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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41220
Experience:  Run my own successful business/contract law practice.
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We are a recruiting firm based in California and do business

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We are a recruiting firm based in California and do business across state lines. Our recruiters are based all over the country. For example, a recruiter based in Colorado places a candidate with a company in Texas. All of our agreements state. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to its conflicts of law provisions. The parties herby submit to exclusive jurisdiction in the State of California.

Does this mean any lawsuits in regards XXXXX XXXXX agreement would need to be held in the state of California?

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

This provision does mean that any suit would have to be held in the state of CA.

MyVirtualCPA :

Is there anything else you need assistance with? If not, please rate my response as "excellent" so that I may receive credit for assisting you today.

MyVirtualCPA :

I'm sorry, this was posted in the wrong category. I did not realize it until now. Please hold and an attorney will assist.

Customer: replied 3 years ago.

my question was posted to the wrong group. It was not a tax question. It should have been posted to business law. Sorry

Thank you for your question. A legal professional here. Please allow me to assist you.

My apologies but the answer provided to you happens to be incorrect. In a situation where the language points both to a 'choice of law' and a choice of jurisdiction, any employment and independent contractor concerns will be evaluated and heard in California courts. Specifically whatever the subject matter of the contract is ends up being evaluated and heard in California under current California laws and regulations. Other concerns, such as breach of contract that is not related to employment or to the subject matter of the contract may be brought up where the breach occurred or where the defendant is located, but that is a separate issue that is not related to this employment agreement that you are referencing.

Hope that helps.

Customer: replied 3 years ago.

I'm not sure I understand your answer. If someone breached one of these items I assume it would be heard in California. (this is the rest of the agreement. It is very short)


 


XXX is engaged in the business of referring individuals to its clients for the purpose of employment. If CLIENT directly hires XXXX referral a fee that equals 22% of their first year base salary will be due. If our referral is paid on an hourly basis whether they are a W2 employee or independent contractor, then a fee that equals 22% of their annualized compensation based on a 40 hour work week and 52 weeks will be due.


 


2. PAYMENT TERMS


 


Payment for services is due 30 days from the candidates first day of employment. CLIENT will be responsible for all reasonable and necessary collection costs on unpaid invoices.


 


3. GUARANTEE POLICY


 


If XXXX hired referral is terminated or resigns within 60 days from start date of a full-time salaried position, XXXX will provide a refund at the prorated portion of the fee at a rate of 1/60 of the fee for each calendar day the candidate is not employed by CLIENT for the first 60 days of employment. XXXX guarantee is based upon XXXX being paid in accordance with XXXX terms as outlined above. Guarantees do not apply to referrals that are contracted or consulting through XXXX.

Thank you for your follow-up. To ensure that I respond directly, I will go line by line so as to avoid confusion.

I'm not sure I understand your answer. If someone breached one of these items I assume it would be heard in California. (this is the rest of the agreement. It is very short)

That is a correct understanding. Anything within the subject scope of this contract would be heard in California if there is a breach of terms. I was referring to terms outside the contact, if any, as those outside terms would not be covered under the choice of law and choice of jurisdiction conditions.


 


XXX is engaged in the business of referring individuals to its clients for the purpose of employment. If CLIENT directly hires XXXX referral a fee that equals 22% of their first year base salary will be due. If our referral is paid on an hourly basis whether they are a W2 employee or independent contractor, then a fee that equals 22% of their annualized compensation based on a 40 hour work week and 52 weeks will be due.


 


2. PAYMENT TERMS


 


Payment for services is due 30 days from the candidates first day of employment. CLIENT will be responsible for all reasonable and necessary collection costs on unpaid invoices.


 


3. GUARANTEE POLICY


 


If XXXX hired referral is terminated or resigns within 60 days from start date of a full-time salaried position, XXXX will provide a refund at the prorated portion of the fee at a rate of 1/60 of the fee for each calendar day the candidate is not employed by CLIENT for the first 60 days of employment. XXXX guarantee is based upon XXXX being paid in accordance with XXXX terms as outlined above. Guarantees do not apply to referrals that are contracted or consulting through XXXX.

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My answer does not change--in terms of compensation and fees stemming from this agreement for employment and recruiting, any concerns would be heard in California.

Hope that clarifies.

Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41220
Experience: Run my own successful business/contract law practice.
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