6 Tips to Better Organization for Lawyers

Practicing law involves managing countless details and deadlines. For this reason, organization for lawyers can become a challenge for many lawyers in a high-paced law firm juggling various projects.

Without essential organization skills or resources to support the workload, it’s easy for information or tasks to innocently fall through the cracks. Adversely, this can leave lawyers feeling burnout or overwhelmed which could lead to a deterioration of quality of service, impacting overall client satisfaction.

Maintaining organization for lawyers is more than having pristine files and an uncluttered office — it includes critical skills like strategic planning, time management, and task prioritization.

Why Do Lawyers Struggle with Organization?

For years, lawyers were often depicted as busy professionals constantly shuffling through papers and running to the courthouse. Remote work and the rise in legal technology have certainly modernized a lawyer’s day-to-day activities, but that doesn’t mean those tasks are necessarily organized.

Lawyers have a lot to manage in a high-stress, high-performance environment. Often, this can lead to a system of organization that’s known only to the lawyer — billable hours written on sticky notes, case files interspersed with other papers, and deadlines tracked on a notepad. To avoid chaos, here are a few tips to have a more organized work life.

Organization for Lawyers: 6 Tips

Maintain an Organized Workspace

There’s no right or wrong way to set up an office or workspace, but it should work for you. That said, clutter can be a barrier to organization. Keep your desk tidy and free of clutter. Put away anything you’re not working on right now and gather loose documents and file them.

If your law firm relies on paper, consider the benefits of transitioning to a digital process. Lawyers have traditionally dealt with mass amounts of paper which can lead to disorganization and hinder productivity. Limiting the amount of paper you use in your day-to-day with a digital filing system will greatly improve the accessibility you have to the work you need.

Establish a Routine

While we all have the same amount of hours in the day, the way we use them directly impacts our productivity.

Highly productive people often start the day with a priority to-do list that reflects the tasks that absolutely must get done that day. The rest are tasks that you could do, if you have time, to get a jump on the next day’s work.

When you’re planning your routine, be sure to leave time to make calls and emails, take a break, and have lunch. Before signing off for the day, take a few minutes to create your priority to-do list for the next day.

Block Time

We’re more connected than ever before, which comes with the pressure to stay in touch with work colleagues, family, and friends at all times. Our devices can become a source of distraction instead of productivity at work.

This is where blocking time comes in handy. For some, using time blocks and a calendar is more effective than to-do lists. Use your calendar as a time-blocking tool and divide your day into different blocks of time, each with a specific task.

Improve Time Management

Lawyers often find themselves struggling to balance time spent on non-billable administrative tasks and their caseload.

Fortunately, legal project management tools can help with time management, time tracking, and overall organization, with project management features to manage your caseload along with time tracking and billing functionalities. The right platform allows you to separate time and expenses, add notes or related files, collaborate with colleagues, and set customizable notifications to ensure you’re focused on the highest-priority tasks.

Commit to Better Communication

One of the casualties of disorganization is a reduction in client satisfaction. This can be due to a decrease in the quality of service a lawyer provides because they’re so busy.

A simple way to combat this is by blocking time, but also leveraging modern technology to streamline your communication. Features like client portals are a way for clients to feel connected to your firm while also having on-demand access to the information they need.

Track Time in Real Time

When you’re shuffling between cases, it can be easy to lose track of your billable time. This is why it’s important to have resources that allow lawyers to work as they go without having to guess how many hours they spent on a client.

Neither overestimating nor underestimating billable hours is good for a law firm. If you overestimate your time, you could be in violation of the American Bar Association’s Rule 1.5 on billing and fees. If you underestimate your time, you’re leaving money on the table for valuable services you’ve provided to your client.

Tracking time in real-time is important for accuracy and your organization’s well-being. Time tracking tools allow you to set timers on your laptop, tablet, smartphone, or desktop.

Proper timekeeping not only helps you stay organized and bill accurately, but it helps you identify where you could improve your time management and productivity to get more accomplished in your day.

How Legal Technology Keeps Lawyers Organized

Law practice management software offers plenty of tools to help you stay organized. Time tracking, project management, and document management tools ensure you can organize files, plan your calendar and tasks, communicate with clients, and track time to improve your productivity from anywhere.

Organized Lawyers Are an Asset

Firms and clients realize the value of having modern processes to assist lawyers with staying on top of tasks and deadlines. It may not happen overnight, but taking steps toward better organization with tools like law practice management software will improve your efficiency and productivity.

This article was authored by Nina Lee of Bill4Time.

For more law office management news updates, click here to visit the National Law Review.

©2006-2022, BILL4TIME. ALL RIGHTS RESERVED.

NYC Issues Proposed Rules for Its Automated Employment Decision Tools Law

On Friday, September 23, 2022, the New York City Department of Consumer and Worker Protection (“DCWP”) releasedNotice of Public Hearing and Opportunity to Comment on Proposed Rules related to its Automated Employment Decision Tool law (the “AEDT Law”), which goes into effect on January 1, 2023. As we previously wrote, the City passed the AEDT Law to regulate employers’ use of automated employment decision tools, with the aim of curbing bias in hiring and promotions; as written, however, it contains many ambiguities, which has left covered employers with open questions about compliance.

The proposed rules are intended to clarify the requirements for the use of automated employment decision tools within New York City, the definitions of key terms in the AEDT law, the notices to employees and applicants regarding the use of the tool, the bias audit for the tool, and the required published results of the bias audit.

The DCWP’s public hearing on the proposed rules and deadline for comments are October 24, 2022. Although the proposed rules may be modified prior to adoption, the following summarizes the key provisions.

“Substantially assist or replace discretionary decision making”

The AEDT Law applies to an automated decision tool that is used “to substantially assist or replace discretionary decision making.” It does not, however, specify the type of activities that constitute such conduct or what particular AI-powered employment tools are covered by the law.

The proposed rules attempt to provide guidance on this issue by defining “substantially assist or replace discretionary decision-making” as one of the following actions:

  1. relying solely on a simplified output (score, tag, classification, ranking, etc.), without considering other factors; or
  2. using a simplified output as one of a set of criteria where the output is weighted more than any other criterion in the set; or
  3. using a simplified output to overrule or modify conclusions derived from other factors including human decision-making.

“Bias Audit”

Pursuant to the AEDT Law, before using an automated employment decision tool, a covered employer or employment agency must subject the tool to a “bias audit” no more than one year prior to the use of the of the tool.  The law explains that “bias audit” means an “impartial evaluation by an independent auditor,” but does not otherwise specify who or what constitutes an “independent auditor” or what the “bias audit” must contain. The proposed rules address these gaps.

First, the proposed rules define “independent auditor” as “a person or group that is not involved in using or developing an [automated employment decision tool] that is responsible for conducting a bias audit of such [tool].” This definition does not specify that the auditor must be a separate legal entity from the creator or vendor of the tool and therefore suggests that it may be acceptable for the auditor to be employed by the organization using the tool, provided the auditor does not use and has not been involved in developing the tool.

Second, the proposed rules state that the required contents of a “bias audit” will depend on how the employer or employment agency uses the tool.

If the tool selects individuals to move forward in the hiring process or classifies individuals into groups, the “bias audit,” at a minimum, would need to:

  1. calculate the selection rate for each category;
  2. calculate the impact ratio for each category; and
  3. where the tool classifies candidates into groups, the bias audit must calculate the selection rate and impact ratio for each classification.

If the automated employment decision tool merely scores candidates, the “bias audit” at a minimum, would need to:

  1. calculate the average score for individuals in each category; and
  2. calculate the impact ratio for each category.

The preamble to the proposed rules makes clear that DCWP intends these calculations to be consistent with the Uniform Guidelines on Employee Selection Procedures (“UGESP”), 29 C.F.R. § 1607.4, and borrows concepts from the framework established by the UGESP in the definitions of “impact ratio” and “selection rate.”

Under the AEDT Law, upon completion of a bias audit, and prior to using the automated employment decision tool, covered employers and employment agencies must make the date and summary of the results of the bias audit publicly available on the careers or job section of their website in a clear and conspicuous manner. The proposed rules clarify that publication may be made via an active hyperlink to a website containing the required information, as long as the link is clearly identified as linking to the results of the bias audit. The required information must remain posted for at least six months after the covered employer or employment agency uses the tool for an employment decision.

Required Notices

The AEDT Law also specifies that employers and employment agencies must notify candidates for employment and employees who reside in New York City as follows:

  1. at least ten business days prior to using an automated decision tool, that such a tool will be used to assess or evaluate the candidate or employee, and allow the individual to request an alternative selection process or accommodation;
  2. at least ten business days prior to use, the job qualifications and characteristics that the tool will use in the assessment or evaluation; and
  3. if not disclosed on the employer or employment agency’s website, information about the type of data collected for the tool, the source of such data, and the employer or employment agency’s data retention policy shall be available upon written request by the individual and be provided within thirty days of the written request.

Covered employers and employment agencies have expressed concern about the practical and administrative difficulties of providing the above notices in the fast-paced environment of today’s recruiting and hiring.

In apparent response to these concerns, the proposed rules clarify that the employer or employment agency may provide the notices required by paragraphs (1) and (2) by:

  1. (a) in the case of candidates, including notice on the careers or jobs section of its website at least ten business days prior to the use of the tool, and (b) in the case of employees, including notice in a written policy or procedure that is provided to employees at least ten business days prior to use;
  2. including notice in a job posting at least ten days prior to using the tool; or
  3. (a) in the case of candidates, providing notice via U.S. mail or email at least ten business days prior to use of the tool; and (b) in the case of employees, providing written notice in person, via U.S. mail, or email at least ten business days prior to use.

In short, under the proposed rule, an employer or employment agency could comply with the AEDT Law by providing the required notice when first posting the job.

With respect to the notice requirement in paragraph (3), the proposed rules state that an employer or employment agency must provide notice to covered individuals by including notice on the careers or jobs section of its website, or by providing written notice in person, via U.S. mail, or by email within 30 days of receipt of a written request for such information. If notice is not posted on the website, the employer or agency must post instructions for how to make a written request for such information on its careers or job section of the website.

Finally, although the AEDT Law requires an employer or employment agency to allow covered individuals to request an alternative selection process, the proposed rules state that nothing requires an employer or employment agency to provide an alternative selection process.

©2022 Epstein Becker & Green, P.C. All rights reserved.

September 2022 Legal Industry News and Updates: Law Firm Growth and Expansion, Industry Recognition, and Spotlights on Women in Law

Happy autumn from the National Law Review! As the seasons change, we hope you are having a safe and healthy year. Please read on for the latest news coverage in the legal field, including law firm hiring and expansion, industry awards and recognition, and continued updates on women in law.

In addition, please be sure to check out Episode 4 of the Legal News Reach podcast: “The Perfect Storm: Law Firm Marketing & Business Development Budgeting with Beth Cuzzone, Global Practice Leader of Intapp.”

Law Firm Hiring and Expansion

Shumaker, Loop & Kendrick, LLP has named two new attorneys to lead their growing Public Sector practice group: partner Andy Mayts will serve as the chair of the group, and partner Patrick Duggan will serve as co-chair. Mr. Matts focuses his practice on banking, finance, and construction-related litigation. He handles complex civil litigation for many clients, including large businesses, national banks, and other financial institutions. Mr. Duggan practices employment law and litigation in complex workplace public sector and business disputes, with a specific focus on the Americans with Disabilities Act, the Fair Labor Standards Act, and other prominent legislation.

“It will take unique thinking and creativity to help governmental and public entities meet the growing needs of our communities,” said Shumaker Management Committee Vice Chair Jennifer Compton. “Andy and Patrick are top-performers and ready to meet this demand. With their leadership, we are confident that Shumaker’s Public Sector Practice will have continued growth and success.”

Stephanie J. Blumstein has joined law firm A.Y. Strauss as a partner in the Franchise practice group. Ms. Blumstein has a great deal of franchise litigation experience, including matters related to breach of contract, trademark infringement, fraud claims, business competition, and lease negotiations. She has assisted prospective franchisees as well as veteran franchise owners on all types of issues. Ms. Blumstein was also recognized in the 2023 edition of The Best Lawyers in America.

“I am thrilled to welcome Stephanie to the team,” said Marisa Rauchway, chair of the firm’s Franchise Group. “As a veteran of the national franchise community, her broad legal talents and deep industry knowledge will add immediate value to both existing and future clients of our practice.”

Michael Best added Dan Forest, former Lieutenant Governor of North Carolina, as a senior advisor in the firm’s Raleigh office. Joining the Government Relations practice group, Mr. Forest assists Michael Best Strategies with developing a strong bipartisan team of professionals who are focused on serving clients with public affairs and government relations needs. In his former role as Lieutenant Governor, Mr. Forest also served as President of the North Carolina Senate, Chairman of the Energy Policy Council, and Chairman of the Digital Technology Committee as a member of the State Board of Education.

