Law Firm Bonus Strategies: A Guide to Compensating Attorneys

Compensating attorneys effectively is a combination of art and science. A well-structured bonus plan is integral to most law firms’ overall compensation strategy, playing a key role in retaining talent, driving performance, and fostering a collaborative culture. Whether the focus is on individual productivity or firm-wide profitability, bonuses help align attorney performance with the firm’s goals.

This guide provides an overview of various bonus strategies law firms use to compensate attorneys, along with their advantages, disadvantages, and key considerations for selecting the right bonus structure.

Common Bonus Models for Attorneys

1.) Defined Amount Over a Threshold
A set dollar amount per billable hour once an attorney surpasses their annual billable hour target. 
Strengths :

Simple to calculate and highly effective at incentivizing billable work.

Limitations:

Focuses solely on hours billed, ignoring non-billable contributions such as client development, mentoring, or firm-related activities.

2.) Percentage of Salary Based on Pass/Fail Criteria.  / 
A percentage of the attorney’s salary is awarded if they meet certain predefined criteria, such as achieving a billable hour target.
Strengths :

Offers clarity and predictability, ensuring attorneys know exactly what’s required to earn their bonus.

Limitations:

Does not account for performance beyond the set criteria, potentially overlooking high performers who exceed expectations.

3.) Percentage of Fees Over a Threshold:
Attorneys receive a percentage of the fees they collect or bill once they surpass a set production level.
Strengths :

Encourages attorneys to exceed production goals and maximizes their potential bonus.

Limitations:

May cause attorneys to prioritize billing over client service quality, as the focus is heavily on numbers.

4.) Predefined Bonus Pool Split Among Eligible Lawyers
The firm allocates a bonus pool and divides it among attorneys, potentially tiered by seniority.
Strengths :

Encourages team collaboration, as everyone works toward a shared reward.

Limitations:

High performers may feel undervalued if they receive the same bonus as lower performers.

5.) Profitability Bonus
A percentage of profits above a certain threshold (e.g., 15% of individual profitability over $75,000).
Strengths :

Aligns attorney incentives with firm profitability, encouraging both individual performance and a focus on firm health.

Limitations:

Can be difficult to administer and track profitability on an individual basis.

6.) Profit-Sharing Pool
Attorneys receive a portion of the firm’s profits on a regular schedule (monthly, quarterly, or annually), often tiered by seniority.
Strengths :

Encourages attorneys to exceed production goals and maximizes their potential bonus.

Limitations:

May cause attorneys to prioritize billing over client service quality, as the focus is heavily on numbers.

7.) Origination Bonus
Attorneys are rewarded for bringing new business into the firm based on origination credit for clients or cases.
Strengths :

Provides a direct incentive for business development, helping to grow the firm’s client base.

Limitations:

Attorneys may focus too much on client acquisition and not enough on servicing existing clients or mentoring others.

8.) Evaluation with Points-Based Allocation of Bonuses in Tiers
Attorneys earn points based on both quantitative (economic) and qualitative (firm culture, mentoring, client relations) contributions. Bonuses are then awarded in tiers based on point ranges.
Strengths :

Provides a balanced approach that rewards both financial contributions and softer, qualitative metrics.

Limitations:

Complex to administer and requires the firm to have clearly defined evaluation criteria and consistency in tracking.

Best Practices for Structuring Attorney Bonuses

When selecting a bonus model, law firm leaders should carefully consider their firm culture, values, and strategic objectives. Here are some best practices for creating a sustainable and motivating bonus system:

  1. Incorporate Both Economic and Qualitative Performance: While revenue generation is critical, a successful bonus plan should also recognize contributions like mentoring, client satisfaction, and leadership.
  2. Tailor Bonuses to Career Stages: Junior associates, senior associates, and partners may need different incentives to stay motivated. Consider tiered bonus systems or increasing potential bonus payouts as attorneys advance.
  3. Incorporate Regular Feedback: Rather than waiting for the annual bonus review, provide regular feedback to help attorneys stay on track and improve throughout the year.
  4. Use Data-Driven Systems: Consider leveraging technology to streamline bonus calculations. Tools like PerformLaw’s Attorney Relationship Management System (ARMS) can help firms objectively track both billable and qualitative contributions, ensuring fairness and transparency in bonus distribution.

Conclusion

Choosing the right bonus structure for your law firm is not a one-size-fits-all solution. It requires thoughtful consideration of firm goals, attorney performance, and the behaviors you want to incentivize. A well-rounded approach to rewarding economic and qualitative contributions is crucial for long-term success. By combining structured salary increases and performance-driven bonuses, law firms can boost morale, improve retention, and ultimately, drive greater firm profitability.

How to Achieve and Improve Chambers Rankings: A Comprehensive Guide for Law Firms

For law firms and lawyers, a Chambers & Partners ranking is an influential badge of recognition, signifying a firm’s expertise, professionalism and client service. While many firms submit basic information and lackluster, dull matter descriptions, you can distinguish your firm and its lawyers by creating strategic and compelling submissions. Achieving a coveted Chambers ranking requires more than just excellent legal work; it also requires a thoughtful approach. Here’s a guide to crafting a winning Chambers submission.

