Trouble Collecting My Fee

My client hired someone after 5 months without telling me according to my contract they owe me the whole fee. The applicant left the job 3 months later because the job was misrepresented. I lowered my fee to 10% of the annual fee to make the client someone happy and now they have told me they only want to pay me 10% of the applicants earnings.This is absurd. Do you have any suggestions. I may have to take legal action. This is not a good client to mine it is first placement I made with them.

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Comment by Jane Roth on November 1, 2012 at 2:43pm: My fee is 10% of the annual salary no 10% of what the girl earned in 3 months.

Comment by Jerry Albright on November 1, 2012 at 2:47pm: Jane I think we're just going to have to look at this differently.

She worked 3 months. Even if there was no other controversy here - it would still be the simple fact that her earnings during her first year equaled "X". Your fee is based on that (now that we're looking at this in retrospect).

While on the front end, with an ethical client, your fee would have been based on the starting salary - at this point it is not.

Take the 10% of what she earned and the lessons learned.

Comment by Jane Roth on November 1, 2012 at 3:09pm: I have to agree with you. I think I would rather get a bit of money than 0 money the fee would have been 4,500-

I will have to take $1,125. They got her resume from her than the applicant brought her own resume and they said they did not know she came from me because the app resume did not have my name on it.

There are 2 sides to the story. I am just annoyed at them for 2X not paying me that is all.

I will not work with them ever after this. Thanks Jerry. I am in business travel staffing- I place mostly Travel Agents. I have to get into something else soon.

Comment by Suzanne Levison on November 1, 2012 at 3:43pm: This is the client from !@#$~lesson learned, I think~it happens, I would take my chances in small claims, move on. Those that conduct business this way are more often than not in small claims over other business matters as well.

Comment by Jane Roth on November 1, 2012 at 4:08pm: Can small claims collect my fee that is my question now.Thank you Suzanne.

4.10.2012 Jane

Comment by Steve N Odell on November 1, 2012 at 4:25pm: If you win you get a judgement. Then you have to collect separately. I understand if they don't pay you can get the sheriff to take their stuff. For me that was many years ago when I went through one of those and I am not qualified to give legal advice just a recollection of the process. For those above the $5k limit I use Michelle Morgan with Shackelford, Melton, McKinnley in Dallas area. She specializes in employment matters.

Comment by Steve N Odell on November 1, 2012 at 4:34pm: That's the organization that I would recruit from. I would get my money and call to every travel agent employed there and new hires too as they come. They are obviously a bad place to work and it's probably easy pickings.

Comment by Bill Schultz on November 1, 2012 at 5:10pm: I don't see what is so shady about the placement. She presented, they hired. By paying anything, they are admitting to everything. Take him to small claims (as long as you have a signed fee agreement- if not, cut your losses). It will be you vs. them. No lawyers allowed. It's 10k in Cali Not sure about other states.

Good Luck!

Comment by Mitch Sullivan on November 5, 2012 at 3:23am: I agree with Jerry.

Take whatever they offer you and move on. Your real payment has been learning that the company isn't worth trying to recruit for.

BTW...the best way to start the process of determining if a company is worth recruiting for, is to ask for part of the fee upfront. Even though they'll probably say no, it enables you to have a grown-up conversation about your respective attitudes towards recruiting.

Comment by Chandra A. on March 19, 2013 at 3:44pm: How did this work out for you, I am sure I am about to embark on a similar quest for my placement fee from an AGENCY. I am hoping that it will not be the case, but just in case, it is always nice to see how things worked out for others and the path that they took to get results.