J. Employment Agencies, Career Counselors, and Search Firms

The main purpose of an employment agency is to find a job for you. Career counselors and search firms offer additional services such as resume and letter preparation, training in interview techniques, and providing job leads. Career counselors typically do not obtain jobs for applicants.

Inexperienced applicants can be exploited by dishonest employment agencies. While some applicants are charged exorbitant placement fees, others pay large, non-refundable fees for job interviews that do not result in jobs. Still others are asked discriminatory questions at the initial interview or are told to register for courses (for which the agency gets a fee) before they are sent out on interviews.

A search firm placed an ad in a nationally known newspaper that read:

We Use Our Contacts, Methods, Experience, Research Facilities, and Equipment To Obtain Interviews For You in the Unpublished, Unadvertised Job Marketplace. Positions are Available for qualified executives, managers and professionals in the $20,000 to $60,000 range in corporations, associations and foundations.

The ad attracted several hundred individuals, who reportedly paid advance fees ranging from $500 to $8,000. Most of these people never received any placement assistance or contacts.

To avoid being exploited, understand fully the terms of any arrangement. Ask the following questions before you agree to be represented by an employment agency, search firm, or career counselor:

Confirm everything in writing to avoid problems. Reputable firms will generally provide you with a written retainer agreement. Don't sign any document that is presented to you unless you understand it. If an agreement is long and complicated, discuss it with a family member, lawyer or advisor before signing.

Never pay money in advance of results. In most states it is illegal for employment agencies to charge fees before they have found a job for an applicant. Although career counselors and search firms are allowed to charge up-front fees, resist this because many people pay money to firms but never receive promised results.

Recognize common abuses before they occur. Check with your local bar association or Better Business Bureau for a description of what employment agencies, career counselors, and search firms are allowed to do and what prohibitions exist. For example, under the laws in many states, it is illegal for an employment agency to:

• induce you to terminate your job so the agency can obtain new employment for you
• publish false or misleading ads
• advertise in newspapers without providing the name and address of the agency
• send you to an employer without obtaining a job order from the employer
• require you to subscribe to publications, pay for advertising or mailing costs, enroll in special courses, or pay for additional services
• charge a placement fee when the agency represents that it was a fee-paid job
• discriminate on the basis of sex, age, or race
• require you to complete application forms that obtain different information from male and female applicants
• make false representations or promises

Tip:Don't procrastinate if an employment agency or career service takes advantage of you. The longer you wait, the harder it may be to prove your case and collect damages. If you believe you have been exploited, send a letter to the firm to document your protest. The letter should state the reasons for your dissatisfaction and the manner in which you would like the problem resolved. The letters on the following pages illustrate this. If the financial exploitation is significant, contact a lawyer immediately. In any event, if your problem is not resolved amicably, contact your local Department of Consumer Affairs or Better Business Bureau, outlining your complaint in writing. In many states these agencies have the power to investigate charges and take action, including revoking licenses, when wrongdoing is proven. If you are still dissatisfied with the outcome, you can consider suing in small-claims court or through formal litigation.