Worksmith, Inc. on behalf of itself and its affiliates (herein after referred to as “Worksmith”), in connection with contingent recruiting services that Worksmith will perform for Client (“you”) under this Agreement, hereby agrees that it will prescreen all applicants carefully to meet the criteria furnished by Client. At all times during the interviewing process, Worksmith will adhere to the highest ethical and professional standards of conduct. Our supply of qualified job candidates is the result of factual advertising, referrals and proactive recruiting methods from both clients and applicants, and a reputation for providing a professional service. No obligation accrues from Client agreeing to interview or actually interviewing employee candidates provided by Worksmith. If Client hires a Worksmith candidate any time within one (1) year of the greater of Worksmith’s presenting said candidate to you or the last bilateral communication regarding said candidate, the following payment obligations apply:

A.  FEE SCHEDULE

    1. For all contingent direct hire searches, the fee is calculated as ten percent (10%) of the total first year’s annual guaranteed compensation of the candidate as agreed upon at the time the candidate is hired.
    2. For freelance/contract/temporary positions, applicable billing rates will be disclosed to Client at the time of submission before the candidate is elected. In the event that a Worksmith candidate is converted to a fulltime hire subsequently, the following scale will apply;
Days Worked Permanent Fee
1-30 10%
31-60 9%
61-90 8%
91-120 7%
121-150 6%
>150 5%

B.  DIRECT HIRE PLACEMENT GUARANTEE

Should a Worksmith-provided employee leave or be terminated for any reason, other than termination due to Client downsizing or otherwise eliminating the position, within seventy five (75) calendar days from such employee’s start date, Worksmith will provide Client with a replacement employee for the same position on a one time basis. The replacement employee must be hired within the subsequent one hundred and eighty (180) days from the date of the original termination. TIMELY FEE PAYMENT IN ACCORDANCE WITH THE TERMS SET FORTH IN SECTION C BELOW MUST BE ADHERED TO IN ORDER TO PRESERVE THE REPLACEMENT GUARANTEE. 

C.  FEE PAYMENT

Worksmith’s fee for direct hire placements is due from the Client no later than twenty (20) days from the day the Worksmith-provided employee begins their employment in any capacity. Worksmith’s fees for freelance/temporary placements or payroll services are due net twenty (20) days from the date the invoice is received. Worksmith will provide the client with an invoice no earlier than the Worksmith-provided employee’s start date or completion of approved weekly hours. Client agrees to pay a late payment penalty on any unpaid balances after 20 days from the due date of Invoice at the compounded rate of .0445 % per day (Annual Percentage Rate of 16.25%) or the maximum legal rate, whichever is higher, calculated from the date of Invoice.

D.  DISPUTES

Client shall be responsible for any collection or legal fees that arise out Client’s failure to pay any and all valid invoices.

E.  INDEMNIFICATION

Client represents and agrees that it has and will comply with city, state and federal law regulating employment. Client agrees to indemnify, hold harmless and defend Worksmith from and against any and all liabilities, fines, damages, fees and expenses arising out of Client’s failure to comply with applicable employment law or any unlawful action taken by Client or its invitees against Worksmith employees.

F.  SOLICITATION

Client represents and agrees that it shall not, without the express written consent of Worksmith, directly, solicit, assist any third party in soliciting, or hire, as the case may be, any person or entity that is or was (at any time within the 1 year prior to the solicitation), a employee of Worksmith.

G.  COMPLIANCE WITH FEDERAL AND STATE LAW

In accordance with Federal, State and local equal opportunity laws, Worksmith’s policy is to refer all qualified candidates without regard to race, color, national origin, ancestry, gender, age, physical or mental disability or mental condition, sex, religion, marital status, sexual orientation or any other legally protected characteristic.

H.  TERM AND TERMINATION

This Agreement shall be for an initial term of one (1) year beginning on the effective date executed and shall renew automatically for successive one (1) year renewal terms. Either party can terminate this agreement without cause with a thirty (30) day written notice.