“We’re excited to add Dan to our leadership team in North Carolina,” said Andy Jones, North Carolina Managing Partner for Michael Best & Friedrich, LLP. “Dan’s record of service and deep network across the State will help us continue to build our entrepreneurial-minded team of professionals and round out our ability to provide full-service solutions to our clients.”

BakerHostetler added Lisa Houssiere as a member of the firm’s Litigation Practice Group and Energy Industry team in their Houston office.  Ms. Houssiere has extensive experience in international disputes and investigations, particularly in the energy sector, and has worked on several high-profile Foreign Corrupt Practices Act cases and advised clients under investigation by the U.S. Department of Justice, the Federal Bureau of Investigation, the Commodity Futures Trading Commission and the European Commission.

Commenting on Ms. Housssiere’s addition to the firm, W. Ray Whitman, chair of BakerHostetler’s national Litigation Practice Group, stated. “Her range of trial work, including complex energy, antitrust and intellectual property matters, brings additional depth to our internationally recognized litigation practice.”

Venable LLP expanded its Product Liability and Mass Torts team in the Chicago and Los Angeles with the addition of partner John Roberts (Chicago) and partner Karen Firstenberg (Los Angeles). Mr. Roberts assists clients in the areas of product liability, commercial litigation, insurance recovery, and regulatory compliance, with much experience serving as national litigation counsel for a variety of clients. Mrs. Firstenberg provides counsel to life sciences companies on compliance, toxic torts, and product liability, representing clients in all fields, including medical devices, materials science, biotech, and pharmaceuticals.

“We are thrilled to welcome John and Karen to Venable and to our product liability team. Their addition will not only diversify our practice, but further solidify our presence in Los Angeles and expand it to Chicago, a long-standing life sciences hub and the home of some of our most valued clients. John and Karen’s success in the courtroom also deepens our bench of proven products trial lawyers,” said Kathleen Hardway, a co-chair of Venable’s Product Liability and Mass Torts Group.

Industry Awards and Recognition

Steve Adamczyk, partner at Varnum LLP, has been named to the 2022 Gulfshore Business 40 Under 40. This magazine seeks to recognize young legal professionals in the Southwestern region of Florida who have aided the area through volunteer work and philanthropy. Mr. Adamczyk has served on the board of the Florida Southern Gulf Coast to Heartland Chapter of the American Red Cross since 2015. He has also supported local elected officials and long-term recovery efforts in the wake of Hurricane Irma.

Mr. Adamczyk has a great deal of experience in estate and trust planning services. At Varnum, he broadly focuses his practice on residential and commercial real estate transactions, as well as community association representation, providing counsel and assistance for condominium and homeowners associations across the state of Florida.

Katten Muchin Rosenman LLP was recognized at the 2022 HFM US Services Awards ceremony as the best onshore law firm for hedge fund client services in the United States. Recipients were chosen by a panel of leading hedge fund chief operating officers, as well as chief financial officers and general counsels. Wendy Cohen and Allison Yacker, co-chairs of the firm’s Investment Management and Funds practice, accepted the award on behalf of the firm.

Lance Zinman, Global Chairman of Katten‘s Financial Markets and Funds group, said the following of the award: “Receiving this distinction underscores what clients and others have told us they appreciate about Katten: That we provide excellent and sophisticated counsel in a business-savvy manner that takes into account the practical aspects of our clients’ business; that we analyze complex market and legal issues and close investments and transactions, navigating regulatory issues quickly and comprehensively; and that we quickly see the big picture, to name just some of what we hear.”

Lawmatics, a leading legal client relationship management platform, was named a “Hot Product” in the 2022 TechnoLawyer Buyer’s Guide. TechnoLawyer continues to report on the latest developments in legal technology and law office management; the publication cited Lawmatics’ versatile automation capabilities as a particularly significant feature that set the platform apart.

“We’re extremely proud to be identified as a premier tool for helping law firms grow,” said Matt Spiegel, CEO of Lawmatics. “Our software empowers law firms to spend less of their time on administering the business of their practice, and more time focusing on the clients they serve. We know that firms thrive when they can prioritize people rather than paperwork.”

Thomas F. Zych, co-chair of Thompson Hine’s Antitrust, Competition & Distribution and Emerging Technologies practices, and Privacy & Cybersecurity team, has been selected to chair the American Bar Association’s Antitrust Law Section, through August 2023.

Based in Cleveland, Mr. Zych has over 39 years of experience in a wide range of data protection, intellectual property, consumer protection, social media, competition and antitrust matters. He also represents a full range of business enterprises in their privacy and data security operations.

Los Angeles Business Journal’s 2022 “Most Admired Law Firms” list added Sidley, as one of the most distinguished and “best law firms to work for” in the Los Angeles area. The Los Angeles Business Journal’s list recognizes law firms who are working toward creating diverse, positive, and supportive professional environments.

Of note is the 2022 launch of Sidley’s “Built to Lead,” program designed to help the firm’s associates by equipping them with greater business acumen by partnering with top business schools and helping young lawyers grow their leadership capabilities by partnering with select nonprofit legal and community organizations.

Women in Law

Foley and Lardner Partner Natasha Allen has been recognized on The Recorder’s California Legal Awards “Women Leaders in Tech Law” list. A co-chair of Foley’s Venture Capital Committee and Innovative Technology Sector Artificial Intelligence Section, Ms. Allen guides domestic and international corporations through mergers, acquisitions, and divestitures, with a special focus on cybersecurity, software, and virtual reality firms.

The California Legal Awards celebrate legal innovators who are influential in the ongoing development of technological jurisprudence. Allen and her peers will be celebrated at an awards ceremony on November 3, 2022.

Paula Cozzi Goedert, a leading nonprofit attorney with Barnes and Thornburg specializing in tax, compliance, and strategy, has been recognized on Crain’s Chicago Business 2022 “Notable Women in Law” list. Crain’s annual list illustrates the power of women in law by showcasing leaders with compelling professional stories.

Ms. Goedert chairs Barnes and Thornburg’s Associations and Foundations Group and has served over 300 clients, including the National PTAAmerican College of SurgeonsAmerican Library Association, and Bank Administration Institute. Goedert’s expertise was invaluable during the COVID-19 crisis, where she guided her clients through challenges including staff furloughs, endowment raids, and insurance claims.

Additionally, Perkins Coie Partners Gina LaMonica and Lucy Park, were included on the 2022 Chicago Business Notable Women in Law list, whose requirements include mentoring other women lawyers, promoting inclusive practices in the workplace, and assuming a leadership role in professional organizations and civic and community service initiatives.

Ms. LaMonica practices white-collar criminal defense and is regularly retained to conduct internal investigations involving employee misconduct, regulatory violations, financial fraud, and is co-chair of Perkins Coie’s Educational Institutions & Services industry group and a co-founder and current secretary of the Chicago chapter of the national Women’s White Collar Defense Association.

Ms. Park  a partner in Perkins Coie’s Trust & Estate Planning group, counsels high-net-worth individuals, families, and family-owned businesses on wealth preservation and transfer, charitable giving, and succession planning and is a member of the firm’s Executive Committee, Strategic Diversity Committee,  and co-chair of the firm’s Women’s Forum, a  resource group, which works to attract, retain, and promote and support the firm’s female lawyers.

Former White House Administrator Sharon McGowan is adding her anti-discrimination background to her new role as partner at nationally-recognized civil rights law firm Katz Banks Kumin. Ms. McGowan has previously worked as Chief Strategy Officer and Legal Director for the Lambda Legal Defense and Education Fund, staff attorney with the ACLU’s LGBT and AIDS projects, and lead attorney for seminal trans workplace antidiscrimination case Schroer v. BillingtonDuring Obama’s administration, Ms. McGowan worked toward ending various forms of discrimination as Principal Deputy Chief at the U.S. Department of Justice’s Civil Rights Division and Acting General Counsel and Deputy General Counsel for Policy at the U.S. Office of Personnel Management.

“Sharon is a brilliant legal advocate who has played an unparalleled role in securing some of our nation’s greatest achievements in civil rights,” said firm Co-Founding Partner Lisa J. Banks. “Her unique perspective and wide range of counseling experience will be a tremendous asset to our clients in the areas of whistleblower law, employment law, sexual harassment law, and civil rights and civil liberties matters.”

Firm Co-Founding Partner Debra S. Katz added: “Sharon’s experience as one of President Obama’s top anti-discrimination attorneys, as well as her deep level of public policy and advocacy expertise, will be invaluable to our clients and the firm’s ongoing efforts to advance civil rights in the workplace.”

Copyright ©2022 National Law Forum, LLC

Legal News Reach Episode 4: The Perfect Storm: Law Firm Marketing & Business Development Budgeting with Beth Cuzzone, Global Practice Leader of Intapp

Welcome to Season 2, Episode 4 of Legal News Reach! National Law Review Managing Director Jennifer Schaller is joined by Beth Cuzzone, Global Practice Leader of Intapp. Together, they discuss the best budgeting strategies for legal marketing departments as firms emerge from the pandemic with a new set of priorities and perspectives.

We’ve included a transcript of the conversation below, transcribed by artificial intelligence. The transcript has been lightly edited for clarity and readability.

Jennifer Schaller

This is Jennifer Schaller, and I’m the Managing Director of the National Law Review. We’ll be speaking with Beth Cuzzone, who’s the Global Practice Leader of Intapp. Beth, can you tell us a little bit about your background and what you do at Intapp?

Beth Cuzzone

Thank you for asking, Jennifer. I think it’s an important table-setting question. So I recently joined Intapp in 2022. It’s a global technology firm, and it partners with investors and advisors to help them run their businesses. And it basically follows those companies through the lifecycle of their companies, whether it’s intake or relationship management, or deal management, or billing or marketing or risk, and so many other operational functions. But my role Intapp sits in the marketing and business development corner of those companies. So as a Global Practice Leader, I’m responsible for working with a team of subject matter experts who help clients align their strategic priorities with our solutions. It’s been an interesting and challenging shift, because I spent more than 30 years of my career in the very types of companies that Intapp now helps. So it’s been an interesting and exciting and challenging change all at once. And I think it also gives me a unique lens into what we’re going to be diving into today.

Jennifer Schaller

Okay, wow, it sounds like a spot-on match here we have today. So let’s dig into it. We’re talking about law firm budgets. So for this upcoming budget cycle, for firms who are either almost done with it, or in the process, or close to wrapping it up. What’s different this year than in previous years in law firm marketing and business development departments?

Beth Cuzzone

In one word, everything. If we take a step back and look at the easy formula that law firms have used traditionally when creating their budgets, there hasn’t been a lot of secret sauce. In its simplest form, and I am oversimplifying it for illustrative purposes, but in its simplest form, law firms for years and years and years, and year over year, would take into consideration their former budget number and give it an increase that aligned with the firm’s increase in their revenue for that year. And then the real work would begin on saying, Okay, we’re going to give ourselves a 2 or 3% increase, because we increased our revenue by 8%. So we’re going to take some slice of that, and we’re going to increase what we did last year, and then they would reallocate that number. And so if it was my budget was $1,000 last year, and you know, now I’m going to increase it by 3%, it’s going to be $1,300. And now let me just play around with the line items and see where we want to spend a little more, where we want to spend a little less. Given the years that we’ve had coming up to the 2023 budget season, we had 2020, when the pandemic hit, we had 2021, where we were still experiencing the effects of that. And then in 2022 as people tried to move back into some normalcy of spend market, you know, marketing, outreach, awareness, credibility, relationships, going back into the office, that sort of thing, the budgets are a little bit all over the place. So to answer your question, why is this coming year’s budget different? It’s because you don’t have last year’s budget that you get to just reset.

The interesting thing is that I think it actually is going to provide opportunities to relook at the way you think of your budget and think a little bit about very specific line items. You know, I do think one of the places that people are going to spend a lot of time thinking about is digital marketing. And, you know, a question I had for you is, have you seen an uptick in the digital marketing spend from law firms, where we were pre-pandemic, to pandemic to where people are moving towards?

Jennifer Schaller

That’s kind of a multi-layered question. I mean, over the last five years, there’s obviously been a switch to more digital. There’s a couple of different things going on in the larger digital advertising industry. Advertising rates right now as a whole are pretty suppressed digitally. So that’s impacting us a little bit, just because the baseline is down. But if you’re in a specific niche, like the National Law Review, where you know, we very much have the traffic and the audience, there’s always going to be a demand for it. What’s going to be super interesting to see is when cookies go away. People keep talking about that, because that’s going to make the content on the website far more relevant, as opposed to having retargeting ads and things like that. But the date keeps changing on that. So, you know, we’ll let you know when we know. And related to publishing end of it, there’s been a bit of a sea change on that. There always was sort of a pushback or a stigma somewhat attached to pay-for-play publishing. But a little bit of a difference with that is, over time, most marketing professionals, especially in legal, understand that there’s costs involved in running a quality publication, if you want to have analytics, if you want to have a responsive staff who’s around to make edits, that you have to pay for that, and that, you know, if you don’t have money coming in from subscriptions, if you’re a no login website, that there’s going to be cost. So there’s been a bit of a change there. There’s more receptiveness to it. And I think maybe because law firms themselves understand what it takes to publish, they’re a little more forgiving, and understanding that we have costs too, if that makes any sense.

