Let’s continue discussing benefits. My intention is to highlight variables that can be affected when you opt to work flexibly so you can be prepared for financial planning and employment negotiations. No one wants to get caught off-guard having to shoulder unexpected expenses!
Retirement
As with health insurance, discussed in a prior blog post, whether you can participate in a law firm’s retirement plan will depend on the firm’s policies and the type of plan that’s in place. Unfortunately, I’ve never had an employer contribute to retirement on my behalf. All my experience has been with small- to medium-sized law firms that don’t offer such a benefit. During years when I was classified as an employee, I was able to make my own contributions to a 401k. As an independent contractor, however, it’s up to me to save for retirement by seeking out individual retirement savings plans. Let’s just say I have some work to do on this front!
Here are links to more information from the IRS about types of retirement plans and individual retirement accounts so you can be more informed about available retirement plan options:
https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans
https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras
Maternity Leave
Law firms’ maternity leave policies vary widely, so be sure to find out all you can before you need it.
When my firstborn came along in 2003, I worked full-time at a medium-sized firm that offered 6 weeks’ paid leave with an additional 2 weeks’ paid leave for a c-section. Since the firm had over 50 total employees, the Family and Medical Leave Act (FMLA) entitled me to 12 weeks of leave, but it was unpaid after the firm’s paid leave expired. (FMLA is discussed more below) I had a c-section and took the full 12 weeks, so I received a combination of paid and unpaid leave. I decided to stay at home after my second child was born, so I never had a baby while maintaining a part-time position.
If I were to have a baby now, while working as a part-time independent contractor (NOT happening now that I have teens!), I feel comfortable that I could negotiate unpaid leave, but I wouldn’t expect any paid leave. That may sound harsh, but my income is based on billable hours, so if I’m not billing, I don’t earn any money and neither does the firm. I wouldn’t expect that to change even if the reason for not billing was to have a baby. It couldn’t hurt to ask for some paid leave, but I wouldn’t plan on it. Therefore, I would make plans to have no income from my job during maternity leave.
On the other hand, if I was working as an employee on a part-time basis, I would request to have paid leave on the same basis as other employees. I would also expect that the amount would be based on my reduced salary or average hourly earnings during that time period.
As a FlexWorker, you may find yourself in the situation of charting new territory with a law firm. It could be a great opportunity to work through policy issues not only for yourself, but for others who may walk your path in the future!
Family and Medical Leave Act (FMLA)
As you’re designing a flexible schedule, consider your eligibility for FMLA. If you are an independent contractor, the FMLA won’t apply to you even if you work for a covered employer because you are considered to be self-employed. (See FMLA at Section 101(3) and interpretive guidance, such as Administrative Opinion Letter FMLA2004-1-A). If you are an employee, find out whether your employer law firm is covered by FMLA as well as whether you personally qualify for FMLA.
I won’t attempt to summarize the entire Act and its nuances, but covered employers are private sector employers who employ 50 or more employees for at least 20 workweeks in the current or preceding calendar year, as well as employers who are public agencies. In general, to qualify for the protections of the Act, you have to work for an employer for 12 months before taking leave, and you must have worked 1250 hours in that 12- month period.
If you want to seek the protection of the Act, you’ll need to work the minimum number of hours required. 1250 hours translates to about 104.2 hours per month. To put this in perspective, if you work 25 hours a week for an average of 4 weeks per month, that would only equal 1200 hours. So, you should plan to work slightly more than 25 hours a week on average. It would also be a good idea to bank a few extra hours for unexpected contingencies that could affect your ability to make your monthly hours.
The U.S. Department of Labor’s FAQ page states that “[t]he 1,250 hours include only those hours actually worked for the employer. Paid leave and unpaid leave, including FMLA leave, are not included.” See Eligibility section. I’m not an employment lawyer, and I’m not offering legal advice, but “hours actually worked” may include non-billable hours, so I’d recommend keeping track of those even if you are not compensated for them.
For more information about the FMLA, here is a U. S. Department of Labor link:
Miscellaneous Work-related Expenses
A few other expenses bear comment so you can plan accordingly: parking, transportation, travel, and client development.
If parking or daily transportation is a big expense where you work, discuss it with the firm. Except when close parking is free, I’ve never had any issues with a firm paying for daily garage parking, even as an independent contractor. But I would certainly not want to be surprised by that additional cost. If you want to have more premium parking than the firm generally provides, you could request a parking allowance and then cover the additional amount yourself.
It’s also important to understand policies for billing and seeking reimbursement for travel expenses. For example, a client may expect not to be billed for the time and expense of in-state travel, but the firm should still reimburse you for your gas and other reasonable travel expenses related to the client’s business. It’s best to know the policies in advance. You wouldn’t want to enjoy a 5-star dinner and hotel, and find out later you can’t get fully reimbursed!
Client development expenses are another issue to discuss in advance. Find out if you have authority and a budget before you incur expenses for client lunches or entertainment. Some firms give each attorney a budget, and it’s up to the attorney how to spend it. Other firms will want to approve expenses on an as-needed basis. For my part, I’ve had so much work assigned to me by other lawyers that I have not had to do much client development. No complaints here!
How do your benefits flex?
If you’ve had a different experience with these benefits while working a flexible schedule, I’d love to hear about it!
FlexWork for Attorney Moms 