If the Candidate’s Still Working, You’re Collecting

Jeff Allen Collection TipEditor’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.

What Client Says:

You misrepresented the candidate’s qualifications.

How Client Pays:

By continuing to employ the candidate, the client is waiving (relinquishing) its right to allege a misrepresentation (or even just a breach of the placement contract).

Invariably, the story is that:

  • You negligently didn’t discover some falsified degree or job on the candidate’s resume, or
  • You intentionally concealed something you knew about this falsification or discovered independently.

But by that continued employment of the candidate, the employer is then estopped (stopped or prevented) from asserting the misrepresentation.

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Of course, that assumes:

  • The candidate wasn’t fired within a month or so after the misrepresentation. If he wasn’t, the employer impliedly liked him or her anyway. The employer can’t have it both ways.
  • There was a material misrepresentation (something job-related that directly induced the employer to hire).

There’s so much misrepresentation in the hiring process anyway, so rarely do inflated credentials, deflated skeletons ore mere inaccuracies constitute grounds for termination. Besides, the client has to deal with the next candidate’s misrepresentations! (Statistically 80% of the time.)

So truly, this is a full fee scenario!

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.