Your Sendout Suddenly Became a Temp? Here’s What You Do

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:

1. Recruiter refers candidate.
2. Client interviews candidate.
3. Client likes candidate.
4. Client gets fee allergy.
5. Client calls friendly temp service for cure.
6. Temp service is friendly.
7. Candidate is hired by temp service.
8. Candidate is dispatched to client on temp assignment.
9. Client pays temp service for an agreed time (usually 30 days).
10. 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:

1. 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.)
2. The temp service knew about the scam.
3. The temp service didn’t previously dispatch temps for similar jobs with the client.
4. 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.