  • Understand the Criteria: Before you start writing, familiarize yourself with Chambers’ assessment criteria. Understand what they’re looking for in terms of client service, commercial vision, diligence, value for money and depth of expertise. Knowing these criteria will help you tailor your submission to highlight the most relevant aspects of your practice.
  • Be Precise and Relevant: Chambers researchers read countless submissions, so it’s crucial that yours stands out by being clear and concise. Avoid legal jargon and ensure that the information is directly relevant to the category for which you’re applying. Use straightforward language to convey your firm’s strengths and achievements.
  • Highlight Key Matters: Showcase cases that best demonstrate your firm’s expertise and accomplishments. Include a brief description of each matter, outlining the challenge, your approach and the outcome. Ensure client confidentiality by anonymizing sensitive information. Highlighting landmark cases or those involving significant complexities can make your submission more compelling.
  • Demonstrate Consistency: It’s not just about one-off successes. Show that your firm and its lawyers (especially those ones you are putting forth in the submission) consistently deliver results. Highlight any repeat business or long-term clients as evidence of sustained excellence. Consistency in performance and client satisfaction can significantly boost your submission’s strength.
  • Showcase Your Team: Highlight key individuals in your team, detailing their specific contributions, skills, and expertise. Chambers rankings often spotlight individual lawyers within specific practice areas and jurisdictions. Highlighting the strengths of your team members in the introduction sections and matter write-ups can enhance your overall submission. By showcasing the standout qualities and achievements of individual lawyers, you can provide a comprehensive picture of your firm’s capabilities.
  • Proofread and Review: Ensure that your submission is polished and free of errors. Consider having multiple team members review the document for clarity, accuracy and impact. A well-reviewed submission is likely to be more persuasive and professional.
  • Follow Submission Guidelines: Adhere strictly to guidelines and parameters provided by Chambers. This includes word limits, format specifications, number of matters submitted, firm demographic information and of course, deadlines.
  • Be Visible in Your Industry: Feedback from peers is a significant part of the Chambers research process. Staying visible in your industry is crucial. Attend and speak at industry conferences, publish articles and thought leadership pieces, and participate in relevant legal associations and groups. Engaging in these activities not only enhances your visibility but also positions you as an expert in your field, making it more likely that your peers will provide positive feedback during the Chambers research process.
  • Group Matters Around Common Themes: Highlighting your expertise in specific legal areas or developments can strengthen your submission. Group similar cases or matters under common themes or practices, such as recent legal developments or industry trends. This approach showcases your depth of knowledge and specialized skills, helping researchers and clients see the broader impact of your work.

Key Tips for Strong Matter Descriptions

  • Client Anonymity: Ensure you maintain the confidentiality of your clients unless you have explicit permission to name them. Use generic terms like “a major pharmaceutical company” or “a leading financial institution.”
  • Start with Key Points: Begin with a crisp, one-line summary that captures the essence of the matter to grab attention immediately.
  • Detail the Complexity or Significance: Highlight why the matter was particularly challenging or important, such as involving multiple jurisdictions or being precedent-setting.
  • Role of the Firm: Clearly describe the role your firm played, whether as lead counsel or in a supporting role.
  • Legal Expertise: Specify the areas of law involved, showcasing the breadth and depth of your firm’s expertise.
  • Outcome: Briefly describe the outcome, especially if it was favorable for your client, but avoid exaggerations.
  • Value Add: Highlight any additional value your firm provided, such as achieving a swift resolution or reducing potential costs.
  • Avoid Jargon: While the description should display expertise, avoid overly technical language that might alienate readers unfamiliar with specific legal terms.
  • Proofread: Ensure there are no grammatical or factual errors, and that the description is polished and professional.
  • Feedback: Consider getting feedback from colleagues or other professionals to ensure clarity and effectiveness before submitting the description.

How to Get a Lawyer Ranked in Chambers

To get a lawyer ranked in Chambers, focus on the following steps:

  1. Highlight Individual Achievements: In your submission, emphasize the individual lawyer’s key cases, leadership roles and contributions to significant matters. Detail their specific impact and success in these cases.
  2. Client Testimonials: Secure and include strong client testimonials that speak to the lawyer’s expertise, client service and successful outcomes.
  3. Peer Recognition: Ensure the lawyer is visible within the industry through speaking engagements, publications and participation in professional associations. Peer recognition can significantly influence Chambers’ evaluation.
  4. Detailed and Relevant Information: Provide comprehensive and relevant information in the submission, avoiding generic descriptions. Specifics about the lawyer’s contributions and successes will make the submission stand out.
  5. Peer Relationships: Building and maintaining strong peer relationships is essential. Make time for networking, assisting colleagues, and being active in legal communities. Helping others and being a visible, active participant in your industry can lead to positive peer reviews, which are crucial for Chambers rankings.

How Lawyers Can Move Up in Chambers Rankings

To help a lawyer move up in Chambers rankings, consider these strategies:

  1. Consistent Excellence: Demonstrate sustained excellence by highlighting repeat business and long-term client relationships. Show how the lawyer consistently delivers high-quality results.
  2. Professional Development: Encourage continuous professional development and involvement in high-profile matters or industry-leading initiatives. This demonstrates ongoing growth and expertise.
  3. Enhanced Visibility: Increase the lawyer’s visibility through strategic marketing, including thought leadership articles, media appearances and active participation in relevant industry events.
  4. Feedback and Improvement: Utilize feedback from previous Chambers submissions and the Chambers Confidential report to identify areas for improvement. Make necessary adjustments to strengthen future submissions.

Key Takeaways for Crafting a Winning Chambers Submission

A Chambers submission is more than just any other award submission; it’s an opportunity to showcase your firm’s achievements, expertise and dedication to client service. Be concise, relevant and honest in your approach. Tailor your submission to reflect both the category(ies) to which you’re applying and the unique strengths of your firm and its lawyers. Attention to detail, from adhering to guidelines to proofreading, can make the difference between a good submission and a winning one.

Crafting a standout Chambers submission requires effort, but the potential rewards, in terms of recognition and business development, are well worth the investment.

For more on Chambers submission best practices, take a look at these articles:

For more news on Chambers Ranking Best Practices, visit the NLR Law Office Management section.