Beth Cuzzone

It makes complete sense. It makes complete sense. And again, there’s no direct answer to some of these complicated questions that we’re asking each other today about where people are spending and where it’s going versus where it’s been when we’ve had this pause on so many levels. And like you said, I also just think that the lens of the marketing and business development departments and law firms are really starting to appreciate that looking at digital assets as a way to create awareness and credibility is going to be a leader in their budget.

Jennifer Schaller

Well, yes, especially since events have changed and gone away. And a lot of sponsorships have changed. And given that pandemic ripple effect of live events versus sponsoring tables at events, which used to be a part of legal marketing department spends, what’s becoming more the standard for law firm, legal marketing department and business development spend, is it changed? Is it reallocating? How is that working?

Beth Cuzzone

That’s a great question. So typically–I heard somebody say once, law firms are like snowflakes, everyone is different. And I know that when I look at industry statistics that talks about the swing of spend, that has to do with you know, the percentage of revenue of law firms, that it goes anywhere from 2 or 3% to 18, 19, 20%. And the reason that they have that swing is because in some marketing and business development department budgets, they include personnel when others don’t, okay, or in some marketing and business development, department budgets, it’s all marketing, whether it’s for the HR department, or legal recruiting, or the firm, and others. Those are each very separate departments and separate budgets. So there is this huge spread across the industry. But I think for most firms, we’re going to find that there’s that 3.5 or 4% to 8% budget target of revenue. And that’s kind of where people settle in. There are outliers on both sides. And interestingly, there’s often some surprises. I find that sometimes some of the smaller, mid-sized firms have larger percentage budgets. But I think that’s because they can’t enjoy the scales of economy that larger firms can. If you’re looking at your budget, and we can talk about this in a little bit, you know, in 2020 when the pandemic started, all discretionary budget items were removed from law firms, whether it was in marketing and business development or not. So it was like, “Unless we’re contractually obligated to pay something, we’re taking it off the table.” And so now firms are getting that opportunity to rebuild it. And again, that approach and that budgeting exercise is a real opportunity for these firms to say, “What haven’t we been asking ourselves?” Or, “What haven’t we done that we’ve wanted to? What’s not in our budget? What should be or what are the opportunities out there in terms of places or people or technology or intersections that we’ve never tried before?” So I think there’s some of those questions that are happening, too.

Jennifer Schaller

Yeah, I think if anything, this is just helpful to know, to have legal marketers or even law firm administrators, or management know how to ask questions about legal marketing budgets, that there is such a wide range, but the wide range prompts people to ask the question, “What’s in that figure and what’s not?”  I’ve never really had it broken down that well before. So thank you for taking the time to spell that out. Because it’s not spelled out a lot of different places. Many people will appreciate that.

When you’re talking about law firm marketing budgets, what’s the difference between acquisition marketing and retention marketing and preparing budgets? Should law firms dedicate more resources to one or the other? Or is it some sort of blend?

Beth Cuzzone

That is a very forward-thinking question that you’re laying out there. Because I think that law firms basically had two types of buckets, if you will: they thought of it as awareness and credibility building, or relationship building, it was one of the two. And so they had some things around awareness and credibility, we talked a little bit about it earlier, you know, it’s that one to many, the website, you know, the content, the newsletters, the big events, that sort of thing. And then the relationships are kind of those one-on-ones. It’s the spending time going out and sitting down with a prospective client to learn something, or having an entertainment budget or doing some small roundtables with thought leadership, or sitting down with different decision makers at a particular client site so that you’re staying close to them. And it was a little bit all over the place. And the shift that I’m starting to see happen is that law firms are starting to break down their budgets into exactly what you said: acquisition marketing, which is, “How are we getting new clients?” versus retention marketing, which is, “how are we keeping and growing the clients that we have, or the brands that we have, or the relationships that we have?” And by doing that, they’re also starting to do account-based marketing. And they’re able to put their budgets together and say, “We’re going to spend 70, or 60, or 80% of our budget on our existing relationships, because we know that it costs six to eight time more money, resources, people budgets to get a new client than it does to keep and grow an existing one. So when you look at the scale of acquisition versus retention, retention is going to get that bigger budget. And then the acquisition is going to have a smaller wallet share of the overall budget. But within that big budget, you’re going to start that retention budget, you’re going to start to see that being broken down a little bit by account-based marketing as therefore account based budgeting. Again, this is a little bit around the corner. And this is I think what firms are going to be dealing with over the next five years of exactly being able to measure their return on objectives or their return on investments and where their money is really being spent. Because they’re going to be tying it down to very specific objectives and very specific strategies, if you will.

Jennifer Schaller

Okay, so what would be some of the areas that there would be an overlap, like between acquisition and retention marketing, would that fall in the digital area? Or where would that be?

Beth Cuzzone

That’s a perfect example, please look at what we’re talking about like a Venn diagram, right, you’ve got your acquisition, you’ve got your retention and then there’s the place where they overlay. Digital assets are a perfect example that fall into both. It’s helping you in the marketplace. And it’s helping you find your next big relationships and clients and referral sources. And those are the same assets that you can use to add value and stay close to some of your existing relationships, places where they start to separate a little bit, again, is really by account or by client, client-based marketing versus account-based marketing. And so you might have a firm where you say, we’re going to spend a lot of our travel and entertainment budget on going to each one of their offices and doing junior executive training. So that we’re aligning ourselves with the next generation of decision makers, and that’s how we want to spend our money and our time and our budget and our resources and our people on that particular client this year, sort of thing. So it all depends, again, on the strategy. And it also depends a little bit on the firm.

Jennifer Schaller

Yeah, would it vary by practice group, or just like, if you had a firm that was, you know, just intellectual property law based, would there be differences in the ratio or the mix or network?

Beth Cuzzone

That’s a great question. So there are some firms and also practice areas where there’s annuity streams, if you will, right. There’s just an ongoing, “We represent this particular finance institution on all of these sorts of loans. And, you know, we do 5, 10, 15 a year for them.” Think about if you were actually a litigator, and you were representing financial institutions where you didn’t know how many you were going to have in a year or whether you were not going to have any for two years and how they think of you and they call us when it’s about the company or they don’t call us when it’s about the company so you have to again, look at the firm, its strategy, the cadence of those open matters, the cadence of when they’re being asked to help clients and then try to align your budget and the activities in your budget around those very objectives. Does that make sense?

Jennifer Schaller

Yeah, it does. A lot of what you’re breaking down is really helpful because people throw numbers out there, but they don’t go into the details of what moves the numbers up or down, like your example of depending on if the law firm is including the expenses for HR, or including the salaries of the marketing department in there, that should make a big difference. And nobody really spells that out. So that was very helpful.

Beth Cuzzone

What kinds of trends are you seeing…there’s this nuance that’s happening now Jennifer, where there was a period of time “back in the day” where all law firms took out one-page ads in some of the biggest business-to-business publications and journals, or like yours, very, very niche, industry-specific news-related channels. And it was “we want to be top of mind” with whoever the reader is, whether it’s our peers, whether it’s our competition, whether it’s a referral source, whether it’s a potential client, whether it’s somebody on the other side of the table, and over time, that awareness campaign started to move into that content campaign. And I’d really be interested to see how are law firms maintaining that mindshare in the marketplace? What are you seeing?

Jennifer Schaller

Some big change from print, and what’s really changed–COVID was sort of terrible for the world, but in a lot of ways good for law firms and legal publishing. Because there were so many rapid developments of a legal or administrative or regulatory nature going on, there was just a lot of content to be written on and a lot of people looking for that content. So there was inherently a lot of traffic just being driven by COVID and all the related changes to it. Now that that’s leveled out a little bit, what we’re seeing from law firms is when they do their informative writing, meeting, talking about cases that happened and why that’s important to a particular industry, or new regulations that are on the horizon, what’s a little bit different is they’re starting to impose–not impose, but impart–their personality a little bit more. We’re seeing more content come in where it talks about people’s journey in the legal profession, how they balance working from home or transitioning out of working from home in a little bit more with the content. So before there was very little of that. I mean, there was some. It’s pretty prevalent now where we’ll see many law firms just have entire blogs and podcasts and a whole kind of vertical dedicated to life balance, people’s career paths, and things like that, which is a bit different than what we’ve seen before. I think it provides a good opportunity for law firms to tease out their competitive differences just by letting people know who they are, because ultimately, with law firms, they’re buying the person and their knowledge and their background. And this is kind of a more forward way of doing it than what’s been done in the past.

Beth Cuzzone

You know, it’s so interesting to hear you say that. I don’t think I really put such a fine point on it until you just mentioned it. All law firms do the same thing. For the most part, a general practice firm does the same thing as the next general practice, you know, an IP boutique does the same thing as the next IP. But how you do it, who you do it with and the culture is what your differentiator is. And you’re right, as I’m thinking a little bit about the sorts of information that I’m seeing, either the types of information or the personality in which people are writing, it really is giving firms a way to showcase their culture and who they are and their differentiator as opposed to all sounding like really smart law firms.

Jennifer Schaller

It’s that and I think it’s a little bit recruiting as well. I mean, the whole world has experienced quite a bit of turnover. Law firms have always had more turnover than other industries. So we’d have some stuff coming in where folks are interviewing their summer associates. And they’re doing that on a couple different levels. I think it plays to people who may be interested to know how a person got a summer associate position at an Am law firm, but also, you know, it’s a big hug to that person, and it shows in a recruiting sense that that law firm really cares about folks at all levels of the organization. We wouldn’t have seen that 10 years ago, so that’s just really different.

Okay, so let’s get into the fun part: budgeting tips! You’ve been doing budgets for years, you work with an organization that helps law firms kind of balance competing things for their attention and help tease out what’s probably the best bet for the firm. Do you have a few tips to share with our readers, or our readers and our listeners today, concerning law firm budgets, what to include what to not get pushed back on?

Beth Cuzzone

Yes, I think that there are a few best practices out there that law firm marketing and business development departments want to be thinking about as they’re either negotiating their budgets with firm management, or if they’re actually putting it together. We talked a little bit about the fact that historically firms have used the previous year and that budget number is a benchmark. Ironically, in 2022 law firm marketing and business development budgets increased by more than 100%. And again, it’s because in 2020, and 2021, they were decimated, it was the place where there was the most discretion in the budget, there were things like they weren’t going to be doing sponsorships, they weren’t going to be holding webinars, they weren’t going to be traveling to see clients or things–like take it all out. So then when we started to move towards this normalcy of, “let’s get back to business in 2022”, with a kinder, gentler, more softer approach, they had to increase their budgets by more than 100%. So the first thing I would say is, do not prepare your 2023 budget based on your 2022 budget, because you’re going to show that there’s already been 100% increase, and there will probably be very little wiggle room. I would also scrap 2020 and 2021. So I think one of my tips or best practices is, use 2019 as your benchmark, not 2021 or 22. For the reasons we’ve just talked about.

The other thing, you just mentioned this in the way you asked the question, is that there is a very complex ecosystem in law firms, and the marketing and business development budget is one of many competing priorities. And I think understanding that budgeting is a long-term game, not one you win every year. And so what I’m trying to say is, take a panoramic view of where the firm is, what they’re trying to accomplish, what some of their major goals are for the next year or two, look left and look right at what other operating department budgets are going to be impacted by that, and prepare your budget within the context of what’s happening. So don’t ask for the greatest budget increase among every operations department, every year. There becomes a fatigue, where it’s like, “Nope, just give them the 2%, we’re not going to listen to why they deserve more every year, year over year than every other department.” So I think walking in and being able to communicate, “We understand that lateral growth is one of our top strategic priorities, and that you’re going to be spending a lot of our budget on legal recruiting. So this year, I’ve put in some particular items and activities that will support legal recruiting, and I’ve moved my budget request from a 6% increase to a 2% increase.” And again, you can negotiate two or three years in advance, then say, “I just ask that when we’re looking at my budget in two years, or in three years that we appreciate that I’m asking for a smaller increase this year, given where we are, what we’re doing.” You know, it also goes a long way when there’s been a down year.

So, so far we’ve said, use 2019 as your benchmark, don’t ask for the greatest budget increase among every operations department every year, try to negotiate for two or three years in advance at your firm, but also negotiate two or three years in advance with your partners or vendors, depending on what you call them. You know, to be able to say, “Listen, we want to do this. And we can’t be all-in this year because our budget isn’t going to allow us, but can we negotiate an 18-month relationship with you and spread it over a 24-month period?” Negotiate a little bit! These are companies that want to partner with you. I also think it never hurts to ask and get comfortable with, again, just partnering with your vendors. That’s why I always call them partners and not vendors. Be comfortable with partnering with them and saying, “Look here are two or three things I’m trying to accomplish. And I only see one of those things in the proposal that you sent to me. Are there some things that you can put in here that are revenue neutral? Or are there ways that you can reallocate our spend and help me hit these other budget objectives?” They’ll work with you. So negotiate with management and then partner with your vendors.

