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:
We hired the candidate through a temporary service.
How Client Pays:
This move has several variations, but the usual ways it’s done is:
- Recruiter refers candidate.
- Client interviews candidate.
- Client likes candidate.
- Client gets fee allergy.
- Client calls friendly temp service for cure.
- Temp service is friendly.
- Candidate is hired by temp service.
- Candidate is dispatched to client on temp assignment.
- Client pays temp service for an agreed time (usually 30 days).
- Client exercises “conversion option” to hire temp (candidate) direct at a low (or no) fee.
The fee key is proving you were the source of the hire. That means proving:
- The candidate was hired by the temp service at the request of the client. (If the documents show the candidate was already registered with the service, be very suspicious.)
- The temp service knew about the scam.
- The temp service didn’t previously dispatch temps for similar jobs with the client.
- The temp service acted pursuant to a consistent conversion policy.
Proving these things can be done. Filing a lawsuit helps. Particularly when it includes:
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- Breach of contract (against the client).
- Inducing breach of contract (against the temp service).
- Interference with contractual relations (against the temp service).
- Conversion (theft – against both).
- Fraud (against both).
- Conspiracy (against both).
As to conversion, fraud, and conspiracy, the candidate can also be named. He will get very nervous, then ve-r-r-ry angry at the prospect of unlimited punitive (to punish) and exemplary (to set an example) damages (money to be paid).
Your basic employer lawyer usually reacts by preparing a mutual release of all claims, selling you on signing it in exchange for paying your full fee.