Protecting Yourself from Potential Employer Scams: What to Do and What to Look For

When a potential employer requests a deposit, commission-only sales positions, or other concerning terms, it is essential to approach the situation with caution. This article will guide you through the steps you should take to protect yourself from potential employment scams and give you insights into what to look for.

Identifying Common Employment Scams

The labor market can be complex, and sometimes potential employers ask for unusual requests that indicate a possible scam. Here are some red flags to watch out for:

A commission-only sales position Requesting a deposit for equipment or a product Terms that seem too good to be true Lack of formal contract or documentation

Evading Pyramidal Marketing Schemes

Some unscrupulous businesses operate as pyramid marketing schemes, which often involve:

No actual employment Commission-only sales roles No returnable demonstration products Personal financial investment

For instance, if a potential employer demands a 'deposit' for a 'product' that you need to sell, and this product is not returnable, run away from such situations as it is likely a scam.

Responding to Unusual Employment Requests

Responding to a potential employer who asks for an unusual request requires careful consideration. Here are some steps to take:

Ask for a full contract to review the terms and conditions Request documentation to verify the legitimacy of the company Conduct background checks before agreeing to any unusual terms Seek advice from trusted professionals or job placement services

Believe me; the term ‘scam’ and ‘job’ are not interchangeable. What looks like a legitimate job might turn out to be a scam if not carefully examined.

Legality and the Law

It is crucial to understand the legal aspects of employment. In some cases, requiring a deposit might be illegal, and in such situations, it should be approached with suspicion. For instance, in the United States, some employers might allow for the requirement of tools or equipment, but any other form of deposit is highly unlikely to be legitimate.

Consider this example: If you were asked to purchase a laptop for your job, but it would be your personal property and not tied to the company, it would be a legitimate request. However, if a potential employer demands a deposit for any reason, it should trigger an automatic suspicion.

Reputable Company Practices

Reputable companies proceed with interviews and job offers in a professional manner. They:

Provide a clear and thorough job description Offer a detailed contract that outlines responsibilities and benefits Do not ask for upfront payments or deposits May offer modest startup assistance, such as a company vehicle or equipment

For example, when I entered the insurance sales business in 1994, I was asked to purchase a laptop, but it was mine to keep. Similarly, when I applied for a lumber salesman position and my future boss mentioned a company vehicle, he even agreed to purchase my existing truck from me.

These are the signs of a reputable company and a fair employment practice. If a potential employer expects any type of prior financial investment or unusual contract terms, it is probably fraudulent.

Conclusion

Always be wary of potential employer requests that seem out of the ordinary. Verify everything through legal means and take the time to ensure the legitimacy of any job offer. Protect your financial interests by asking for transparency and proceeding with caution.