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In this issue readers
will find:
A Case for Errors and Omission Insurance - Robert P. Style, Esq.
Certification Immersion Class Schedule - 2007/2008
Certification Immersion Classes Bring 500 CPCs and CTSs to Staffing Industry
Fast Fact - Women Outnumber Men in Graduate School
Frequently Asked Questions - Advice for a Rusty Test Taker
Relevant Research: Growth in Staffing Service Demands of Seniors and Boomers
Message from the Editor
About The NAPS Credential
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Volume 2, Number 9
November 2007
Most of you have heard, at some time or another, about the wisdom a purchasing an errors and omissions
insurance policy. Judging from the number of staffing firms that do not have such insurance, however,
it appears that many of you do not understand the risks you run every day in your business and, more
importantly, that one misstep can be so costly as to spell the end of your business. Even winning a
"malpractice" case can be prohibitively expensive. Remember, in the United States, each party pays
its own legal fees, and in some of the scenarios below, it would not be unusual for these fees to
run into six figures.
What are some of the cases which would typically be covered by an E&O policy?
The candidate lies on the resume. Whenever I ask a group of recruiters whether they believe that more
than half of their candidates lie on their resumes, invariably almost everyone in the room raises their
hands. Yet, almost all recruiters refer the resume, in one form or another, to their clients. Suppose
the candidate has lied about work experience, educational background or dates of past employment, and
your client states that had it known the truth about the candidate, it would never have hired him or
her. So, the client states, you know that the resume most likely is untrue in some respect or another,
you are the "expert" in this business, and you never told me that the resume you sent me is more likely
than not untrue. Why shouldn't you compensate me for being defrauded like that?
Add to that the fact that the NAPS Code of Ethics states, in effect, that you are responsible for
the accuracy of information you pass on about a candidate unless you disclaim such responsibility.
(To find sample contract language disclaiming such responsibility, take a look at the NAPS/ASA Model
Recruiting Agreement at www.recruitinglife.com.) It is not at all clear that a court would find you
liable under the above facts. What is clear is that employers are more aggressive than ever in
pursuing recruiters for damages in these cases, and that the cost of legal fees turns even a victory
into an expensive defeat.
You fail to disclose a candidate's criminal record. A common complaint to which an E&O policy would
respond is that you failed to disclose a previous embezzlement by your candidate, who then embezzled
from your client. In these types of cases, it is not unusual for the amount embezzled, and thereby
sought from you by your client, to run into the hundreds of thousands of dollars. I have not seen court
cases that discuss whether a recruiter has an obligation to check criminal records, in the absence of
a contractual agreement to do so, and you may well win the case, but again at great expense. There is
one federal court case which held that a jury could find a recruiter liable to its candidate's
co-worker who was raped by the candidate, after the recruiter failed to accurately disclose certain
aspects of the candidate's prior conviction for rape.
Your actions cause the candidate to lose his or her current job. Most typically, that would happen
if you refer the candidate to a company which you do not realize is related to or affiliated with
your candidate's current employer, the word gets back to the employer that the candidate is looking
around, and the candidate is fired as a result. I'm sure you're smart enough not to refer your
candidate to his or her current employer, but do you know all of the parents, subsidiaries or affiliates
of the current employer? You might also become involved in litigation if you do a reference check on
your candidate, and the person with whom you checked informs the current employer that the candidate
is looking.
You place the candidate with a company which has a mass layoff or goes out of business. You're
supposed to be the expert here, the candidate will argue. You should have known, or knew and failed
to disclose, that the company with whom you placed the candidate was on shaky financial ground. Now
the candidate has quit one job and lost another, all because of all the glowing remarks you made
about the client and the position in order to convince the candidate to take the job, and in order
to earn a fee. Isn't it understandable why a lawyer would advise the candidate to sue you in such
circumstances.
The client reneges on its offer, after the candidate has quit his or her present job. Are you liable
in such circumstances? I doubt it, unless you knew the client has a history of doing this. Isn't this
the client's problem and not yours? I think so. Will you get named as a defendant along with the
client, even though you will probably win? Very possibly.
To try to protect yourself against exposure to huge damage suits and expensive legal fees, you
should do the following:
Review your contract to see if it is providing you with maximum protection
Review the various representations you make to candidates and clients to see if you may be making
promises for which you don't wish to be held liable if you can't deliver. In particular, take a look
at your web site. Are all the representations you make there true, or maybe more importantly, can
you prove they are true?
Most important of all, purchase a good errors and omissions policy which will not only cover
damages for situations like those discussed above, but which will also cover attorneys fees.
In addition to servings as NAPS Legal Counsel, Attorney Style practices law in Philadelphia,
Pennsylvania and is the author of The Certified Personnel Consultants' Legal Manual and co-author
of Temporary Help Service Operations: A Legal Manual. He may be reached at rpstyle@sprynet.com.
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Certification Immersion Class Schedule - 2007/2008
The NAPS Certification Immersion Classes are helping candidates for CPC and CTS certification go through an
intensive review of the laws affecting the staffing industry and prep for their respective certification
examination. The following schedule identifies the CICs that have been scheduled to date for 2007/2008.
