In addition to the employment benefits previously discussed, attorneys need to think through professional expenses when they consider flexible work arrangements. For the expenses I bear personally as an independent contractor, I keep track so I can deduct them from my federal income taxes. Every dollar I can keep feels good!
The expenses discussed below are traditionally paid by a law firm if you work as an employee, but if working reduced hours will affect that, it’s best to know in advance. If you work as an independent contractor, chances are you’ll bear more of the expenses, but a law firm should be prepared to shoulder those that directly relate to your work for the firm.
Professional Liability Insurance (Malpractice Insurance)
We may not like to think about it, but malpractice claims do get made and insurance provides important protection. Find out if the firm will be including you on their professional liability policy, or whether they will expect you to obtain your own coverage. My experience has been that a firm will provide coverage for the work you do for the firm. I’ve spent 95-100% of my time working for a single law firm at any given time, so I’ve always been included on the firms’ policies. To the extent that I decide to accept cases separately as an independent contractor (solo practitioner), I am responsible for that liability apart from the firm. In that case, a separate policy is recommended for the limited scope of that work.
To find liability insurance, you could begin with your state bar association. For example, the Texas Lawyers Insurance Exchange is a member-owned legal malpractice carrier for attorneys and judges in the State of Texas: https://www.tlie.org/
The American Bar Association provides a list of professional liability insurance carriers that you can search by state: https://www.americanbar.org/groups/lawyers_professional_liability/resources/lpl-insurance-directory/
Continuing Legal Education
The cost of continuing education can add up, especially if you wait till the last minute to meet your annual quota. (Who, me??) If the firm will not be footing all such costs for you, it pays to have a plan. Free CLE is available, but usually in small units, like one hour per month through a local association or bar section. You can take advantage of free courses throughout the year if you’re organized. Clearly, I have work to do in this department since I’ve never met all my CLE requirements through free classes!
In my experience as an independent contractor, firms generally have expected me to pay for my CLE. However, I’ve had success in requesting a firm to pay for certain courses from which it will directly benefit. I usually come back from courses full of ideas and cases to share with the firm, so it makes sense to ask. Also, there’s no harm in requesting a CLE allowance, such as part of a pay raise package.
Research Tools
Hopefully, a law firm will pay for online research tools needed for you to handle work for their clients. However, if you end up working for multiple firms, such as on a project basis, it might make more sense for you to have your own online account and then bill the firm for the research.
Desk reference books, such as my beloved O’Connor’s books, can be invaluable resources, but they cost a pretty penny to update on an annual basis. (They seem to get thicker every year, too!) Some firms are willing to pay annually for each attorney to have her own copy, and multiple volumes at that, but be sure to ask. The firm where I currently work prefers to purchase fewer copies for attorneys to share, but that doesn’t always work well. I end up pilfering from my husband. His firm pays for new books every year for all attorneys, so he brings home the past year for me. It feels just like Christmas!
Bar Association Fees & Occupation Taxes
Ah, the annual expenses of keeping your law license. There are state bar membership dues, section dues and occupation taxes to pay, as well as optional association memberships. Ask the firm if they will be covering the expenses required to maintain your license, as well as fees for optional bar memberships and section dues. Licensing expenses are usually covered by a firm for employees. Some firms will also pay for memberships to certain bar association sections (insurance section, appellate section, etc.) and associations (like ABA, county or city bar associations). However, there may be limits to the number of memberships a firm will pay, so ask before you join.
As an independent contractor, these are all expenses that I bear. For some reason, the payment deadlines always seem to sneak up on me. (I’m sorry, State Bar of Texas—June 1st might be a convenient due date for you, but I’m a mom of school-aged kids, and May is end-of-school-year chaos!) Be sure you know the deadlines and amounts you’re responsible for so you aren’t surprised when the bill shows up.
How do your professional expenses flex?
If you have experience with these expenses while working a flexible schedule, I hope you’ll give us some insight into how they are allocated for you!
FlexWork for Attorney Moms 