associations on legal, ethics and legislative matters; Author of The Placement Strategy Handbook, Placement Management, The National Placement Law Center Fee Collection Guide and The Best of Jeff Allen, published by Search Research Institute exclusively for the staffing industry; and Producer of the EMPLAW Audio Series on employment law matters. Email him at jeff@placementlaw.com.

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