10 Resolutions to Elevate Your Personal Brand in the New Year

Personal branding has become more than just a buzzword – it’s a crucial element of career success. As we embark on a new year, it’s essential to recognize the power of a well-crafted personal brand. It’s not just about making a mark in your industry; it’s about creating a distinct identity that resonates with your professional ethos and vision.

Every individual inherently has a personal brand. It’s an amalgamation of your skills, experiences and the impressions you leave on others.

Even without conscious effort, your interactions, online presence and professional accomplishments contribute to how you are perceived. This unintentional brand can impact your career and opportunities positively or negatively. Actively shaping your personal brand allows you to control this narrative, ensuring it aligns with your career goals and reflects your professional identity. Neglecting it means letting others define it for you, which might not always match your aspirations or values.

Building your personal brand can feel overwhelming, but with a strategic and thoughtful approach, this process can unlock doors to new opportunities and personal growth, allowing you to shape and share your unique professional story with the world.

This blog post will guide you through easy and effective strategies to build and enhance your personal brand, which will help set you apart from your peers and competitors.

  1. Define Your Unique Brand: Delve deep to articulate your core strengths, values and the distinctive qualities that set you apart in your industry. Reflect on your career highlights and how they shape your professional narrative. For what do you want to be known? Be clear.
  2. Ensure Consistent Messaging: Audit all your professional platforms to ensure they convey a unified story about who you are and what you offer. This includes everything from your LinkedIn bio to your website/website bio.
  3. Be Active on Social Media: Plan a content calendar to regularly share insights, engage with industry conversations and connect with thought leaders. Being active also means responding to comments and messages to foster connections.
  4. Create and Share Valuable Content: Consider starting a blog or a podcast, or contribute as a guest writer to industry publications. Share your experiences, case studies or lessons learned to provide real value to your audience.
  5. Network Actively: Attend industry events, webinars and workshops. Be proactive in reaching out for informational interviews or mentorship opportunities.
  6. Commit to Personal Development: Identify key areas for growth and seek out resources like online courses, books, podcasts or coaching. Staying updated with the latest industry trends is also crucial.
  7. Seek and Adapt to Feedback: Regularly seek feedback from peers, mentors or through professional assessments. Use this feedback to refine your brand and address any gaps.
  8. Maintain Professional Visual Branding: Invest in a professional headshot and ensure your visual branding (like color scheme, fonts, etc.) is professional and consistent across all platforms.
  9. Get Involved in Your Community: Align with causes or organizations that resonate with your personal values. Share these experiences on your platforms to show your commitment beyond work.
  10. Monitor Your Online Presence: Use free tools like Google Alerts to keep track of your digital footprint. Ensure that your online presence is positive and accurately reflects your personal brand.

To begin crafting your personal brand, start by reflecting on your unique skills, experiences and what differentiates you professionally. Set aside time each week to engage with your network, create content that showcases your expertise, and participate in relevant online discussions. Regularly update your professional profiles and assess the alignment of your online presence with your brand. This proactive and consistent effort will gradually build a strong, authentic personal brand.

These resolutions are more than just annual goals; they are commitments to ongoing personal and professional growth. Remember that visibility is each of our responsibility. By following these steps, you can significantly enhance your personal brand, making it a powerful tool in your career advancement.

Lawyer Bot Short-Circuited by Class Action Alleging Unauthorized Practice of Law

Many of us are wondering how long it will take for ChatGPT, the revolutionary chatbot by OpenAI, to take our jobs. The answer: perhaps, not as soon as we fear!

On March 3, 2023, Chicago law firm Edelson P.C. filed a complaint against DoNotPay, self-described as “the world’s first robot lawyer.” Edelson may have short-circuited the automated barrister’s circuits by filing a lawsuit alleging the unauthorized practice of law.

DoNotPay is marketed as an AI program intended to assist users in need of legal services, but who do not wish to hire a lawyer. The organization was founded in 2015 to assist users in disputing parking tickets. Since then, DoNotPay’s services have expanded significantly. The company’s website offers to help users fight corporations, overcome bureaucratic obstacles, locate cash and “sue anyone.”

In spite of those lofty promises, Edelson’s complaint counters by pointing out certain deficiencies, stating, “[u]nfortunately for its customers, DoNotPay is not actually a robot, a lawyer, or a law firm. DoNotPay does not have a law degree, is not barred in any jurisdiction and is not supervised by any lawyer.”

The suit was brought by plaintiff Jonathan Faridian, who claims to have used DoNotPay for legal drafting projects, demand letters, one small claims court filing and drafting an employment discrimination complaint. Faridian’s complaint explains he was under the impression that he was purchasing legal documents from an attorney, only to later discover that the “substandard” outcomes generated did not comport with his expectations.

When asked for comment, DoNotPay’s representative denied Faridian’s allegations, explaining the organization intends to defend itself “vigorously.”

© 2023 Wilson Elser

March 2023 Legal Industry News Highlights: Law Firm Hiring News, Industry Awards and Recognition, and the Latest Updates in Diversity and Inclusion

Welcome back to another edition of the National Law Review’s legal industry news roundup. We hope you are remaining safe, happy, and healthy! Please read on below for the latest in law firm hiring and expansion news, key industry awards and recognition, and a spotlight on important diversity, equity, and inclusion updates!

Law Firm Hiring and Expansion

Joanna Horsnail has been named managing partner of Mayer Brown’s Chicago office, effective February 28, 2023. Her appointment marks the fourth consecutive female leader for the firm’s largest office. Ms. Horsnail’s practice has primarily focused on advising clients on key transformational deals, primarily in the City of Chicago and State of Illinois. Most notably, she counseled on the deal securing the James R. Thompson Center as the corporate headquarters for Google, and has also previously worked with the Illinois Sports Facilities Authority, the Metropolitan Pier & Exposition Authority, the Chicago Symphony Orchestra and other public and not-for-profit organizations.

