Today I had the opportunity to speak with the DFW Recruiters Network. Placement Professionals are faced with a variety of legal issues including covenants not to compete, non-solicitation covenants, anti-raid provisions, and the general enforceability of fee agreements with clients. All of these topics are the subject of this blog, but I wanted to take this opportunity to provide some helpful links to placement professionals.
Chapter 2501 of the Texas Occupations Code governs "Personnel Services". Personnel Services "means a person who, regardless of whether for a fee, directly or indirectly attempts to obtain permanent employment for an applicant or obtains or attempts to obtain permanent employment for an employee." Chapter 2501 places a number of requirements on those offering personnel services including a bond requirement, caps fees in certain circumstances, and sets forth a laundry list of 10 "Prohibited Practices". A plaintiff who files a lawsuit and asserts a violation of the statute can obtain attorneys' fees. Further, a violation of 2501 can also constitute a violation of the Texas Deceptive Trade Practices Act.
In terms of protection of placement professionals, 2501 states that a service file (defined as "a job order, resume, application, workpaper, or other record containing information related to: (A) an applicant; (B) an employer; (C) an employment position; or (D) the operation of a personnel service.") is a Trade Secret pursuant to Section 31.05 of the Texas Penal Code, the Theft of Trade Secrets criminal statute. Thus an individual who attempts to take a service file from his or her employer could potentially be subject to not only civil proceedings but criminal as well.
Chapter 2501 of the Texas Occupations Code governs "Personnel Services". Personnel Services "means a person who, regardless of whether for a fee, directly or indirectly attempts to obtain permanent employment for an applicant or obtains or attempts to obtain permanent employment for an employee." Chapter 2501 places a number of requirements on those offering personnel services including a bond requirement, caps fees in certain circumstances, and sets forth a laundry list of 10 "Prohibited Practices". A plaintiff who files a lawsuit and asserts a violation of the statute can obtain attorneys' fees. Further, a violation of 2501 can also constitute a violation of the Texas Deceptive Trade Practices Act.
In terms of protection of placement professionals, 2501 states that a service file (defined as "a job order, resume, application, workpaper, or other record containing information related to: (A) an applicant; (B) an employer; (C) an employment position; or (D) the operation of a personnel service.") is a Trade Secret pursuant to Section 31.05 of the Texas Penal Code, the Theft of Trade Secrets criminal statute. Thus an individual who attempts to take a service file from his or her employer could potentially be subject to not only civil proceedings but criminal as well.