Check this list regularly as new classes are constantly being added.
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2007 Date
December 2
February 21
April 24
April 30
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Site
Cheshire, CT
Nashville, TN
Austin, TX
NC/SC site TBD
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Sponsor
Connecticut APS
Tenn. Recruiters Assn.
Texas APC
NC/SC APS
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Classes are taught by Robert Style, Esq. and Dr. Frank Burtnett of NAPS certification leadership
team. Attorney Style is the author and co-author of the NAPS legal training manuals and Dr.
Burtnett serves as the NAPS certification and education consultant and is the author of the
certification exams.
To get additional information or register for one of the above classes, contact Carolyn
at fulfillment@recruitinglife.com or 706.531.0060.
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Certification Immersion Classes Bring 500 CPCs and CTSs to Staffing Industry
Recent Certification Immersions Classes in Ohio, Florida and New Jersey and at the Top Echelon and NAPS
Conferences have resulted in the certification of more than 500 Certified Personnel Consultants and
Certified Temporary Staffing-Specialists since the program was initiated two years ago. NAPS wishes
to congratulate all certificants in their personal professional achievement and thank the many state
organizations and staffing firms that have sponsored the training programs.
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Fast Fact - Women Outnumber Men in Graduate School
According to the National Center for Education Statistics of the US Department of Education, the
proportion of women enrolled in graduate schools in 2006 continued to exceed the proportion of men.
To review this and other interesting demographics on the education and training habits of
Americans, visit the Mini Digest of Education Statistics
at http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2007067.
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Frequently Asked Questions - Advice for a Rusty Test Taker
Each edition of The NAPS Credential will answer one or two questions being asked by current and
prospective CPCs and CTSs as they interface with the NAPS national office.
Question: It has been a long time since I was in school and the thought of taking a certification
examination frightens me to no end. What advice do you have for a very "rusty" test taker?
Answer: It's all about the preparation! If you are studying the manuals associated with NAPS
certification, you need to create a schedule that allows you ample time for reading and review.
The worst error you could make is to attempt to "cram" a lot of learning into a short period of time.
Some applicants for certification have found support and comfort in studying with colleagues and
engaging in Q&A sessions. Others have found the CPC and CTS Study Guides at www.recruitinglife.com
useful, including the practice examination questions that have been created by your industry peers.
More than 500 individuals have participated in the NAPS Certification Immersion Classes that are
now being held at various sites around the country. When you have studied sufficiently, the threat
of test anxiety is reduced due the confidence you develop in the new knowledge you have gained.
When you get ready to sit for either the CPC or CTS examination, it is always good to test when you
are at your best physically---that means a good nights' rest and proper nutrition on test day.
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Relevant Research: Growth in Staffing Service Demands of Seniors and Boomers
Greater life expectancy, coupled with "boomer" numbers produced over the last half of past century, are
placing greater demands on the service systems of the United States, including the job placement services
offered by CPCs and CTSs. A recent Brookings Institution report, "Mapping the Growth of Older America:
Seniors and Boomers in the 21st Century, outlines how these demographic changes will influence the US
workforce. The study states that a larger senior population that is better educated and earning higher
incomes may be working far longer and have fewer life options than their parents. Go
to: http://www.brookings.edu/views/articles/200705frey.htm to view the full report.
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Message from the Editor - Let The NAPS Credential Hear from You
Have a question about certification or continuing education? Let us know the issues and concerns
that are on your mind and they may become FAQ subjects for future editions of The NAPS Credential.
NAPS encourages readers to submit information about CPCs and CTSs who are making the news and
performing outstanding professional feats. Our goal is to provide news, research and resources
that will help you do a more effective job. Direct any thoughts or input to: fburtnett@recruitinglife.com.
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About The NAPS Credential
This electronic newsletter is distributed monthly to all active Certified Personnel
Consultants (CPCs) and Certified Temporary Staffing-Specialist (CTSs) for whom NAPS
has email addresses. Should you know an individual who is certified and not
receiving The NAPS Credential, tell him or her to go to
www.nrcsip.com and post their
name and basic contact information on the National Registry of Certified Staffing
Industry Professionals (NRCSIP). Once his/her credentials have been verified, the
individual will be automatically place on the monthly distribution list for
this newsletter.
The reference to a product, service or activity or appearance of a web site
in The NAPS Credential does not imply endorsement by NAPS. Any views and opinions
are those of sponsoring organization and may or may not be shared by NAPS.
Direct comments, questions and submissions to
fburtnett@recruitinglife.com. All
submissions will be subject to review by ACA for accuracy, timeliness and relevance
to the readership and may be edited to meet space parameters.
Robert Larson, CPC, Chairman
larson@jobsbl.com
Conrad Taylor, CPC, CTS, President
Conrad.taylor@recruitinglife.com
Ted Angelos, CPC, Certification Committee Chairman
theo@tuttleagency.com
John Sacerdote, CPC, CTS, Vice President
jsacerdote@recruitinglife.com
Frank Burtnett EdD., Editor
Certification and Education Consultant
fburtnett@recruitinglife.com
NAPS Web site: www.recruitinglife.com
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