I’ve been talking with a lot of firms. And another thing that I’m seeing firms really start to do is ask themselves, “Where is the lowest risk and the highest return?” and vice versa, and making sure that your budget is representing that like, “Boy, this is the lowest risk and a really good return. So we’re going to do more of this. And this is a really high risk, very questionable return. We’re going to do less of this.” And by the way, having those conversations with your management committee or your manageing partners or your executive committee about the ways that you’re looking at risk versus return, or contextually where you are in the firm’s operational churn, if you will, those sorts of things will help you in the long run.

Jennifer Schaller

It’s really great that you point out the need to let your vendors know what your goals are. It’s very challenging sometimes when people are like, “What’s the price? You know, what, what, what is your best price?” What is important to you? It’s not really a negotiating technique, we want to know where to focus to best meet your needs. And if we have no concept of what your goals are, or what you’re trying to highlight, it makes it infinitely more challenging.

This year, or any historically, are there budget items that you would suggest CMOs pay more attention to this year than in previous years or anything that’s unique about this year that they might want to highlight other than the points that you made about using 2019 as a base point versus the previous two years? Which were just weird. Is there anything else different?

Beth Cuzzone

You know, I think this is the time everybody is peeking over the horizon wondering, “Is there a downturn? Is there a recession? Is there a down year coming? What do we do?” You know, you’ve got, you’re asking yourself all of those questions. I think this is also a year, when you’re looking at your budget, to look at things that are driving efficiencies, scalability, revenue generation, right? There’s a difference between cost and investment. Make sure that your budget has a nice healthy mix of, “These are things where we want to spend money to get more money. And then these are places where we want to spend money so that we can meet an objective,” and I call them return on objectives, and return on investments. “We want to be known in this new market. We want to open up an office in Texas. And so we’re going to be spending a lot of time and money and energy and budget on really getting the word out creating some top of mind awareness in Texas.” That’s an objective, right? If it is that we really want to get a little closer to the bottom quartile of our clients in terms of revenue and say, “How can we help them with more problems than we do now? How do we take them and really try to grow the wallet share that they spend on outside counsel?” That’s a return on investment. So you know, have that healthy mix on return on investment, and return on objective.

Jennifer Schaller

Fair enough. So briefly, your firm Intapp? How do they help law firms with their budgeting process? Are there specific things that they’re set up to do to help?

Beth Cuzzone

Thank you for asking me that and for being so gracious. Because yes, I think the answer is yes. So Intapp can help law firms create insights to find revenue, find where there’s work that’s more profitable, find where, you know, there’s whitespace, and opportunities, or be able to basically measure things, and have this one source of truth in your law firm, where you’ve got all of these technologies that help all of these different operating departments that all connect, that’s why it’s called Intapp, there’s an integration to this, and they all integrate and talk to each other. And those kinds of insights can inform law firms about the kind of money that they’re spending and the kind of return that they’re getting. And it can be as simple as looking at your marketing campaign open rate for your last email, all the way to looking at some very strategic insights of “here are some spaces or places in our firm where we could be working closer with clients, or an industry where we haven’t saturated as much as we could.” So it can go from tactical to strategic, and that’s what Intapp does. That’s why it’s such an amazing company.

Jennifer Schaller

So is Intapp more process or technology based or kind of marrying the both of them when they work with law firms?

Beth Cuzzone

That’s another great question. So it’s a technology company. And I think the thing I’ve been most surprised with is the brainpower that sits in Intapp and all of the people that are there to help clients successfully deploy, or change management professionals that help you get more engagement at your firm, or help you with use cases of smarter ways to use the technology.

So Intapp sells technology that has professionals that help you with the people in the process as well. It’s a little competitive secret.

Jennifer Schaller

Sounds like a good match. As always, we appreciate Beth’s time sharing her thoughts with us and her experience and kind of the trends that she’s seeing and marrying it with the experience that she’s had over the years. Thank you very much.

Beth Cuzzone

It was so great to see you, Jennifer. So great to see you. Thank you for inviting me and be well. True North.

Conclusion

Thank you for listening to the National Law Review’s Legal News Reach podcast. Be sure to follow us on Apple Podcasts, Spotify, or wherever you get your podcasts for more episodes. For the latest legal news, or if you’re interested in publishing and advertising with us, visit www.natlawreview.com. We’ll be back soon with our next episode.

Copyright ©2022 National Law Forum, LLC

Top Legal Industry News Highlights for August 2022: Law Firm Expansion, Legal Awards and Recognition, and the Latest in Women in Law

Thank you for reading the latest edition of the National Law Review’s bi-weekly legal news roundup! In these last weeks of summer, we hope you are remaining safe and healthy. Read more below for updates on law firm hiring and expansion, industry awards and recognition, and spotlights on women in the field of law.

Law Firm Hiring and Expansion

Moore & Van Allen PLLC has added Julianne Farnsworth as counsel and as a member of the firm’s Litigation practice group. Presently based in the Charleston office, Ms. Farnsworth dedicates her practice to complex civil litigation, representing clients in areas such as business torts, environmental law, employment law, and other areas. She has practiced before state and federal courts across the U.S. and is additionally certified as a mediator in the state circuit and federal courts of South Carolina.

“We are pleased to welcome Julianne who has been a top litigator in the Charleston area for over 30 years,” said Trudy H. Robertson, co-managing member of the firm’s Charleston office. “Julianne’s experience and reputation will be valuable assets for servicing our litigation clients across the full spectrum of business areas and industries.”

Trey Baker, a former senior advisor for public engagement at the White House, has joined Barnes & Thornburg LLP as a partner in the Government Services and Finance Department. In his former role, Mr. Baker specialized in outreach to civil rights organizations and minority communities, focusing on criminal justice and law enforcement reform. He has also served for four years as the city manager for Grenada, Mississippi.

“Trey’s deep well of government experience and strong foundation in the D.C. market will prove invaluable to our clients – both locally and nationally,” said Roscoe Howard, managing partner of the firm’s Washington, D.C. office. “His passion for community engagement, evidenced by the breadth of his work at the local and federal level, brings a unique skill set to our talented group of legal professionals. We’re happy to have him.”

Honigman Law, LLP has advanced its recent growth efforts, announcing the launch of Honigman Law Israel, an Israeli subsidiary focusing its efforts on U.S. mergers and acquisitions, capital markets, venture capital, real estate, and more. For prospective candidates, the subsidiary offers the opportunity to continue practicing complex U.S. legal matters while located in Israel. The HLI team has already added its first five attorneys: Sam Katz, who practices in corporate and capital markets; Inbar Rauchwerger, who practices in mergers and acquisitions; Aviv Avnon, who practices in finance; David Snyder, who practices in tax law; and Rachel Rhodes, who practices in corporate and capital markets.

“We’re honored to bring on these five top-notch attorneys from some of the most prominent law firms in the U.S. and expect to bring in many more highly qualified individuals through this initiative,” said Honigman CEO and Chair David Foltyn. “We have continued to see incredible demand for our transactional counsel, which in turn requires that we continue to grow with the most talented lawyers. With HLI, we have created a win-win opportunity for A+ attorneys who want to reside in Israel for personal reasons but did not have a path to doing so, and for Honigman, which can deepen and expand the great talent we can devote to our clients.”

Much Shelist, P.C. has added three new attorneys: Jonathan FriedlandJeremy Waitzman, and Hajar Jouglaf. Mr. Friedland joins the firm’s Restructuring & Creditors’ Rights group, and Mr. Waitzman and Mr. Jouglaf join the firm’s Corporate & Finance group. The trio has formerly worked together to represent businesses across the U.S., focusing their efforts on mergers and acquisitions, insolvency, and bankruptcy matters. Together, they counsel clients across many industries, including manufacturing, information technology, retail, and hospitality.

“Jonathan, Jeremy, and Hajar impressed us from the very beginning of our conversations,” said the firm’s Managing Partner Mitchell Roth. “They bring legal prowess and business savvy that will be immensely valuable to our clients, and they share our commitment to top-tier service.”

Steptoe & Johnson PLLC has added Jeffery D. Mulrooney as Of Counsel to the firm’s Business Department. Mr. Mulrooney has a great deal of experience managing intellectual property matters, with particular emphasis on patent, trademark, and copyright applications across all industries, including medical devices, material sciences, consumer products, and more. At the firm, he will focus his practice specifically on intellectual property and transactional matters.

“Jeffrey’s focus on copyright, trademark, and patent law is a great addition to our Pittsburgh office,” said Steptoe & Johnson CEO, Christopher L. Slaughter. “We are always looking for the best attorneys to meet our client’s needs and with the explosive growth in technology industries across our footprint, Jeffrey’s background will be a great asset to our clients and our firm.”

Industry Awards and Recognition

Two Romer Debbas partners, Michael R. Feldman and Alison L. Weisman, have been honored by Best Lawyers. The award is based on peer reviews and feedback and acknowledges attorneys at the beginning of their law careers for “upstanding professional standards and excellence in private practice.” Mr. Feldman and Ms. Weisman were specifically recognized as rising industry stars in the field of real estate law.

Michael Feldman is a partner and manager of the residential real estate department at Romer Debbas’ New York office. His practice focuses on residential and commercial real estate transactions. Alison Weisman is a partner in Romer Debbas’ commercial real estate department. She concentrates her practice on representing buyers, sellers, tenants, landlords, and developers in various real estate and lending transactions. She is also a trained mediator.

Greenberg Traurig was nominated by JUVE Verlag, a business law publisher based in Germany, as the Law Firm of the Year in the Labor and Employment category. The firm was nominated for its “positive, dynamic development over the past year.” The award ceremony will take place on Oct. 27 in Frankfurt where the winners will be announced.

197 attorneys at Ballard Spahr received 330 recognitions in this year’s The Best Lawyers in America guide. Of additional note, 58 Ballard Spahr attorneys have been featured in the Ones to Watch category, which is intended for lawyers at the beginning of their careers. Ballard Spahr attorneys also received 7 recognitions for Lawyers of The Year:

Best Lawyers uses annual surveys to assess lawyers in the field, asking attorneys to evaluate their peers based on professionalism, integrity, and legal skill. Lawyers of the Year receive the highest overall peer feedback for a given practice area and region.

Women in Law

Clifford Law Office partner Sarah F. King is scheduled to present “The Power of Visual Persuasion” at the Society of Women Trial Lawyers’ 2022 Fall Conference in Nashville, TN. A medical malpractice attorney based in Chicago, Ms. King will be sharing her insights on technological innovations and visual storytelling in virtual and physical courtrooms. She has previously presented at events such as the Michigan Association of Justice Medical Malpractice Seminar and the American Association for Justice Annual Convention, and is an active member of the Women’s Bar Association of Illinois and Illinois Trial Lawyers Association.

The Society of Women Trial Lawyers conference provides an opportunity for women practitioners across the U.S. to enhance their trial skillset while building valuable professional and personal connections. This year’s event will be at the Thompson Nashville Hotel on Thursday, October 6, 2022.

The Texas Diversity Council will recognize Foley & Lardner partner Michelle Ku as a 2022 Top Women Lawyers Award winner at a virtual ceremony on September 27, 2022. Ms. Ku is a business litigator known for taking on high stakes trials at the local, state, and federal levels, covering issues related to antitrust, government investigations, class actions, tax, and intellectual property. She and her fellow awardees were selected for their professional success, legal industry impact, integrity, and commitment to supporting other women in the field.

Alyson Brown of Hunton Andrews Kurth has been selected for the National Black Lawyers Top 40 Under 40 for the second year in a row. Inclusion on the list provides access to a national network of leading figures in the Black legal community and requires a reputation for professional excellence and leadership as determined through peer nominations and a third-party research process.

Ms. Brown is a Richmond, VA based employment attorney. At Hunton Andrews Kurth, she handles issues related to unfair workplace practices, labor law compliance, and employment litigation. In addition to her experience arguing before the National Labor Relations Board, Brown is a Program Committee Member of the Richmond Bar Association and Board Member of the Downtown Richmond YMCA. She has recently been listed on the 2022 Virginia Access to Justice Pro Bono Honor Roll.

Copyright ©2022 National Law Forum, LLC

Why Selecting the Right Company Swag is so Important for Your Business and Brand

I recently went to use a pen that I got at a conference from a law firm service provider. It’s my favorite pen. It writes perfectly, it never leaks, it has the perfect consistency and it is a bright color, so I can always find it in my purse.