“Joanna’s well-earned reputation for professional excellence, coupled with her outstanding profile in the Chicago community make her an exceptional choice to lead the office,” said firm chair Jon Van Gorp. “Her natural charisma, approachability as a mentor to many and vision for the office will make her an inspirational and hugely successful leader. I look forward to working closely with her to achieve the growth and development objectives that the firm has for this office, which is where I started my career at Mayer Brown.”

“I’m delighted to be named office managing partner,” said Ms. Horsnail. “I have such tremendous enthusiasm for both Mayer Brown and this office and look forward to guiding the office as we continue our success in Chicago.”

Morten Lund has joined Foley & Lardner’s San Diego office as an of counsel in the Finance Practice Group. Mr. Lund has more than 25 years of experience advising developers, lenders, investors, and other project participants and has extensive experience in the energy sector.

Mr. Lund’s practice has primarily focused on solar energy and energy storage projects. His range of project experience also includes wind energy projects, combustion generator projects, nuclear energy facilities, hydroelectric facilities, cogeneration facilities, chemical facilities, forestry/paper facilities, large aircraft, and shipping fleets. He earned his JD from Yale University.

Eversheds Sutherland has added Megan K. Hall to their Tax Practice Group as a partner. Ms. Hall, located in the firm’s Washington D.C. office, further strengthens the firm’s international tax capabilities, focusing chiefly on transactional matters, cross-border employment and global mobility. She has previously worked with clients including multinational corporations on international tax matters, including the tax aspects of acquisitions, mergers, internal restructurings and business formations.

“I’m very excited to welcome Megan to the team and know she will add depth to our international tax practice,” said Robert S. Chase, US Tax Practice Group Leader. “Megan’s familiarity with cross-border operational structures and the tax considerations relevant to operating a multinational business enhances the firm’s ability to support clients in an area of increased focus for international tax authorities. The firm’s global footprint will provide a unique opportunity to enhance support to her international network.”

Jeremiah Kelly and Justin Coen have joined Venable LLP as partners in the firm’s FDA Group. Mr. Kelly’s practice concentrates on the FDA’s complex regulatory framework, helping clients with product development, application, and compliance for drugs, biologics, medical devices, and combination products. Mr. Coen’s practice focuses on guiding companies through FDA regulations related to drug, biologic, and device development, advising them on every stage of product development and commercialization.

Claudia A. Lewis, a co-chair of the firm’s FDA Group, said, “Venable has established itself among the premier practices in the FDA regulatory space and is regularly called upon to handle a myriad of issues involving the development and marketing of products regulated by the FDA. With the addition of Jeremiah and Justin, our services now include robust legal capabilities for companies navigating the FDA regulatory framework to commercialize drugs, biologics, devices, and combination products, among other product categories.”

Legal Industry Awards and Recognition

Janet Wagner, principal in the Banking practice at Chuhak & Tecson, P.C., has been accepted as a fellow of the respected American College of Mortgage Attorneys (ACMA) for 2023. Fellows of ACMA, which is composed of lawyers in North America who are authorities in mortgage law, seeks to give back to their profession, improving and reforming laws and procedures affecting real estate secured transactions and raising the level of performance of lawyers practicing in this area. Candidates are recommended each year and are selected after thorough review of their qualifications and achievements.

Ms. Wagner primarily focuses her practice on banking and commercial financing transactions, providing key counsel to commercial banks, credit unions, institutional lenders, insurance companies and other lenders. Previously, she has represented lenders involving a variety of classes of real estate in states across the country on acquisitions, refinancing and construction loans.

The Brain Injury Association of America (BIAA) has named Lawrence J. Buckfire to their prestigious Preferred Attorneys Program. The objective of the Preferred Attorneys Program is to offer a credible, diverse listing of outstanding attorneys to be used as a resource for both referring attorneys and individuals with brain injury, their family members/caregivers, and others seeking legal counsel. BIAA Preferred Attorneys are selected for their demonstrated legal credentials and their knowledge of the physical, cognitive, emotional, and financial tolls a brain injury inflicts.

Mr. Buckfire has consistently demonstrated skill and ability in representing those affected by a brain injury. He is the lead trial attorney and managing partner at Buckfire & Buckfire, P.C. His practice focuses primarily on child lead paint poisoning, wrongful death, nursing home neglect, medical malpractice, and other serious injury cases.

Adam Beaudoin of Ward and Smith has been chosen to serve as President-Elect of the Board of Directors for the Community Associations Institute of North Carolina (CAI-NC). The Community Associations Institute seeks to promote and strengthen community associations, focusing on education and resources for homeowners, volunteers, and professional managers.

Mr. Beaudoin brings extensive experience to his new role with CAI-NC, having previously practiced community associations law for nearly two decades. He is the Co-Chair of Ward and Smith‘s Community Associations Practice Group, and he has been a CAI-NC member since 2006. He has presented at several local and national CAI events, served on the Legislative Action Committee, and was a board member prior to his election.

Diversity, Equity, and Inclusion News

Katten Health Care Partner and Deputy General Counsel Kenya Woodruff has been profiled as a Leader in Diversity by the Dallas Business Journal. Ms. Woodruff is the National Chair of Katten’s Diversity Committee Women’s Leadership Forum, where she leads efforts to provide women attorneys with the professional tools and support to take their rightful place as leaders in law.

“I’m particularly proud of the professional development programming we have offered through the Women’s Leadership Forum to help empower our female attorneys at the firm and give them the skills needed to advance in their careers,” says Ms. Woodruff.

