If You Mention ’30 Days’ You Might Just End Up With 30 Days

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’ll pay you that percentage of the candidate’s first monthly paycheck.

How Client Pays:

Check your fee schedule or the client’s PSA (placement service agreement). Watch for references to:

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  • A 30-day guarantee. Even a clearly-stated replacement guarantee can backfire if the fee is not unequivocally based on projected first-year compensation.
  • Rebilling after a month. Anticipating an additional fee based on actual compensation after the candidate is employed for 30 days is inviting a 30-day period for computation.
  • Jobs where fees are customarily charged on a monthly basis. Office support, industrial, and other support occupations shouldn’t be identified on the fee schedule.
  • A temporary fee tied to the first 30 days. That will likely be all you’ll receive.
  • Invoices being payable within 30 days. Payment terms don’t belong on a fee schedule. They belong on an invoice after a placement is made. Even “Net 30 Days,” discount terms or monthly service charges should be carefully separated from the fee schedule terms.

When there’s an ambiguity in a document, it’s construed (interpreted) against the party who created it. As if that weren’t enough, you have the burden of proof by a preponderance of the evidence.

Annualized fees will be due if you just remove anything 30-days or monthly from your documents!

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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