On the flip side, I have another pen, from a top 10 Am Law ranked law firm with profits of more than $3 million per partner per year that ran out of ink the second time I used it. It’s flimsy and plastic. I was surprised that a firm of this caliber would give out hundreds of these pens to their clients, recruits and prospects.

It’s incredibly important that each touchpoint your target audience has with your brand is truly reflective of your brand.

That means even the pens you hand out at a conference (when we go back to conferences), the coffee you serve, the way the bathrooms look and the tidiness of the reception areas (including ensuring the plants in the reception area are healthy looking) need to be well thought out.

And the kind of swag (or promotional items or tchotchkes as I prefer to call them) you choose to represent your company is much more important than you may think. It’s part of your outward facing brand and can be an easy way to gain positive visibility for your organization.

Let me give you an example. I was a guest in a summer share a few years ago in the Hamptons. One of my housemates walked into the house wearing a baseball hat that said “MoFo.” I said, “do you know what that stands for?” and you can guess yourself what he replied. I told him that MoFo was actually a global law firm. He was shocked. He said he had been given the hat by a lawyer friend of his about 10 years prior and didn’t know (or ask) what the abbreviation stood for. He just assumed it stood for – well you know what.

This is a great example of how the wording and branding on a swag item can make all the difference.

Once I told him MoFo was the name of a major law firm, the hat lost its “cool” quotient to him. Later that summer I saw his once beloved hat thrown on a heap of beach gear in the basement. The MoFo hat had been demoted.

Company SWAG is the abbreviation of “Stuff We All Get” (I personally didn’t know that until I researched this article). It is free stuff and giveaways that employers give out to their current employees, alumni, recruits and clients.

As with so many things in marketing, one size doesn’t fit all, so it’s important to have multiple promotional pieces from which you can choose. Many firms keep closets full of promotional items and have an online catalog to make it easy for employees to choose items when they need them.

It should go without saying that your company branding should appear on every promotional piece.

So, how do you choose awesome company swag that your clients and other target audiences actually want?

There’s a huge difference between being thoughtful with your company swag items and just putting your company logo on the cheapest or coolest items you can find. The benefits of doing the former go way beyond what you might think.

Investing in high-quality swag has the potential to earn you extra brand impressions, build awareness, cultivate strong company culture, and build good rapport between your brand and your prospects.

  • Make sure it’s well-made: The number one rule when considering company swag is making sure it’s high-quality. While the initial excitement of a new or free thing might last a week or so, if it’s not something of true value, people will be over it just as quickly. When you take the time to pick out swag items that are worthwhile, people are going to use it far beyond the first week, giving your swag more longevity and the chance to garner more impressions. If it falls apart, so does your reputation.

  • Think outside of the office. Find something that is useful even outside of the office – it doesn’t always need to be a pen or a flash drive!

  • But sometimes the tried and true works. I have an umbrella from Paul, Weiss, Rifkind, Wharton & Garrison given to me for Employee Appreciation Day many years ago when I worked there. This is the Mercedes Benz of umbrellas. It still works after two decades! It even has a cool wind technology that doesn’t allow it to bend during crazy storms. I carry it with me whenever there’s a bad rainstorm. We always had high-end umbrellas stowed away as giveaway items at several law firms when it rained for client events. Don’t underestimate the power of a good quality basic like an umbrella or a tote bag. Just put your logo on it so you get free publicity. You want your brand to be associated with high-quality items, because you are a high-quality company.

  • Keep your company culture at the forefront when choosing swag items. This one really doesn’t need an explanation. Make sure the items you select truly represent you and your organization.

  • Consider thoughtful details. When planning what kind of items you want to order for company swag, think about which items you can use to relay small details about your company and/or its culture.

  • Make sure your logo/brand name is on each item – and that it’s not too big and not too small. Remember promotional items are walking advertisements for your organization. I still get stopped on the street sometimes when I wear a tote bag from one of my prior law firms – someone will inevitably ask me if I am a lawyer and it’s a nice starting conversation point. I am not a huge fan of doing special logos for an anniversary or special event – I think it’s smarter from a brand and cost perspective to stick to the basics, especially if you are not a household name.

  • Extra points if you can work yourself (or your clients) into the item. Intellectual property law firm Amster Rothstein & Ebenstein has one of the coolest promotional items I’ve seen in years. It’s a metal straw – but it’s not because it’s trendy as a metal straw – it’s because they helped the client obtain the patent for that straw. They actually have the patent number on the item – which is super cool too. So, if you did something novel like this – by all means please use it as your promotional item. And if your clients create items that you can use – even better. Why not support them? It helps to build stronger relationships. One of my prior firms had a program where they would source promotional items and startups from small businesses the firm represented. What a great way to support small businesses and your clients!

Taking the time to pick out the right swag will enhance your brand and reputation, promote your company culture and promote positive buzz your organization.

I’d love to hear more about the promotional items your firm is using.

Copyright © 2022, Stefanie M. Marrone. All Rights Reserved.

How to Practice Law in a Different State

There are plenty of benefits to being a multi-state lawyer.  Besides the most obvious advantage which is expanding your client base, it can also be practical when you live near a border between two different states. So, if you find yourself asking how to practice law in multiple states, you’re certainly not the first.  

In this article, we’ll detail how to become a multijurisdictional lawyer as well as some of the perks and drawbacks involved.

The Benefits of Practicing Law in Two or More States

Greater Client Base

It’s understandably appealing to be able to take on clients in different states.  It’s economically advantageous to generate more business in multiple locations.  Not to mention one state may have more demand for a certain practice area than another which can be practical for tapping into your niche market.

Furthermore, you may have clients that need representation in different states who don’t want to have to hire multiple lawyers.  Being able to offer all-in-one legal services can give you an edge over the competition. Of course, it goes without saying that you’ll need to allocate a bigger law firm marketing budget to market in not just one but multiple states. Or, just be more savvy with marketing strategies, such as familiarizing yourself with email marketing for law firms.

Greater Flexibility

Life events can spring up suddenly, forcing lawyers to relocate to a different state. Some states may only offer bar exams as little as twice a year, and as such, it can cause a significant delay before being able to accept clients. For many lawyers, anticipating the possibility of relocation without the worry of having to lose a second of work is an important advantage. So, ensuring they can practice anywhere is a nice added security to their business.

Ethical Responsibilities of Practicing Law In Multiple States

As more and more lawyers are working remotely since the onset of COVID, many are  accepting clients in other states.  Unfortunately, in many cases, these lawyers are violating the rules.

Rule 5.5 of the American Bar Association Model Rules of Professional Conduct states that lawyers may not practice in jurisdictions where they are not admitted. The consequences of violating these rules can range from a fine to disbarment depending on the gravity of the violation.   That being said, there are some exceptions to this rule.

For example, a licensed attorney may provide legal services temporarily in a different jurisdiction as long as they are associated with a lawyer who is admitted in that state.

How to Practice Law In Multiple States

Check For States That Offer Reciprocity

Some states offer reciprocity if you meet certain conditions.  Usually, these conditions depend on the amount of time you’ve been practicing and they may consider you eligible to practice in their state depending on the state bar that you’ve already passed.

It’s important to note, however, that you should never assume that just because a state offers reciprocity, you’ll be qualified.  It’s always important to contact the reciprocity state bar to ensure you are up to date with the latest policies otherwise you could risk serious disciplinary consequences.

Take the Uniform Bar

You might need to brush up on your legal education to retake the Uniform Bar Exam. The  Uniform Bar exam, also known as UBE, is a version of the bar exam that lets you practice between states with greater ease.  It’s important to note, however, that each state has its own bar admission requirements for the examination, and the passing score may vary by state. So, although it can be a solution in some scenarios, it’s not a sure thing. This is certainly more convenient than taking New York State, North Carolina, or any other state’s bar exam each time.

Take The Bar Exam For The States You Want to Work In

The most practical way to practice in another state is to pass the bar for that state.  However, there are significant costs and challenges involved which may not be ideal for everyone, and taking the UBE or opting for a state that offers reciprocity is much more common.

Take on Federal Court Cases

In theory, if you’re allowed to practice law in any state then you should be able to do so out of state. Yet, there is still some debate around this topic, and it’s still possible to find yourself in hot water with the state bar if you take this route.

Is Getting Licensed in Multiple States Right For You?

In the big picture, it’s much more convenient to practice in one jurisdiction for your entire career.  Yet, lawyers looking to take their practice to the next level may choose to pursue the route of becoming a multi-state lawyer despite the challenges.

The good news is that thanks to advancements like the UBE and reciprocity laws (as well as advancements in law firm technology), practicing law in another state is much easier than it was 20 years ago.  Deciding whether to get licensed in multiple states will come down to your unique circumstances and above all, how much time you have on your hands.

Getting licensed out of state requires a time commitment and administrative pile-up that may be difficult depending on your firm’s current workload.  Putting in the work it takes to acquire additional state licenses will be much easier if your practice is streamlined with the help of modern legal technology like a CRM and client intake software.  Not only can you access your firm from wherever you are thanks to cloud technology, but automation can help you stay on top of your most important tasks, and put your firm on autopilot while you’re focusing on passing the bar in another state.


FOOTNOTES

Shari Davison,  Reciprocity: What States Can You Practice Law?
https://www.onbalancesearch.com/reciprocity-what-states-can-you-practice-law/

Richard J. Rosensweig, Unauthorized Practice of Law: Rule 5.5 in the Age of COVID-19 and Beyond August 12, 2020
https://www.americanbar.org/groups/litigation/committees/ethics-professionalism/articles/2020/unauthorized-practice-of-law-rule-55-in-the-age-of-covid-19-and-beyond/

©2022 — Lawmatics

Law Firm Specialization: Why It Matters

While in theory, the idea of casting a wider net may lead you to believe that you’ll catch more fish, the truth is it doesn’t always apply to business. When it comes to catching customers, the more you appeal to one specific kind of customer, the higher your success rate, and the more qualified you’ll be at what you do. Practicing law is no exception. In today’s age, more and more law firms are starting to recognize legal specialization as a necessity for tapping into their target market. Not only does it benefit clients, but it also benefits legal professionals. 

Benefits for Lawyers

Better Client Relationships

When you specialize in an area of law, you intimately know your niche, whether that be corporate law, health law, criminal law, environmental law, or international law.  As such, you can provide the best possible representation to your clients and better pinpoint solutions to their problems as a certified specialist. Exclusively specializing also means that you are well informed of all of the latest updates, news, legal issues, strategies, and changes in that area of law. When compared to having a general understanding of the law, this is a tremendous benefit to your clients since you offer tailored legal guidance unique to their circumstances. A law practice that has handled hundreds of cases similar to their clients’ can anticipate and navigate the nuances of such a case on a much deeper level than someone who doesn’t have the same kind of experience under their belt.

Less Competition

As an expert in a very specific area of law, you effectively position yourself as the easy choice to opt for you over a competing attorney with a more generalized approach. In essence, your competitor pool shrinks significantly. General practice attorneys with a wide breadth of practice areas are going to be competing with every other such law office within a ten-mile (or more) radius. Yet, if your law practice specializes in boat accident cases, you’re likely one of few options, if any, in your respective region, thereby lowering your marketing costs, and potentially increasing client acquisition volume for this legal specialization. Assuming your reputation is top notch, the more specific you can be about your legal services, the more challenging it is for competitors to keep up with you.

Improved Visibility

Law firms that choose to specialize don’t just stand out, but are often featured in publications related to their practice area. The more you can partner with local businesses that are related to or adjacent to your area of expertise, the greater your sphere of influence. For instance, if your practice focuses solely on estate planning for the highly wealthy, you’ll likely opt to leave business cards where the wealthy are bound to spend time, like country clubs, civic clubs or auctions. Get creative with candidates in your referral network; it’ll pay dividends over the lifetime of your business.

Greater Satisfaction

As the saying goes, “do something that you love and you’ll never work another day in your life.” When choosing what you want to specialize in, consider an area that speaks to you on an emotional and even philanthropic level. One of the benefits of choosing a niche is doing something that you truly enjoy day in and day out. Not only will you get a real sense of fulfillment on the best days of your profession but clients can easily sense when your practice area originated from a true passion of yours. Plus, it’s always more advantageous to be a big fish in a small pond as opposed to a small fish in a big one.

Increased Expertise

Expertise involves becoming a thought leader in your area of law. Naturally, mastery requires experience. Attorneys who bounce between different types of cases don’t have the same familiarity with the nuances and challenges as someone who handles the same type of legal representation every time. While it’s always a good idea to have legal malpractice insurance, specializing in one niche area of expertise may also lessen the chances of your law firm having to put it to use. When you are recognized as an expert in your specialization area, you don’t just attract more clients, but you also win more referrals through client trust.

Better Efficiency

Completing the same workflows and legal documents over and over again in quick succession equates to faster completion, since you know them inside and out. As such, specialized lawyers can master the administrative side of running their law firm in a fraction of the time.

