If Your PSA Has a 30, You Might Find the Client Plays Dirty

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Jeff Allen Collection Tip

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:

  • 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!