Temp-to-perm conversion fee

Definition

What a client owes the agency when it hires a placed worker onto its own payroll.

Why It Matters

In most states the schedule is whatever the client agreement says, and reading it is the job. A fee that decays with the length of the assignment is normal, one reaching zero after a few months is a discount the seller has been giving away, and a silent agreement is worse than either. Two states take the pen away. Illinois and New Jersey both cap the placement fee at the total daily commission the agency would have earned over sixty days, reduced by the commission for every day that worker already worked in the previous twelve months. Both also forbid an agreement that stops a worker taking the permanent job. The caps do not cover every desk. Illinois exempts skilled labor placed through a real screening and interview, and New Jersey's cap reaches only listed manual and service classifications, so professional, clerical and technology books still price freely. Work out which side of that line the revenue sits on before pricing a conversion line as a run rate.