In today’s legal climate, more and more legal professionals are turning to automation tools to streamline recurring processes such as client intake and billing. Time-consuming document generation, for instance, can now be done in a matter of seconds rather than hours thanks to automated workflows.

Greater Profitability

When your practice is specialized you’ll increase your value thanks to the power of referrals.  Concentrating on one type of case brings extra knowledge and experience to the table that clients yearn for, who will in turn refer you to their friends and family. Since 80% of a law firm’s business typically comes from referrals, the more targeted you are, the more your practice may benefit from word of mouth.

As a result of your greater understanding of the inner workings of certain cases, you’ll develop a strong reputation for getting clients the results they’re after, ultimately increasing your overall profitability. The more you can offer experience paired with efficiency, the more work you can take on, increasing your overall revenue.

Benefits for Clients

Improved Guidance

When a client seeks out a legal professional that is well versed and focused on their particular needs, they in return receive much better guidance for their specific context. Beyond the legal support that a specialist offers, also comes a deeper understanding of the emotional needs of their client. For more turbulent cases such as divorce cases or immigration, a specialized lawyer can be an enormous benefit to the mental well being of those they have trusted with their case.

Increased Network

Specialists have a wide network of other experts that they can use to the client’s advantage. Because they have a more comprehensive list of contacts to support their case, clients have greater access to leading experts who can provide adjacent services and even strengthen their case.

Better Success Rate

There’s a reason why general practitioners in the medical field typically don’t perform spinal surgery — because it requires unique skills. The same logic can be applied to law. Attorneys specializing in a particular field generally have a higher rate of winning cases in court or settling successfully. Specialized lawyers who see the same case types day in and day out can offer a much higher success rate based on experience and dedication. Those who hire specialized attorneys generally are more at ease knowing they’re in good hands when it comes to their legal proceedings.

When is a Good Time to Consider Specialization?

It can be unnerving to dive into specialization from a generalized legal focus, so it’s important that you read the room first. In order to ensure that whatever you choose to specialize in will deliver the kind of demand that you hope for, answer the following questions using the data at your disposal:

  • What trends are you seeing in the types of cases you currently manage?
  • What is your success rate in those cases?
  • How satisfied were the clients?
  • Which cases have been the most lucrative for you?

If you notice that you take on a considerable amount of one type of case that’s yielding happy clients, then it’s a good indication that it would make a great choice to specialize in. If you don’t feel like you have the experience or know-how to call yourself an authority on one particular niche yet, then allow yourself more time to grow.

Ultimately, there is no defining moment that is the same for every lawyer who chooses to specialize. It all comes down to how much knack and drive you have for one kind of legal resource.

How to Identify Your Specialization Niche

1. Create a Vision

Every achievement starts with a vision. Your vision will be the very foundation of your overall success, and how you are perceived as a brand. When creating your vision, take into account not only your skills but also what drives you. How do you see yourself representing your clients and what do you hope to achieve for them? Are you passionate about one type of law specifically, such as civil rights, intellectual property, or family law? What do you love about practicing law and why? Let these answers be your guiding light when forming a vision for how you hope to stand out.

2. Consider Your Experience

First and foremost, it’s ill-advised to choose a niche that you have no experience in. Choosing to specialize in something that you aren’t well versed in would not only be setting yourself up for failure, but it’s a risk to any potential clients who choose to come your way.

One of the greatest tools you have for narrowing down your choices is consulting with other more experienced lawyers and mentors. Ask them for their advice based on personal stories, recommendations, and experience-based guidance.

Talk to other lawyers that specialize in the area you’re considering and pick their brains. Be direct and ask the questions that matter most like:

  • What are the biggest challenges in this area of law?
  • What are the greatest rewards?
  • What is the success rate?
  • What are the long-term implications?

When you hear about the advantages that law firm specialization can offer, it may be tempting to jump in head first. Yet, it’s important to step back and assess all of your choices. Weigh out the pros and cons, and go back to your overall vision.

Rushing in too quickly can lead to prematurely pigeon-holing yourself into something that ultimately restricts you from your full potential and passions.

Pick a Specialization and Pursue it

There are many advantages to becoming a specialized legal professional. If you can manage to pick a niche and master it, you won’t just find yourself with less competition, but you’ll have a greater devotion to practicing law.

©2022 — Lawmatics

Episode 3: How Law Firms Can Benefit From CRM Technology With Chris Fritsch of CLIENTSFirst Consulting [PODCAST]

Welcome to Season 2, Episode 3 of Legal News Reach! NLR Managing Director Jennifer Schaller speaks with Chris Fritsch, Founder of CLIENTSFirst Consulting, about how law firms can thoughtfully and successfully integrate customer relationship management systems, or CRMs, into their daily operations—boosting contact management, business development, and client service in the process.

We’ve included a transcript of the conversation below, transcribed by artificial intelligence. The transcript has been lightly edited for clarity and readability.

INTRO  00:02

Hello, and welcome to Legal News Reach, the official podcast for the National Law Review. Stay tuned for a discussion on the latest trends in legal marketing, SEO, law firm best practices, and more.

Jennifer Schaller

Thank you for tuning into the Legal News Reach podcast. My name is Jennifer Schaller, the Managing Director of the National Law Review. In this episode, I’ll be speaking with Chris Fritsch, who’s the CRM and Marketing Technology Success Consultant and Founder of CLIENTSFirst Consulting. She’s going to talk to us about CRM technology, specifically how it impacts law firms. Chris, would you like to introduce yourself?

Chris Fritsch

Happy to do so! I am Chris Fritsch, I’m actually a CRM Success Consultant. And no, that is not an oxymoron. For the last over 15 years, my team at CLIENTSFirst has helped hundreds of top firms succeed with CRM and related and integrated technology. I’m actually a little bit of a recovering attorney, which is sort of how I got into the industry. And it’s just been a great 15 years working together with top law firms.

Jennifer Schaller

What prompted you to start CLIENTSFirst Consulting?

Chris Fritsch

You know, that’s a good question. I actually worked at a CRM company years ago, and those companies are terrific at building and selling and installing and implementing software…not necessarily as great at being able to take the time to get to know each law firm to really understand the firm’s needs, the requirements, the culture in order to really help them succeed with the technology. So I saw that was a real opportunity to be able to help clients succeed. The company’s called CLIENTSFirst. And so we’re really focused on sharing information, ideas, best practices for success gained from years of experience doing this, and it has been a great 15 years of growth. And the most important part is we get to help clients.

Jennifer Schaller

So what are the main reasons that prompt law firms to implement CRM systems?

Chris Fritsch

CRM systems are about communication, coordination, and client service. And of course, business development. Law firms of all types and sizes really are focused on those areas. So I think that’s why CRM has been such an important piece of technology over the years.

Jennifer Schaller

What are the most common uses of CRMs in law firms?

Chris Fritsch

Use in most firms starts with contact management and list and event management. Those are some of the fundamental capabilities that CRM systems provide. You know, in law firms we write, we speak, we do events and webinars and seminars. That’s a really big need, and CRM fills that need very, very well. These are things that are maybe not exciting, but essential. So that’s creating a centralized repository of information that can be clean and correct and easily updated. That’s usually where firms start. Being able to have marketing build and manage the list to be able to get all the events done and managed, to be able to allow the attorneys or assistants to update lists, and just basically making sure that clients and prospects and other contacts are getting the information that the attorneys and the law firm need to put out there. You know, because as attorneys, if we can’t share information about our experience and our expertise and changes in the law and capabilities, then it makes it really challenging to develop business. And so that’s where CRMs start, but what we’re seeing more recently is a focus on more advanced business development features. Business development has taken a little bit longer in legal than in some other professional services, but I think we’re getting there. So we’re seeing a lot more emphasis on those tools right now. A lot of people right now are actually switching CRM systems because they want to get some more of these advanced business development features.

Jennifer Schaller

What are some of the features law firms should be implementing but that aren’t being utilized enough, in your opinion? Or does that kind of piggyback on business development stuff?

Chris Fritsch

Yeah, that’s a big piece of it. The big thing is activity tracking. That’s one of those things that everybody agrees, it would be incredibly valuable to know who’s taking who to lunch, who are we doing proposals with? Who are we having phone calls and meetings with? But the challenge with that is those have to be entered manually. A lot of things in CRM we’ve been able to automate, but that’s one that you really just can’t because the information lives in the attorney’s head, right? So it’s got to be done, and you can’t have computers or even assistants doing that really well. But everybody wants the information. So I think that has been a big challenge. Probably one of the biggest firm challenges is to get attorneys to sort of function that way and think like salespeople, whereas outside of legal, you know, you can mandate behavior and do reporting on activities. In a professional services, specifically, in a law firm model that’s a little more challenging, there’s sort of a hesitancy to mandate anything. So we do have challenges with that. That also sort of turns into adoption. You know, that has always been a challenge as well. In a law firm time is money, literally. And so anything that they have to do in terms of technology that takes away from serving the clients and frankly, billing time, there’s got to be a lot of value there. Any of the features that require them to do data entry are going to be challenging because we have taken a little bit longer to be focused on business development. There are really advanced pipeline features in a lot of the CRMs, outside of legal, and now in some of the ones that are vertically focused for law firms, but getting attorneys to enter data into a pipeline is probably going to be challenging, and it may not be the highest and best use of their time. And so a lot of firms that are dealing with implementing pipelines, they’re having internal business development resources actually do the data entry, and then just getting the information related to reports and pitches and things. Let them give that information to the attorneys to use when they need it.

Jennifer Schaller

These people are billing their time in six-minute increments. What are some of the built-in features of CRMs that help law firms capture the things that lawyers are reluctant to do other than…. obviously, there needs to be a culture change. But what are some of the things that make it smoother?

Chris Fritsch

So there’s actually a tool that I’m a big fan of called ERM, or enterprise relationship management. And it is a technology most of the CRMs in the legal vertical do have built in, but there are also some freestanding systems. And what they do is they create the contacts from the signature blocks of the emails. So the attorneys don’t have to deal with contact data entry and collection and updating. In the past, the systems worked with sort of an Outlook Sync process where the contacts would flow in, but lately, people don’t use Outlook like they used to. I mean they still use it for email and for calendar, but not so much address books. So the problem with address books was people were putting data in but never removing it. And so you just ended up with more and more contacts. And you know, they’re not particularly relevant anymore. These ERM systems will create good contacts, because frankly, if you just got a signature block, the information is probably good. And so you enter that data–it does it automatically. And so attorneys don’t have to do data entry, which is great. But it also creates a who-knows-who relationship, which is something we really want to be able to capture. You know, if you want to pitch some client or get a connection in a corporation, you might want to know who in the firm knows that person. The ERM uses an algorithm based on recency and frequency of communication to tell us not just who, but how well they know that person based on frequency and recency of communication. There are also some calendar capture features that are available; I think ERM is really the one that has changed the game. Also being able to have a connected email and e-marketing and event management tool that allows the data to flow seamlessly between the systems is incredibly important, because otherwise you end up with disconnected databases and double data entry, and I think e-marketing systems are also a really big deal.

Jennifer Schaller

Okay, wow, I didn’t know the depth of that. That’s really interesting. One of the things that you’ve touched on is lawyers and law firms and culture and change, so how large, or substantial or established, does a law firm need to be to benefit from a CRM?

Chris Fritsch

Pretty much any firm can benefit from CRM, because again, it is the fundamental communication coordination, client service, business development that’s important to every firm. So they’re different types of software for different sizes of firms. And I’ve worked with the largest firms in the world, and we help them find systems that meet their needs. But every once in a while, I’ll work with a solo or small firm, and they have different needs, and, of course, different budget requirements. And so they have different types of products that make sense for them. But I think pretty much anybody from the largest firm in the world to a solo can benefit from CRM.

Jennifer Schaller

Knowing that small law firms are not a homogenous group, meaning that intellectual property law firms or even a solo can have different needs than a family law practitioner, what would be some of the core features that even smaller law firms can look for in CRM systems, or should kind of have as, like, table stakes?

Chris Fritsch

Smaller firms for the longest time had challenges trying to implement CRM because they were licensed models, they require a lot of professional services to install and implement, and they required a lot of staff to manage, and that’s contrary to the small firm model. Ideally, in a perfect world, they want a less expensive option that doesn’t require as much training and ongoing sort of care and feeding. And what’s happened is most of the software providers have gone to a subscription model because it makes it easier to budget for the software over time, you don’t have a big upfront cost, and a lot of them have also moved to the cloud.

Jennifer Schaller

You’ve touched a couple different times about large law firms having multiple data stewards and dedicated CRM people, but smaller firms or firms that are not in the select 100 may not have those resources. What type of staff is required to succeed with CRM technology, or what tasks would need to be at a bare minimum assigned to somebody within their teams to get it up and running or to make it a viable option within the firm?

