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Recruitment Agency Exclusivity Agreement for the United States

Recruitment Agency Exclusivity Agreement Template for United States

A legally binding agreement under U.S. law that establishes an exclusive relationship between a recruitment agency and a client company for specified recruitment services. The agreement details the exclusive rights granted to the agency, service scope, territory coverage, fee structures, and performance expectations while ensuring compliance with federal and state employment laws.

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Recruitment Agency Exclusivity Agreement

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What is a Recruitment Agency Exclusivity Agreement?

The Recruitment Agency Exclusivity Agreement is essential when companies seek to establish a dedicated partnership with a single recruitment agency for their hiring needs. This document, governed by U.S. federal and state laws, outlines the terms of exclusivity, including geographical scope, position types, duration, and fee structures. It's particularly valuable for organizations requiring consistent recruitment processes, specialized industry knowledge, or volume hiring, while protecting both parties' interests through clear performance metrics and confidentiality provisions.

What sections should be included in a Recruitment Agency Exclusivity Agreement?

1. Parties: Identification of the recruitment agency and the client company

2. Background: Context of the agreement and brief description of both parties' business

3. Definitions: Key terms used throughout the agreement including 'Services', 'Territory', 'Exclusive Period'

4. Scope of Exclusivity: Detailed description of exclusive rights granted and services covered

5. Term and Duration: Period of exclusivity and renewal terms

6. Fees and Payment Terms: Fee structure, payment schedule, and invoicing requirements

7. Obligations of Parties: Respective responsibilities of both parties

8. Confidentiality: Protection of confidential information exchanged

9. Termination: Conditions for termination and consequences

What sections are optional to include in a Recruitment Agency Exclusivity Agreement?

1. Performance Metrics: Specific KPIs and targets - include when specific performance standards need to be met

2. International Recruitment: Specific provisions for cross-border recruitment - include when recruitment involves multiple countries

3. Data Protection: Specific data handling requirements - include when dealing with sensitive personal data or operating in jurisdictions with strict data protection laws

4. Non-Circumvention: Prevention of direct hiring or bypassing agency - include when there's significant risk of circumvention

What schedules should be included in a Recruitment Agency Exclusivity Agreement?

1. Fee Schedule: Detailed breakdown of all fees and commission structures

2. Service Level Agreement: Detailed performance metrics and service standards

3. Territory Schedule: Detailed description of geographical coverage

4. Excluded Positions/Candidates: List of positions or candidates exempt from exclusivity

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Clauses































Industries

Title VII of the Civil Rights Act: Federal law prohibiting employment discrimination based on race, color, religion, sex, and national origin. Must be considered in recruitment practices and agreement terms.

Americans with Disabilities Act (ADA): Federal law requiring reasonable accommodations for qualified individuals with disabilities. Impacts recruitment screening and placement processes.

Age Discrimination in Employment Act (ADEA): Federal law protecting workers 40 and older from age discrimination. Affects recruitment criteria and candidate selection processes.

Fair Labor Standards Act (FLSA): Federal law establishing wage, overtime, and employment standards. Relevant for placement terms and employment conditions.

State Employment Laws: Various state-specific regulations governing recruitment, employment, and agency licensing requirements. Must be incorporated based on jurisdiction.

State Contract Laws: State-specific contract formation and enforcement requirements that govern the agreement's validity and interpretation.

Defend Trade Secrets Act: Federal law protecting trade secrets, relevant for confidentiality provisions and information sharing between parties.

Antitrust Laws: Including Sherman Act, Clayton Act, and FTC Act. Ensure exclusivity provisions don't violate competition laws.

Data Privacy Laws: State-specific and federal regulations governing the collection, storage, and sharing of personal information during recruitment.

Immigration Reform and Control Act: Federal law requiring verification of employee work eligibility. Impacts recruitment and placement procedures.

Professional Standards: Industry-specific recruitment standards and professional codes of conduct that should be referenced in the agreement.

Statute of Frauds: State law requirements for contracts to be in writing and signed, particularly relevant for service agreements exceeding one year.

Non-Compete Laws: State-specific regulations governing restrictive covenants and non-compete agreements that affect exclusivity terms.

Fair Credit Reporting Act: Federal law governing background checks and consumer reports used in recruitment processes.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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