Woodruff’s practice centers around the healthcare industry, where she uses her legal, business, and regulatory expertise to support successful clinical operations and corporate transactions. She has previously worked as Deputy General Counsel for Parkland Health & Hospital System and Privacy Officer for a publicly traded radiology company.

Three Barnes and Thornburg attorneys will represent the firm in two 2023 Leadership Council for Legal Diversity ProgramsAdetayo Osuntogun, Partner at the D.C. office, will join LCLD’s Fellows Program, a year-long training program focused on relationship-building and leadership skill development. Indianapolis Associate Alyssa Hughes and Los Angeles Associate Mihran Yezbekyan are joining the LCLD Pathfinders Program, which gives early career professionals the chance to develop tools related to leadership, career development, and professional networking.

Mr. Osuntogun is an international trade law expert focused on helping businesses handle global commerce matters related to trade policy, customs, imports, economic sanctions, export laws, and more. He is active with Alpha Phi Alpha, the Diverse Associates Network, and the National Bar Association. Ms. Hughes, who The Best Lawyers in America listed as one of 2023’s “Ones to Watch,” works in the Litigation Department on matters related to government and internal investigations, corporate criminal defense, and general commercial disputes. Mr. Yezbekyan also works in the Litigation Department, handling product liability, mass torts, and consumer class actions. Outside of the office, he volunteers with the Los Angeles County Bar Association Judicial Elections Evaluation Committee.

“LCLD has been a long-standing partner of Barnes & Thornburg. Their pathfinder and fellow programs align with our mission to position all of our talent to win,” said Dawn R. Rosemond, firm diversity partner. “We know that these programs will only further elevate Adetayo, Alyssa and Mihran’s professional practice and presence.”

Stanley Blackmon, Partner at Bradley Arant Boult Cummings’ Birmingham office, has also been selected to be a 2023 Leadership Council on Legal Diversity Fellow. The program will provide alumni networks, mentoring, accountability partners, leadership lunches, and class meetings to advance his legal diversity efforts and help others to do the same. LCLD Fellows are selected for their leadership, engagement, and commitment to diversity and inclusion, which Mr. Blackmon demonstrates through his active pro bono practice and involvement with the Birmingham Bar Association as President of the Young Lawyers’ Section, the Magic City Bar Association as an Executive Committee Member, the Alabama Standing Committee on Rules of Appellate Procedure, and the American Bar Association.

“We congratulate Stanley on his selection as an LCLD Fellow,” said Bradley Director of Inclusion and Diversity George D. Medlock, Jr. “Since Bradley joined LCLD in 2020, we have been proud to participate in and support the LCLD’s programs, which help prepare future generations of diverse talent for the highest positions of legal leadership.”

Copyright ©2023 National Law Forum, LLC

8 Best Lawyer Forums Online

Though unorthodox for a traditional profession like the law, remote work is becoming a more realistic option for lawyers all over the country. With the help of tools like legal practice management software and options to practice law in multiple states, lawyers everywhere are tackling the challenges of remote work.

But one obstacle that remains is networking. Remote lawyers need to put extra work into maintaining professional connections and building an online presence, both of which are made easier with online forums designed specifically for legal professionals.

What Is an Online Forum?

An online forum is an internet space dedicated to conversation using questions, answers, responses, and prompts. Typically, online forums are asynchronous — users post a question, then other users respond at their leisure.

Posts in forums are archived and arranged into categories like post date, popularity, and more. Discussions can last for hours, days, months, or possibly years, as long as users continue to contribute.

Why Should Lawyers Use Online Forums?

After the rapid shift to remote work during the COVID-19 pandemic, plenty of industries saw the value of allowing employees to work from home – including law firms. More and more lawyers are working remotely, but that could come at the cost of networking.

Networking doesn’t have to mean interactions that take place over coffee, lunch, cocktails, golf excursions, or big events. In the strictest sense, networking is any meeting between people, whether in a group or one on one, online or in-person, which can be done using online forums.

Online forums dedicated to lawyers and the legal industry are an effective way to facilitate networking opportunities when in-person meetings aren’t an option. Getting involved in online forums help lawyers discuss industry topics with experts and thought leaders, stay current on trends and technology, and learn valuable tips from other lawyers.

Top 8 Online Forums for Lawyers

Curious about online forums? Here are the best options for lawyers and legal professionals to engage with other legal professionals and build a network as a remote attorney:

1. Quora

Quora is a broad forum that covers a variety of topics in question-and-answer formats, including the legal industry. You can easily search for questions or topics that are trending in the legal industry and contribute expert answers to boost your credibility. The more answers you provide, and the more other users engage with you, the closer you can get to becoming a thought leader in the space.

2. Bar Association Forums

Bar association forums are always a benefit to lawyers, remote or otherwise. There are plenty of options to choose from, including local bar associations or forums dedicated to your practice area. Best of all, you’ll be engaging with other knowledgeable legal professionals to connect and network.

3. Social Media Groups

Social media channels like Facebook and LinkedIn have dedicated groups that bring together users based on interests or industries, such as the legal industry. These two platforms are among the best for getting into a private or public group and enhancing your online presence. Keep in mind that you are representing yourself as a lawyer in these groups, so use a professional social media account, not your personal one.

The Thomson Reuters Legal Community is an exclusive option for customers of Thomson Reuters that brings together a virtual community of lawyers to network and engage in group settings. You can connect with lawyers from all different practice areas, both locally and nationally, and gain valuable insights from industry experts.

5. The Lawyerist Community

The Lawyerist is an online community dedicated to small firm lawyers to provide coaching, podcasts, books, guides, and other insights. The company has its own online lawyer forum – The Lawyerist Community – on Facebook to discuss law firm best practices, trends, and ideas.

