Dispute between placement agency and client

[Midday]

I was placed by a company through a recruiting agency for a contract to hire position. I was on payroll of the placement agency. There were 2 other people on my team who had been working for the same agency at this company for over 6 months. After a few months the vice president of the company decided the fees for the recruiting agency were too high. The agency received a percentage based on our salary. The president of the company I was placed at decided to put us with another agency for a much lower fee.

The agency that placed us threatened to sue the company I was working for. The agreement between the agency and the company I was working for was that we remain on the agency's payroll until if/when the company decided to hire us and put us on their payroll.

Within a few days of moving to the new agency I was let go because of the threat of the lawsuit.

Now I am out of a job and the recruiting agency, for legal reasons I'm sure, is not responsive and apparently doesn't want to work me, or cannot, try to place me elsewhere,

Well over half of the jobs in my field are through the recruiting agency that placed me. Jobs that I now cannot be considered for.

Do I have any recourse against the company I was placed at?

 

[Michael Wechsler]

I'm not quite sure what happened. Are you saying that you used to work for Agency A and then moved to Agency B as a result of Company (the beneficiary of your work and place you worked) complaining that Agency A's fees were to great? This is what you seem to be saying and I don't understand how Company could be controlling your relationship of whom you work for other than saying that he will no longer work with Agency A. In short, it appears you were actually working for Agency A. The benefit of your work and the place you worked was Company, who wasn't actually your employer. Understanding this relationship is of critical importance.

In most instances which I've drafted and reviewed employment agreements for employment agencies like Agency A, Company is prohibited from hiring the independent contractors provided by Agency A (a) without permission from Agency A and some type of additional compensation, or (b) until the passage of some duration of time, usually at least 3-6 months.

Contractually, Agency A may have objected that you work for Company as a result of such an agreement agreement. As a result, Agency A probably threatened Company with a lawsuit. Unfortunately you sit out of work without an adequate remedy.

Question - what did you sign? You need to look at your agreement and see the limits of your ability to be employed by the Company, whether directly as an employee or as an independent contractor. Once you identify this, then you'll be able to determine your options. I am guessing that you probably couldn't sue either the company or the employment agency. I'm still not clear how and why you switched agencies and who may have led you to do this. As a result, I'm not quite sure what the best answer is without more details. Either way, good luck.