The Definitive Guide to Protecting Your Company,

TEMPNAPPING

Saga & Solution

by A. Bernard Frechtman, Esq.

Industry “Hall of Fame” Author


Table of Contents

Chapter 1: The Saga
The Past is Prologue
Employment Agency Licensing
From “Temp to Perm”
Permanent Fee v. Temp Service Profit
Changing Practices
Combined Operations
Single Operations
An Expanding Industry
Cost of Expansion
The Transitioning Process
The “Transitioned” Service Investment
The Switch
The Problem of “Tempnapping”

Chapter 2: The Solution
Problem Defined
Lost Contract
Notice of Termination
What to Do
Temp and Client Contracts
Notice To Client
Entering Into a Contract
Conditions on Time Sheet
Pre-Employment Agreements
The Group Time Sheet
Service Operation Differences
Liquidated Damages
Conversion Fees
The Fee Conversion Contract

Chapter 3: Conversion Fee Cases
Suing for the Conversion Fee
The Half Case
The Facts
The Time Card Commitment
Employment Subsequent To Termination
Defenses
The Court’s View
Using the Half Language
Judgment Based on Time Sheet Obligation
The ADIA Case
Defense
Court Ruling
Group Time Sheet
Covering Other Contingencies
The Brits Call it “Poaching”
Client Contract
Court’s View
UK Practice
Conclusion

Chapter 4: “Disintermediation”
Introduction
Current Events
Butler Case
Contract
Facts
Lawsuit for Tortious Interference
Employees Sue Butler
Trial Court Decision
Reversed on Appeal
Enforcement of Restrictive Covenants
Applying the Standard to Butler
Restrictive Covenant
Client/Temp Service Relationship
Being a Middleman
Disintermediation
Court Conclusion

Chapter 5: Suing for Damages
Introduction
Reviewing the Facts
Client Obligation
Temp Obligation
Legal Causes of Action
Tortious Interference
Unjust Enrichment
Conspiracy
Breach of Contract
Fraud
Punitive Damages
The Manpower Case
The Claims
Using Shea’s Employees
Impact of the Decision
The Wearever Case
Whose Employees Are They?
Manpower Loses
Factual Allegations
Jury Verdict
Significance
Provide Protection
Conversion Fee
Restrictive Covenant
Causes of Action

Chapter 6: What About Ethics?
What are Ethics?
What can be Unethical?
Courts Recognize Ethics
Using the Code of Ethics
NATSS Code of Ethics
NATSS Reasoning
Is it Ethical?
NAPS Code of Ethics
General Views

Chapter 7: Should There be a Law?
A Possible Statute
The Debate
Difficulties in Establishing Ethics
Recognition of the Problem
What Should the Standard Be?
The NATSS Guideline
Other Alternatives
Providing Protection
Asserting Claims
Entering Into Agreements
Send Client Notice
Conditions on Time Sheet
Client Agreement
Historical Background
A Current View

Chapter 8: Being A Secondary Supplier
Going from Vendor to Sub-Vendor
Consider Your Rights
Your Temps Become Their Temps
New Burdens and Responsibilities
The Costs to You
Additional Economic Impact
Issues to Check on
Check Economic Impact

Chapter 9: When Your Files Are Stolen
Trade Secrets
Protecting Trade Secrets
Post-Employment Restrictive Covenants
What is a Trade Secret?

In General
As Applied to a Staffing Company
Litigation Basis
Confidentiality Agreement
Seeking an Injunction
Suing for the Fees
Fish v. Ryan
The Trial
The Law
Other Cases
Fiduciary Obligation
Conclusion

Chapter 10: Counsel’s Corner
Use a Contract
Employer Contract Terms
Warning Signs
Temp Contract Terms: Restrictive Covenant
Giving Notice of Violation
Sue for the Fee
Asserting Your Common Law Rights
Make Notes of the Events
Prepare for the Worst
Check List

APPENDIX

Body Snatching-Tempnapping Article
Sample Letter Giving Notice to Employer
Letter from New Temporary Service
Court Opinion in Avanti v. Half
Court Opinion in ADIA v. Sansone
How we Stopped “Body Snatching-Tempnapping”
Temp-to-Temp Transfers-Judgment Day
Court Opinion in C & D v. Butler
Court Opinion in Pat Shea v. Manpower
Court Opinion in Wear-Ever Aluminum v. Towncraft Industries
Shea v. Manpower Final Judgment
Tortious Interference Complaint
NATSS Press Release, Pat Shea Wins Partial
Jury Verdict Against Manpower
Letter to Replaced Temporary Service
NATSS Code of Ethics
TEMPDIGEST Statement on Tempnapping
Tempnapping, article by Bob Allison
Agreement Governing Secondary Suppliers
Relationship
Restrictive Covenant Language
Restrictive Covenant Complaint
Trade Secret Complaint
Confidentiality Agreement
Complaint for Trade Secrets Violation
Court Opinion in Fisher v. Ryan
Letter Excepting Fee Conversion Liability
Warning Letters to Customers, Temporary
Service and Temporary Employee
Fee Conversion Notice to Customer
Fee Conversion Complaint

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