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Who do I owe the agency fee to for this hire?

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baa

Junior Member
What is the name of your state? Oregon
I want to know who I am obligated to pay an agency fee to when I asked two search firms to find me an employee. Agency A sent me the candidate's resume 1 day before Agency B, but I hadn't yet responded to it. In the meantime, my co-worker in the HR department, spoke with Agency B, and scheduled me to see this candidate. I liked him and would like to hire him, but want to be fair. Both Agencies believe the fee is due to them. In the past I have seen candidates on a first come, first serve basis in regards to the resume arrival, but one agency tells me that that is the legal approach, and the other says law favors the Agency that set up and confirmed the interview with both parties? Who is correct and does it matter at all that Agency B is the one the candidate specifically authorized to send the resume to our company, even though he signed general, non-exclusive representation agreements (upon first registration) with both agencies? Does it matter that the candidate in question, wants only Agency B to represent him now and going forward. A speedy reply is requested, as I would like to hire him and don't want to be sued, nor pay two fees.
 
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seniorjudge

Senior Member
baa said:
What is the name of your state? Oregon
I want to know who I am obligated to pay an agency fee to when I asked two search firms to find me an employee. Agency A sent me the candidate's resume 1 day before Agency B, but I hadn't yet responded to it. In the meantime, my co-worker in the HR department, spoke with Agency B, and scheduled me to see this candidate. I liked him and would like to hire him, but want to be fair. Both Agencies believe the fee is due to them. In the past I have seen candidates on a first come, first serve basis in regards to the resume arrival, but one agency tells me that that is the legal approach, and the other says law favors the Agency that set up and confirmed the interview with both parties? Who is correct and does it matter at all that Agency B is the one the candidate specifically authorized to send the resume to our company, even though he signed general, non-exclusive representation agreements (upon first registration) with both agencies? Does it matter that the candidate in question, wants only Agency B to represent him now and going forward. A speedy reply is requested, as I would like to hire him and don't want to be sued, nor pay two fees.


What do the written contracts say about your questions?
 

baa

Junior Member
in response to ?

Written contracts from both agencies say a fee is due if we hire their candidate, but nothing with regard to a dispute between agencies and who owns the candidate. They both claim that we would not know of candidate but thru their efforts. Candidates contract with both agencies only giveagencies authorization to submit their resumes to client companies. We owe a fee, if we hire him, but to whom?
 

seniorjudge

Senior Member
baa said:
Written contracts from both agencies say a fee is due if we hire their candidate, but nothing with regard to a dispute between agencies and who owns the candidate. They both claim that we would not know of candidate but thru their efforts. Candidates contract with both agencies only giveagencies authorization to submit their resumes to client companies. We owe a fee, if we hire him, but to whom?
There is no dispute between the agencies.

There is a dispute between you and the agencies.

Since both sent you an employee, you owe them both.

But if you do not like this answer, then hire a lawyer and file an interpleader action. That means you deposit the dough in the court treasury and tell the court, "Hey, it's not mine...but you decide which of these agencies gets it."

Then the court will either decide which agency gets it OR that since both sent you an employee, you owe them both.
 

Some Random Guy

Senior Member
Depends on how much you want the employee and how much work the agencies do for you.

Either don't hire him or get written agreement from the agency you are not paying not to sue over the matter. If you hire multiple people per year through them, I doubt they will put up much of a fight if you threaten to never do business with them again. (Esp agency A which only forwarded a resume and did no other work).
 

baa

Junior Member
Do others agree my best option is not to hire or pay 2 fees? I don't think I'll be sued by either agency, but I wasnt to do the right thing and I'd like to know if there is a commonly agreed upon solution for ethical practice among agencies when this happens. I'm sure it's not unusual for this to happen with non-exclusive and contingency hires commonplace.
 

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