Built for US staffing & search firms

Catch the clause that kills your fee. In 60 seconds.

One bad backdoor-hire clause can cost you a $25,000 placement. LexGuard scans every client agreement, placement contract, and contractor MSA for the clauses that quietly wipe out recruitment fees — tuned for US staffing law (1099/AB5, FCRA, state non-compete rules), before you sign.

3 free analyses No credit card US staffing law
acme-staffing-msa.pdf
Staffing MSA · 22 pages
High Risk
Fee at risk
18,400 estimated
Backdoor window: only 6 months
$16–37k/placement
High Risk
Rebate: 100% for 12 weeks
High clawback risk
High Risk
Net-60 + no late-payment terms
Cash-flow drag
Medium Risk
Analyzed in 52 seconds
The recruitment-contract trap

You sign 5 contracts a week. One bad clause = one unpaid placement.

Most legal-tech is built for law firms and Fortune 500 — it won't catch the recruitment-specific stuff that actually wipes out your fees: short backdoor-hire windows, unreasonable refund periods, fee triggers tied to probation completion, and worker-status indemnity traps (1099 misclassification, AB5 and state ABC tests). LexGuard does — every contract, every clause, every time.

The unpaid placement

Candidate places, client claims they 'already knew' them. Your 6-month backdoor-hire window expired three weeks ago. $25,000 fee gone.

The refund trap

Candidate quits on day 88 of a 90-day guarantee. Your client invokes a 100% refund clause buried on page 8. Refund $30,000 in cash.

The worker-status bomb

IRS or California EDD reclassifies your contractor as W-2. A one-sided indemnity clause makes you liable for back tax + penalties. $50k+ exposure per placement.

From PDF to negotiation leverage in 60 seconds

STEP 1
Drop the contract

Upload the client agreement, placement contract, or contractor MSA. Or paste the text.

STEP 2
Recruitment-specific checks run

Fee triggers, refund windows, backdoor-hire scope, worker-status risk (1099/W-2), payment terms — flagged with dollar exposure.

STEP 3
Negotiate from a position of knowledge

Walk into the call knowing exactly what to push back on. Use our redline suggestions.

What's different

Every red flag comes with a dollar figure

LexGuard doesn't just tell you a clause is unusual. It tells you what it could cost. So when you push back on a 6-month backdoor window, you're not arguing legal theory — you're showing your client the exposure number on the screen.

⚠️ Red flag example
Backdoor-hire window: 6 months

Industry standard for permanent placements is 12 months. A 6-month window means if Client hires the candidate in month 7, no fee is owed. At typical perm fees of 20-25% of salary, that's $16-37k per missed placement.

Estimated exposure16–37k per placement
The 10 checks

Built around the clauses that actually cost staffing firms money

Fee trigger & timing

Tied to offer acceptance, start date, or probation completion. When is your fee actually earned?

Refund / replacement guarantee

Length, sliding-scale terms, and what disqualifies a refund (termination for cause, layoff, voluntary quit).

Backdoor hire / introduction

Window length, applicability to affiliates and subsidiaries, proof of introduction standards.

Payment terms & collections

Net days, late-payment interest, recovery of attorney fees and collection costs.

Exclusivity & retainers

Contingency vs retained vs exclusive. Cancellation costs on mid-search exits.

Worker status: 1099 vs W-2

IRS/state reclassification risk, California AB5 & ABC tests, one-sided indemnity for back taxes.

Non-solicit & non-compete

Enforceability by state — bans in CA, MN, OK, ND; duration caps on non-solicits in many others.

Compliance & background checks

FCRA compliance, EEOC adverse-action procedures, state ban-the-box laws.

Limitation of liability

Cap relative to fees at stake. Carve-outs for IP, confidentiality, gross negligence.

Termination survival

What happens to pending candidates introduced before termination. Survival of backdoor clause.

Pricing

Fee insurance, priced like SaaS

One caught clause pays for years of subscription. Cancel any time.

Most popular
Recruitment Pro
$99/ month

For solo recruiters and boutique firms (1-5 desks).

Start free, upgrade when ready
  • Unlimited contract analyses
  • All 10 recruitment-specific checks
  • Dollar-denominated exposure on every red flag
  • PDF export with redline suggestions
  • Full history + clause library
  • Email support, 24h reply
Recruitment Business
$199/ month

For agencies with 6+ desks or multi-office teams.

Start free, upgrade when ready
  • Everything in Recruitment Pro
  • Up to 10 team members
  • Shared clause library across team
  • API access for ATS integration
  • Custom PDF branding
  • Priority support

Frequently asked questions

Stop signing recruitment contracts blind.

Three free analyses. No credit card. Run it on your next client MSA and see what we catch.