Chris Fritsch

The larger the firm and the more complex the system and processes required, the more staff and the more resources that are going to be needed, the more training that’s going to be needed, the more communication and planning and strategy. That’s always important. But right now we’re working with a firm that has a database with 7 million records. They’re bringing together information from databases all over the world, that’s a big undertaking. Whereas the most essential staff in bigger firms with a bigger implementation, you’re going to need perhaps a CRM manager, whereas a smaller firm with a smaller implementation that’s less complex, you’re not going to need a CRM manager, perhaps you might just need someone part time. The most important staff though, is in the area of data quality, because data degrades rapidly. And now with all the changes taking place, people are changing jobs left and right. So data is degrading faster than ever, and you’ve made this investment in the technology. But as an attorney, I can tell you, if the data is bad, then the system is bad, and I’m not going to use it. So you definitely have to focus on that data to get the return on investment from the technology. And you know, firms don’t necessarily want to hire a data steward, but it’s super important to focus on.

Jennifer Schaller

So firms are stretched, and plus, you touched upon too, everybody’s changing jobs. So it’s really tough for smaller firms to hire, any smaller organization to hire. So how does the firm stretch their existing staff to implement or, you know, make viable a useful CRM system, because as you mentioned, it’s only as good as its data?

Chris Fritsch

You know, one of the biggest trends we’re seeing is the move to outsourcing and having that really escalate. You know, firms have been outsourcing data stewards for decades, well, for at least the 10, 15 years that I’ve been around, because not every firm has the luxury of being able to hire a data steward or an experienced CRM manager who’s done a rollout before. Again, most firms don’t have the ability or even the desire to have their internal people doing data work. And so they’re turning to outsourcing to fill these positions, because the great thing about it is you can get the experience and the expertise, and just the amount of hours that you require. So especially for smaller firms, you wouldn’t want to hire a 40 hour a week data steward anyway. But with outsourcing, you can get you know, 10 hours a week, 20 hours a week, whatever you need during the rollout, and then you want to focus ongoing you might need even less, but you need to dedicate those resources, and you don’t have to do it with internal people, because data quality work is not particularly fun, and a lot of people don’t enjoy doing it. But yeah, we outsource a lot of data stewards. It’s actually our highest growth area right now because of the focus on outsourcing.

Jennifer Schaller

Okay, so a part of lawyers is–speaking lawyer to lawyer—a bit of a control freak. You might not have noticed or heard about it, but you know, anyway. So outsourcing is kind of a scary thing to them, meaning, you know, a smaller firm might be in the devil of not being able to hire somebody or being able to hire too much of somebody, as you indicated. So with outsourcing, what would they look for?

Chris Fritsch

I think number one is experience and reputation. All of our folks that do data work, you know, we try to hire the right people that have the aptitude to actually enjoy the work and then train them, train them and retrain them. We spend a lot of time really getting them to understand not just how to use the CRM tools and how to do the data quality, but also to do the research and how to also understand the law firm. There’s a lot of complex relationships in terms of financial institutions, I think that’s a really big piece of it, you know, having a lot of knowledge and experience doing it. For a lot of our clients, very, very large law firms, they have often significant privacy and security issues, so we have a team of US based people, because that helps them with challenges around GDPR. So you may want to ask, where are your people based? Can they do background checks is a really big important thing.

Jennifer Schaller

Oh, wow. That’s true, yeah, especially if they’re doing government or any type of work. You brought up some really good points there. So you mentioned training, so law firms that would consider outsourcing would be then benefiting from the training not only that they receive from a company like yours, but experience that they’ve picked up from other law firms along the way.

Chris Fritsch

The training is challenging. So you know, you have to train and retrain, you know, things are changing all the time with the software and systems. And it really is a big component, making sure that you have good experienced people. And then we also have a team that does quality checking as well, because I think in law more than any other industry even more than in other professional services, you mentioned earlier, you know, being a little bit of a control freak, we want good data. Outside of legal people are thrilled to have data quality of 70% . “We have automated data sources that’ll get you 70% correct data.” In a law firm 70% would get you fired! Right?

Jennifer Schaller

We got 70% of your lawsuit correct! That tends to not be an acceptable thing for attorneys, and I think they tend to hold anybody else that they work with or any product that they use to similar standards. It’d be really challenging. What are some of the things, not that there’s any silver bullet–and I’m sorry, legal marketers, there isn’t–to kind of overcome some of the, you know, maybe they were at another firm, or they had a friend who had a problem with it. Lawyers actually talk amongst each other and have a tendency to, well, they’ll discount it for their own clients, other people’s experiences, but if they have a lawyer friend who went through something, and it was negative, that’s, you know, good as gold. How do you overcome some lawyers’ reluctance, because of bad data quality, which seems to cause the problems to incrementally kind of chip away at that?

Chris Fritsch

You know, we used to think—and these things are tied together–so bad data is a big challenge. And adoption is a big challenge, getting attorneys to “use” the system, right? So we forever have defined adoption as attorneys would get trained, they would go through their data, they would, you know, mark the ones that they wanted to share or didn’t want to share, the assistants had to get involved and it all sort of fell down because again, we’re busy, and you know, time is money, literally. You know, I think the adoption challenge is tied to the data. Because again, if the data is bad, they don’t want to use the system. So going to these more automated ERM systems that pull in good data, I think it’s time that we really need to redefine adoption from attorneys doing data entry, which is probably not the highest and best use of someone’s time who’s billing $500, $200, $1,000 an hour, whatever it might be, let’s do more automation. And the other thing with the data is, it used to be the researchers would say 30% was degrading each year. Now it’s got to be closer to 50% with, you know, the Great Realignment and you know, staffing and people working from home and hybrid and people are moving and companies are starting and ending and getting acquired. So if you don’t focus on the data, if you don’t have good data, it’s going to hinder adoption, and it’s sort of all tied together. So we have to really sort of think through things, and that’s, again, why we are so focused on the ERM methodology. It minimizes attorney data entry, it maximizes good data, it automates the process, it really just is a very helpful tool.

Jennifer Schaller

That’s really interesting. Anything that can be used to make it simpler to get it off the ground. You mentioned data quality. And you mentioned ERM software implementations or kind of pairing it with the CRM system or having a CRM system that has that built in as a way to help with data quality. What is the part, you mentioned, that’s still gonna leave maybe 20 to 30% of the data in there? How are ways that law firms or outsourcing groups or, maybe I got the statistic wrong, cleaning up the balance of that, or is that, even within law, acceptable?

Chris Fritsch

What we’ve arrived at is a process that I have named True DQ, and it’s a multi-step process. For some firms, it might just be one step, an outsourced data steward. But for some firms, it’s multiple steps. First thing that you need to do is assess the mess. Figure out how bad is your data, if you’re getting a new system, right, you may not want to move, if you’ve had your system, 10, 15 years, you probably don’t want to move all that data, you definitely don’t want to clean all that data, it can cost more than the CRM system. So helping figure out strategically, what are the right contacts to move, key client data, top lists, getting all that data together and getting it cleaned and deduplicated  because, again, as, attorneys, we all know the same people. Some of us have good data, some is bad, and it’s got to be researched but you want to minimize the amount of data so you want to do a really strong assessment process upfront. And that’s if you’re changing systems, or if you’re just trying to clean your existing system, you want to focus your limited time and resources where you can get the most value. So then there’s an automated data quality process. So you know, as I said earlier, automated, you know, only gets you part of the way there. But when you’re doing projects, like, sometimes we’re doing projects, where there’s 7 million records. You couldn’t hire enough people or have enough money or time to clean all that data. So you can take an automated process that will get you quickly and cost effectively part of the way there. And then you know, at each step in the process, you can say that’s good enough, or I want a cleaner, I want it better. And for a lot of law firms, they want it as clean as possible. And so the final step would be to add data stewards to kind of finish off the remaining data that couldn’t be automatically matched. And also we have a quality checking process to quality check the results of the automated process as well. There’s a lot that goes on to keep good data clean and correct and complete, but it’s absolutely imperative and essential to CRM success and people are investing a lot of money in these systems. They should be getting value from them.

Jennifer Schaller

I know you can’t, us lawyers are all profound individuals, lump them all into one group–

Chris Fritsch

We’re all special snowflakes.

Jennifer Schaller

We are all special snowflakes! But if you have noticed one trend, is it if the data is better, there’s more chance of a successful adoption in use, or does that tend to be one of the biggest hurdles to overcome?

Chris Fritsch

A lot of the new systems that are ERM focused, the adoption model changes a little bit. So before with sort of the CRM systems that have been around longer, the idea was an Outlook Sync. And then everybody used Outlook. And so the contacts–you know, in a law firm, things are sort of inside out, we don’t just join the firm and get given the keys to the CRM, here are the contacts and clients. Instead, they come in with the attorney and new lateral joins, and the contacts are with them. And so we’ve had these tools to bring in Outlook data, and that required training and installations at the attorney level, and then the data would sync back. And if it was wrong, and it changed somebody’s Outlook, you’d hear about it. With the new ERM methodology, and or maybe a one-way sync, so we’re not, you know, pushing potentially incorrect or what people think might be incorrect data back into the Outlook for the attorneys to see, instead we’re gathering the data through an electronic process, we’re getting good data from the signature blocks, we’re bringing that data in. For some of us, what we do is we actually enhance the data with things like industries, because industry marketing is a big priority for a lot of firms. And nobody says they do it really well, you either have to spend a lot of money to get subscriptions, or you have an automated process, or you can do it manually. And so we try to help firms think through strategies to enhance the data when their data stewarding it with company information, size of company, industry of company, so then you don’t have to rely as much on the attorneys. Like they’ll come and say, “Hey, we want to pull an energy list. Because we’re doing an energy seminar.” Well, you can’t do that. “We want to pull a list of clients.” But without a time and billing integration, you really can’t do that. So these new tools are really helping automate that process, so suddenly, maybe I can’t pull 100% perfect energy or manufacture or whatever, pharmaceutical industry list, but I can get you at least a really good start, and then you can add individuals to it. These are tools we didn’t have years ago. And they really are taking the attorneys out of the process and taking them out of the data entry role. And instead, let’s give them the data they want. Let them be consumers of the data, let’s get them the reports that they need to do what they need to do and minimize the time required. Sometimes it’s staff that are helping to support these processes as well. So never underestimate the power of having good folks to help the attorneys get what they need. And so we’re going to define it instead of attorneys entering data into the system, it’s going to be attorneys getting value out of the system. And that’s how I think adoption needs to be redefined.

Jennifer Schaller

So once they see the value in it, they begin to adopt and of course they see another attorney getting value out of it.

Chris Fritsch

And while you might use ERM, when you implement a CRM you have to consider both a macro and a micro. So we’ve got to be able to get the contacts to do the list to do the events. That’s sort of a core component of it. And if you don’t get that data, you can’t do the other things like the fundamental who-knows-who and the business development. So a lot of firms are going to, “Okay, let’s do an ERM model and capture the context.” And most of the attorneys then don’t have to be users of the system. Instead, you can give licenses to key business developers or practice group leaders or whoever might need the information. And they have the data that they need to do what they need to do. But the day-to-day work of the attorneys is they can focus on the clients.

Jennifer Schaller

That’s interesting to hear, and good to hear actually, that it’s rolling out a lot better. You founded CLIENTSFirst Consulting 15 years ago. I’m not trying to age you, you must have founded it when you were 15 and, you know, even more of a prodigy. Name some of the ways that not only things have changed over the last 15 or so years, but some of the incremental successes I mean, it might have been a small firm, it might not resonate, but what are some of the wins that you’ve had, or some of the ways that you’ve been able to help firms succeed over the years?