6. Reddit

Reddit has some of the best online forums for a range of different topics, from broad subjects like sports to niche communities dedicated to obscure literature. There’s also a legal forum, r/LawFirm, that’s an informal community for lawyers to discuss running a law firm and the legal industry as a whole. There’s also a lawyer subreddit that you can join if you’re licensed.

7. Slack

Slack is a top-rated collaboration platform that offers individual channels for groups of users. There are several communities dedicated to the law, including LawyerSmack, which is comprised of private attorneys.

8. Law School Alumni Forums

Some law schools have online forums for alumni to stay connected with faculty and colleagues. While not every school offers an online forum for networking, if yours does, you can build vital industry contacts and further your practice. You’ll also get updates on news, trends, and in-person network events by participating in the forum.

Outlook on Online Forums

Remote and hybrid working models are the “new normal,” even for lawyers. Now that law firms and lawyers have seen the benefits in productivity, work-life balance, and enhanced communication afforded by remote work, there’s no going back.

Still, lawyer networking is essential for lawyers to grow their practice, no matter if it’s online or in-person. Along with joining forums to engage in discussions with other industry professionals, you can enhance your remote work with law practice management software. The right law firm software empowers lawyers to manage their practice from anywhere.

Start Networking Remotely

Networking is a big part of successful client acquisition for lawyers. Though it takes a little more work to keep up with networking as a lawyer working remotely, online lawyer forums can keep you connected to other industry professionals. And because you can engage with lawyers all over the country, you can find even more opportunities online than in person at networking events.

© Copyright 2023 PracticePanther

Available Options for Completing Form I-9 in Remote-Work Scenarios

The American Immigration Lawyer’s Association (AILA), through its Verification and Documentation Liaison Committee (“Verification Committee”) recently issued an FAQ compiling updated information related to employment verification (I-9) compliance requirements during the COVID-19 Pandemic.

The FAQ addresses the viable options for completing the Form I-9 in remote-work scenarios and the most current developments in each type of process. Below are the main takeaways:

Process 1: In-person New Employee and HR/Admin Document Review: HR/Admin timely reviews the employee’s identity and employment authorization documents in the employee’s physical presence. Where employers have fully returned to in-office operations, or where they are no longer maintaining COVID-19 precautions, they must complete an in-person review of Form I-9.

Process 2: “Remote Hire” In-Person New Employee & Employer Authorized Representative Document Review: This is the so-called “Remote Hire” process, typically used in situations of on-boarding and new remote employee. Note that this is still an in-person document review conducted by a third party designated by the employer who acts as the agent. Also note that this process is not restricted only to employees based at remote locations but can also be used in any situation. Since the employer bears the liability for the agent’s errors it is best practice for the employer to train and/or provide instructions to the agents as well as perform a detailed review upon receipt of the completed Form I-9.

Process 3: Limited Temporary Option: HR/Adm’s Electronic Document Review: The virtual review option was first implemented March 20, 2020, and has been extended multiple times. The current extension expires July 31, 2023. With this process, HR/Adm timely reviews the employee’s identity and employment authorization documents electronically, not in the employee’s physical presence, but via video link, fax, email, etc.

Who can benefit from this option? The U.S. Immigration and Custom Enforcement (ICE) confirmed to the Verification Committee the general rule in applying this option:

  • Before April 1, 2021, the temporary I-9 option was available if a business was operating 100% remotely as a result of the pandemic. If it was not, the in-person verification for Form I-9 was required. ICE acknowledged, however, that the Agency will handle audits and future enforcement on a case-by-case basis. Employers do not need to have 100% of their workforce working remotely to take advantage of the virtual option if the employer has a record supporting that the virtual review option was necessitated by the pandemic.
  • On or after April 1, 2021, the temporary virtual document review option is available, but only where the remote employment is a result of COVID-19-related precautions. Employers hiring “true remote” employees should conduct in-person reviews as they would have prior to the COVID-19 virtual review option being offered.

While virtual review provides a practical alternative to the in-person review, there are additional requirements in this process in order to maintain compliance:

  • Create and retain a written document that captures the remote onboarding and telework policy in place when this option is used for any Form I-9 created under this process;
  • Retain copies of the documents presented, as per the original guidance issued by ICE Note that security of sensitive personal information must be maintained, and the company should work with its information-security team regarding the transmission and/or capture of personal information in these situations;
  • Add “COVID-19” in the Additional Information field/box on Section 2 of the Form I-9;
  • Tell the employee that no later than three business days of cessation of this temporary electronic document review option or once the employee commences non-remote employment on a regular, consistent, or predictable basis (whichever is earlier), an in-person meeting and physical inspection of the document(s) will occur;
  • Within three business days of such a date, coordinate the in-person meeting and physical inspection of the document(s); and,
  • Add “documents physically examined,” date and initial in Section 2 Additional Information field/box, or to Section 3 of Form I-9, as appropriate.

Importantly, the virtual review process requires the employer to “perfect” the Form I-9 with an in-person meeting at a future date.

The Department of Homeland Security (DHS) is currently reviewing the regulatory framework for document review in considering making virtual review a permanent option for I-9 compliance. DHS published a Notice of Proposed Rulemaking in the Federal Register and, since November 2022, has been reviewing comments. Simultaneously, ICE has ramped up audits and investigations as the pandemic has waned. Therefore, employers should maintain a fluid line of communication with their attorneys and employees to avoid any compliance issues.

©2023 Greenberg Traurig, LLP. All rights reserved.