Chris Fritsch

A key thing that we do, I think, that firms have found particularly valuable is called a CRM Success Assessment. And so whether you’re getting your first CRM system or you’re looking to change systems, or just improve your current implementation, we come in really getting to know the firm. So we do meetings with key stakeholders throughout the firm to really understand their different needs and requirements, and document that. The last thing you want to do is oh, we need a CRM, let’s figure out what everybody else is using, because that has proven over time to be a recipe for disaster. Instead, it’s all about your unique firm, your needs, requirements, and culture. And so we document that for the firms and then we help them go through a selection process where we take the information from the assessment and turn that into what we call a vendor demo roadmap that we can provide to the providers so that they can follow a roadmap during the demonstration. “Hey, focus on these things that the firm really cares about. Let’s compare apples to apples. Let’s put together the right proposal and get the right technology.” Because that’s the first thing is making sure you get the right system. The other thing is back many years ago, success was defined as, “We’re going to roll it out all at once and everybody’s going to use it.” Right? All the attorneys are going to log in every day. Well, I think it’s been 20 years, and it hasn’t happened yet. So again, we’re sort of redefining success doing the macro for the whole firm, but then really being able to, and this sounds a little counterintuitive at a big firm, but you really focus on the micro. Let’s get the macro right, you know, lists and events. But then let’s find the strong leader that has a problem to solve or a process to improve. And the beauty of CRM is it can do 1,000 things, the problem has been it can do 1,000 things, you should probably do three, or maybe even one. And so you get all these tools, but you only want to implement one here. And then you know, each group might want to do something a little differently, one group may actually track activities, there’s a big firm, we’ve worked with that one group is really focused on activity tracking. And so then configure the system to support that one thing, build the reports out the processes around it, the training materials around it, and you train that group on that thing, and maybe just that thing. You know, but then you might have, you know, a labor and employment group that does a lot of events, and webinars and seminars. Let’s show them how to manage the invitation process and add people to lists because they care about that. And so you focus on special snowflake scenarios, one group at a time, and you call them a pilot group. I had a smart Managing Partner say to me, you do a pilot group, and you get them success, you communicate that success, and you do another pilot group, and everybody feels like a special snowflake. Everybody gets their needs met. But it’s not quick. But it’s not designed to be quick, because CRM is not a project. It’s not an initiative, it is a fundamental improvement in how the firm manages its most important asset, its relationships. So as a result, it never really ends. And so if you do it in little pilot groups, you know, you’ve got forever to get better at it. You know, a lot of it is sort of daunting, you’re like, “Oh, our data is terrible.” Well, that’s okay you know, you don’t have to clean it up 100% right now, you want to do it in pieces and get successes, do it in increments, focus on top clients, focus on, you know, one group is doing an event, focus on their lists. There are a lot of different ways to do it to be effective, and get incremental successes, because they do they all add up.

Jennifer Schaller

Start with a coalition of the willing. Thank you, Chris, for going through some of the pilot groups at larger law firms, that sounds like a good way to find some early successes and kind of replicate it, but maybe in a customized form with different groups within a firm. But again, the majority of law firms are small. And while it’s great to learn from what the larger firms are doing, are there any initiatives, you know, to help smaller firms, either within your company or industry-wide, to work with CRMs?

Chris Fritsch

There are definitely some products out there for smaller firms. But what I have seen over the years is it’s been a little challenging because of the resource constraints and the staffing constraints. And so for years, smaller firms would come to me and say, you know, can you help us find a system? And you know, now the software is less expensive because of the subscription model. But the professional services has always been $50,000 plus dollars. And for a smaller firm, that’s without integrations. You’re looking at a lot of money to do the professional services. And so we’ve actually come up with a new piece of software we’re about to come out with that, hopefully, is going to make it easier for smaller firms to get a system to do what they need to help capture and augment the data and do lists. And so we’re pretty excited about that.

Jennifer Schaller

Okay, so if I can ask, what are some of the features in the product that CLIENTSFirst has coming out that helps small firms?

Chris Fritsch

As you can imagine, because I talk so much about it, I really think ERM is a fundamental piece of it. And we’re also going to be doing data cleaning, because obviously that’s a big focus for us as well and data augmentation with the things that we talked about, business information and industry information. And we’re going to make sure the data is clean and correct and complete. And we’re also going to have a built-in email functionality too. So it’s all integrated into a single platform to help smaller firms succeed as well. So the largest firms in the world, they need a certain type of software, and we thoroughly enjoy helping them succeed. And we just think that the smaller firms could benefit from some additional options.

Jennifer Schaller

That’s good to hear. Otherwise, a whole portion of the market is underserved. As always, thanks to Chris Fritsch from CLIENTSFirst Consulting for joining us today and for updating us on the nuances of CRM, specifically in the legal world or in the law firm environment. Law firms have such a challenging time to know where to start or what to do with what they already have. And thank you for helping us understand some of those steps or decision trees that go into law firms or especially smaller firms picking a CRM system. Thanks, Chris.

Chris Fritsch

Happy to help and thank you for the invitation to be here.

OUTRO 

Thank you for listening to the National Law Review’s Legal News Reach podcast. Be sure to follow us on Apple Podcasts, Spotify, or wherever you get your podcasts for more episodes. For the latest legal news, or if you’re interested in publishing and advertising with us, visit www.natlawreview.com. We’ll be back soon with our next episode.

Copyright ©2022 National Law Forum, LLC

What Employers Need to Know in a Post-Dobbs Landscape

On June 24, 2022, in Dobbs v. Jackson Women’s Health Organization, the United States Supreme Court overturned both Roe v. Wade and Planned Parenthood v. Casey and held the access to abortion is not a right protected by the United States Constitution. This article analyzes several employment law issues employers may face following the Dobbs decision.

Federal Law

The Pregnancy Discrimination Act (PDA) prohibits employment discrimination “on the basis of pregnancy, childbirth, or related medical conditions.” In construing the PDA’s reference to “childbirth”, federal courts around the country have held the PDA prevents employers from taking adverse employment actions (including firing, demotion, or preventing the opportunity for advancement) because of an employee’s decision to have an abortion as well as an employee’s contemplation of an abortion. The PDA also prohibits adverse employment actions based upon an employee’s decision not to have an abortion. So, for example, an employer would violate the PDA if it pressured an employee to have, or not to have, an abortion in order to keep her job or be considered for a promotion.

State Law

Several states have implemented “trigger laws,” which impose restrictions or categorical bans on abortion following Dobbs. In addition, states such as Texas have enacted laws that allow individuals to file civil actions against entities that “knowingly engage in conduct that aids or abets the performance or inducement of an abortion, including paying for or reimbursing the cost of an abortion through insurance or otherwise.” Relying on that law, Texas legislators have already threatened at least two high profile employers for implementing policies which reimburse travel costs for abortion care unavailable in an employee’s home state. Although the Texas statute is currently being challenged in court, its text provides for statutory damages “in an amount of not less than $10,000” for “each abortion . . . induced.”

Although the issue has not been litigated yet, courts will likely have to decide how the PDA’s protections interact with a state’s anti-abortion laws.

Employer Handbook Policies and Procedures

The Dobbs decision may also impact workplace morale and productivity. Accordingly, employers should consider reviewing their handbooks as well as policies and procedures, with human resources and managers to ensure requisite familiarity with the employer’s social media policy, dress code, code of conduct, and how the employer handles confidential health information. Employers should be prepared for increased public expression from the workforce—including social media posts, discussions with other employees and third parties, and wearing clothing or other accessories reflecting strong opinions. Human resources should also be prepared for an increase in leave requests and employee resignations.

Travel Benefits for Employees Seeking Reproductive Care

In the wake of Dobbs, many businesses in states where access to abortion will be prohibited or highly restricted are considering—or have already implemented—benefit or employee expense plan amendments that would cover travel and lodging for out-of-state abortions. Ultimately, the legal and regulatory future for such plans remains unclear; especially in states where abortion laws are the most restrictive and contain “aiding and abetting” liability.

At a high level, employers seeking to enact such benefit or expense plans may find some comfort in a statement contained in Justice Kavanaugh’s concurrence in Dobbs. Specifically, Justice Kavanaugh wrote:

  • Some of the other abortion related legal questions raised by today’s decision are not especially difficult as a constitutional matter. For example, may a State bar a resident of that State from traveling to another State to obtain an abortion? In my view, the answer is no based on the constitutional right to interstate travel.

Thus, it appears that outright travel bans or similar prohibitive restrictions would face significant legal challenges, and could be declared void.

At this early stage in the post-Roe era, there appear to be several ‘paths’ emerging for employers seeking to provide travel benefits. Each comes with its own set of potential issues and considerations that employers, in conjunction with their counsel and benefit providers, should evaluate carefully. Below is a brief discussion of some of the travel-reimbursement plans employers have begun to implement or consider in the wake of Dobbs:

  1. Travel and lodging benefits under existing group health plans.
    • Assuming the plans are self-funded and subject to ERISA, they must also comply with other applicable rules such as HIPAA and the ACA.
    • Such benefits may not be available under non-ERISA plans in states restricting abortion access.
    • Generally would be limited to individuals enrolled in the employer’s plan.
  2. Travel and lodging benefits under Health Reimbursement Arrangements (HRA’s).
    • An HRA is a type of health savings account offering tax-free reimbursement up to a fixed amount each year.
    • HRA’s are generally subject to ERISA and cannot reimburse above the very minimal IRS limits (Section 213), such as mileage (.18 cents) and lodging ($50/per day).
    • Should be integrated with other coverage or qualify as an “Excepted Benefit HRA” or else it may violate certain ACA rules that prohibit lifetime annual dollar limits for certain benefits.
  3. Employee Assistance Programs (EAP’s).
    • EAP’s are voluntary benefit programs some employers use to allow employees access to certain types of care without accruing co-pays, deductibles, or out of pocket costs. Historically, EAP’s have been predominately used for mental health benefits such as therapy or substance abuse counseling.
    • In certain circumstances, EAP’s are exempt from the ACA. To be an “excepted benefit,” the EAP:
      • Cannot provide significant benefits in the nature of medical care or treatment;
      • Cannot be coordinated with benefits under another group health plan;
      • Cannot charge a premium for participation; and
      • Cannot require cost sharing for offered services.
    • The first of the above requirements (significant benefits of a medical nature) is highly subjective and may create risk for employers because it is difficult to determine whether a benefit is “significant.” Accordingly, it may be difficult to locate a third-party vendor or provider that would administer travel and lodging benefits through an EAP.
  4. Travel and lodging benefits to employees as taxable reimbursements.
    • Taxable reimbursements—up to a certain amount annually—for travel to obtain abortion or other medical care not available in the employee’s place of residence.
    • Some employers are requiring only receipts for lodging, but are not requesting substantiation of the employee’s abortion procedure. Some argue this might insulate an employer from liability in states with statutes prohibiting “aiding or abetting” an abortion, on the grounds that the employer does not know what the employee is using the benefit for. Ultimately, whether that is true remains largely untested and unclear.
    • Likely more costly for the employer, because the benefit is broader in scope. In addition, employers may run the risk that a payroll reimbursement of this kind could qualify as setting up a “new medical plan,” thereby raising compliance and other related issues.

Additionally, employer travel-and-lodging benefits of this type present innumerable other questions and issues. Such questions should include:

  1. Is the employer’s benefit plan subject to ERISA?
    • ERISA is the federal law applicable to qualifying employee benefits plans, including employer-sponsored group health plans. Plans subject to ERISA must also comply with HIPAA, the ACA, and other applicable rules and regulations. So-called self-funded employer plans are subject to ERISA.
    • With some exceptions, ERISA preempts or blocks the implementation of state laws that ”relate to” the ERISA plan.
    • However, ERISA does not:
      • Preempt a state law that regulates insurance companies operating in the state; or
      • Preempt state criminal laws of general applicability.
    • If a plan is self-insured and subject to ERISA it may not be required to comply with state laws related to abortion services based on ERISA preemption.
    • However, the impact of new and untested civil and/or criminal penalties remains unclear.
  2. What procedures does the plan cover?
    • In this environment—especially in states with the most restrictive abortion laws—employers should have a firm understanding of what specific type of abortion procedures the plan covers.
  3. Specific or “general” travel stipends?
    • As noted above, some companies are choosing to provide travel/lodging stipends and benefits to access abortion care in jurisdictions where the procedure is lawful.
    • Some employers are making this travel stipend more general—i.e., not requiring the stipend be used for abortion, or otherwise naming abortion in the benefit program. As an example, a policy that provides a stiped for an employee to “travel to receive medical care that is unavailable within 100 miles of the employee’s place of residence.”
    • Note that out-of-plan reimbursements to employees are likely taxable as wages. Some employees may choose to gross up such stipends to compensate.
  4. What about privacy concerns?
    • Employers should think carefully about how to provide any benefits or stipends while protecting employee privacy, not violating HIPAA, and—where applicable—not running afoul of so-called ‘aiding and abetting’ legislation.
    • To that end, as noted above, some companies are requiring only that employees provide travel receipts—not documentation of the underlying procedure—to qualify for the benefit, reimbursement, or stipend.
    • Of course, without any verification, there is always the potential for abuse—or otherwise using the program for something well beyond its core intent, such as travel, elective plastic surgery, etc. However, some employers may evaluate the risk of abuse as worth the potential lessening of privacy and other concerns.

Protected Activity

Employers must also be aware that certain speech in the workplace—including speech about abortion—may be legally protected. Although the First Amendment generally does not extend to private companies, the National Labor Relations Act (NLRA) prohibits retaliation against employees who discuss the terms and conditions of employment, commonly referred to as “protected concerted activity.” Thus, employees (1) discussing or advocating for an employer to provide benefits to women seeking reproductive and abortion-related healthcare services, (2) advocating for the employer to take a certain public stance on the issue, or (3) protesting the employer’s public position on the issue, may constitute protected activity under the NLRA.

Contacts and Next Steps

Employment law issues will continue to arise and evolve in the coming months following the Dobbs decision. The EEOC, DOL, and HHS may provide further guidance on how Dobbs impacts employment laws such as the Family and Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), and PDA. Employers should consult with legal counsel concerning these developments.

Copyright © 2022, Sheppard Mullin Richter & Hampton LLP.