10 Tips When Hiring a Federal Appeals Lawyer

When hiring a federal appeals attorney, it is important not to take your decision lightly. There is a good chance that the outcome of your appeal will have a major impact on your life or business—whether positive or negative—and your choice of counsel will have a major impact on your chances of success.

For many people, their first instinct is to engage their trial counsel for their appeal. On its face, this makes sense. Trial counsel is already intimately familiar with the facts of your case, and trial counsel is—or should be—well aware of the grounds that are available for seeking relief at the appellate level.

But, while trial counsel can be a good option in some cases, defendants should not engage their trial counsel by default. There are many circumstances in which hiring trial counsel to continue forward with an appeal will not be the right choice. There are several factors to consider, and considering all of these factors is essential for making an informed decision.

“Some lawyers are better equipped to handle federal criminal appeals than others. This is not a slight toward lawyers who don’t handle federal appeals, but rather simply an acknowledgment that federal appeals are a unique practice area just like white collar criminal defense, healthcare fraud defense, or defending against allegations of serious violent crimes. If you need to appeal the outcome of your federal criminal case, it is imperative that you choose a lawyer who has been there many times before.” – Dr. Nick Oberheiden, Founding Attorney of Oberheiden P.C.

Due to the unique challenges involved in successfully pursuing a federal criminal appeal, the considerations involved in choosing a federal appeals attorney are not the same as those involved in choosing trial counsel for a federal criminal case. This is important to keep in mind, and understanding the unique nature of the federal appeals process will help you make an informed choice about your appellate representation.

How To Choose Appellate Counsel for a Federal Criminal Appeal

So, how should you choose appellate counsel for your federal criminal appeal? Here are 10 tips to keep in mind when hiring a federal appeals lawyer:

1. Understand that an Appeal is Not a Re-Trial

The first thing to understand that will help you make an informed decision about your choice of appellate counsel is that an appeal is not a re-trial. As a result, being an effective trial lawyer does not necessarily translate to having the skills needed to provide effective representation at the appellate level. The federal trial and appellate processes are very different, and many of the arguments and strategies that work at trial are completely irrelevant to the process of seeking relief from an unjust conviction or sentence on appeal.

For example, while providing effective trial representation requires the ability to effectively question witnesses and argue the facts to the jury, providing effective appellate representation requires persuasive writing abilities and the ability to effectively argue the law to a panel of judges who aren’t necessarily focused on the defendant’s guilt or innocence. On appeal, the focus is instead on determining whether errors at the trial level entitle the defendant to the opportunity to pursue a different outcome.

2. Focus on Hiring a Lawyer with Significant Federal Appellate Experience

Given the unique nature of the federal appeals process, relevant experience is undoubtedly the most important factor to consider when choosing a lawyer to represent you. This means experience handling federal criminal appeals in cases similar to yours—and ideally experience handling federal criminal appeals in the U.S. Circuit Court of Appeals that will hear your case. Although, this latter consideration is definitely the less important of the two. While each U.S. Circuit Court of Appeals has its own rules of practice, it is far easier to adapt to a new set of procedural rules than it is to get up to speed on the substantive issues involved in a complex federal case.

3. Carefully Consider Whether Your Trial Counsel is Your Best Option

As we touched on above, continuing to work with your trial counsel for your federal criminal appeal may or may not be your best option. As a baseline, you should only consider engaging your trial counsel for your appeal if he or she has extensive experience in federal appellate practice. While some lawyers handle trials and appeals, many devote their careers to handling one type of case or the other.

Even if your trial counsel also has significant experience, you will still want to weigh other factors as well. How effective was your trial representation? Do you have any concerns about whether your trial counsel was able to effectively preserve your grounds for appeal? Does your attorney have other major trials in the pipeline? These are all important questions to consider when making your decision.

4. Expand Your Search

When choosing a federal appeals attorney, you don’t necessarily have to stay local—and, in fact, staying local might not be your best option either. There are federal appeals lawyers who handle cases throughout the country; and, depending on where you live or your business is located, your local options may be fairly limited. You can (and should) expand your search to law firms with a nationwide presence, and you can (and should) choose a lawyer based on relevant experience rather than geographic proximity.

5. Schedule a Consultation to Discuss Your Appeal

Whether you are considering your trial counsel or you are looking elsewhere for your appellate representation, you should schedule a consultation to discuss your appeal. Before you invest in an appeal, you need to make sure it makes sense to move forward. Scheduling a consultation also gives you the opportunity to speak with a lawyer one-on-one and decide whether he or she seems like the right choice to handle your case on appeal.

6. Do Some Legwork Yourself

In addition to scheduling a consultation, you can also do some legwork to help you make an informed decision—and to help yourself and your lawyer begin preparing for your appeal. When it comes to choosing a federal appeals lawyer, this includes taking steps such as:

  • Visiting the lawyer’s website and reading about his or her experience

  • Reading client reviews and testimonials online

  • Preparing a list of questions to ask during your initial consultation

When it comes to preparing for your appeal, some of the steps you can take to prepare in advance of your initial appellate consultation include:

  • Taking notes about any potential grounds for appeal that you have discussed with your trial counsel

  • Taking notes about any other specific issues during your trial that you think may have led to an unjust result

  • Familiarizing yourself with the unique aspects of federal appellate practice

7. Do Not Fall for a Sales Pitch

While a lawyer should only be willing to take your case if he or she is capable of representing you effectively, you still need to be careful to avoid falling for a sales pitch. Unfortunately, if you schedule a consultation with a lawyer who isn’t the right choice to handle your case, there is a possibility that he or she may still try to convince you otherwise. While these instances are relatively rare, they do happen. If you feel like a lawyer is pressuring you to move forward with an engagement, this is most likely a sign that you should choose someone else for your federal criminal appeal.

8. Schedule Another Consultation if Necessary

This brings us to another important point: If you schedule a consultation with a lawyer and you are not confident in the lawyer’s ability to handle your appeal effectively for any reason, you should not hesitate to schedule another consultation at another firm.

9. Make Your Decision Carefully

If it is not already abundantly clear, when hiring a federal appeals attorney, you need to make your decision carefully. You should not rush, and you should not make your decision out of convenience or the desire to avoid putting in effort. Your effort to find the right lawyer for your appeal will be well worth it. Whether you are facing a conviction as an individual or your business has been convicted of corporate fraud or any other crime, you need to have unwavering confidence in your counsel’s ability to provide strategic and efficient appellate representation. The more effort you put into choosing the right lawyer, the more confidence you will have in your decision.

10. Make Your Decision Promptly

Finally, while it is important not to rush your decision, you still need to make your decision promptly. Under the Federal Rules of Appellate Procedure, you only have 14 days to file a Notice of Appeal. While a Notice of Appeal is a simple form filing, you cannot afford to risk any mistakes or delays. So, whether it has been hours or days since the trial court’s decision, finding the right federal appeals lawyer to represent you (or your business) needs to be your top priority.

Oberheiden P.C. © 2023

January 2023 Legal Industry News Highlights: Law Firm Expansion and Promotions, Industry Awards and Achievements, and a Spotlight on Diversity, Equity, and Inclusion in the Legal Field

Welcome back to another edition of the National Law Review’s legal industry news roundup, including a focus on law firm hirings and expansions, noteworthy awards and accomplishments in the field, and the latest in DEI efforts across the industry. We hope you are remaining safe and healthy, and that your new year has started off strong!

Additionally, be sure to check out the latest episode of our legal news podcast, Legal News Reach. New episodes will be forthcoming in 2023!

Law Firm Hiring and Expansion

Jennifer L. Budner has joined Goldberg Segalla’s White Plains office as a member of the Civil Litigation and Trial group. Ms. Budner focuses her practice primarily on litigation and trial counseling, having specialized in personal injury and wrongful death litigation for more than 20 years. She has a great deal of experience handling high exposure labor and construction law matters, and has represented many different types of clients, including property owners and contractors, product manufacturers, and a variety of business owners in various employment and product liability law actions.

Mayer Brown has added partner Richard Snyder to the firm’s Antitrust & Competition practice in Washington DC. Mr. Snyder focuses his practice on civil antitrust litigation, having previously represented clients in both federal and state court, and having appeared regularly before the US Department of Justice and the Federal Trade Commission. He has a great deal of experience in many areas, including merger reviews, criminal antitrust investigations, and a variety of conduct matters.

“With increasing enforcement activity, Rich’s experience in successfully handling antitrust matters in strategic transactions and before various government agencies will be invaluable to our clients,” said William Stallings, co-leader of Mayer Brown’s global Antitrust & Competition practice.

Bergeson & Campbell, P.C. and The Acta Group recently announced a number of noteworthy promotions within the firm:

  • Catherine M. Croke, DBA, has been named Director of Product Stewardship and Regulatory Affairs. Dr. Croke has decades of experience executing product stewardship and regulatory compliance programs in the field of chemicals and materials, formerly serving as Senior Advocacy and Compliance Manager with Evonik Corporation, Regulatory Affairs Manager for Arkema, and a Physical Science Technician with the U.S. Department of Agriculture.
  • Irene M. O’Hara has joined B&C® Consortia Management, L.L.C. (BCCM) as a Consortium Manager. Ms. O’Hara’s specialty is in association management, including stakeholder engagement, project management, and external affairs. She has previously worked with the Association of Corporate Counsel, the Institute of Scrap Recycling Industries, and the Smithsonian Institution’s Hirshhorn Museum.
  • Karin F. Baron, MSPH, has been named the Director of Hazard Communication and International Registration Strategy. With around 20 years’ experience in developing, implementing, and managing complex chemical regulatory compliance strategies, Ms. Baron primarily focuses her practice on navigating the Globally Harmonized System of Classification and Labeling of Chemicals, including classification, labeling, and authoring of compliant safety data sheets, as well as hazard and risk assessment.

Lynn L. Bergeson, Managing Partner of B&C, President of Acta, and President of BCCM, said of the hirings, “Our growing team of experts reflects the diversity of our substantive skill set, our expanding client base, and our commitment to providing our clients with the best and most efficient team of legal, regulatory, and scientific experts available.”

OLIVARES has named two new partners to the firm: Rommy Morales and Jaime Rodríguez. Ms. Morales, who co-chairs the Patent Group at the firm, focuses her practice on prosecution and enforcement of pharmaceutical patents in Mexico. In addition to her wide array of experience counsel to national and international clients regarding the protection and enforcement of their intellectual property rights, she has also repeatedly obtained patents for complex biotechnological inventions that have not been protected elsewhere.

Mr. Rodriguez’s practice is focused on intellectual property and copyright law matters, with extensive experience in trademarks, unfair competition, and domain name dispute resolution. Since 2007, he has achieved a number of impressive litigation results at OLIVARES, and has continued to serve as a professor at various educational institutions in Mexico, as well as publishing a great many articles related to his practice and to intellectual property law in general.

“Our new partners exemplify the success that comes from dedication to the firm’s mission. We are all excited about what the future looks like with these new leaders with us,” said Sergio Olivares, managing partner of the firm.

Legal Industry Awards, Events, and Recognitions

Ward and Smith has been named a 2023 Data Privacy Week champion by the National Cybersecurity Alliance. A non-profit organization that seeks to create a more secure and interconnected world, the National Cybersecurity Alliance works to develop notable partnerships between governments and companies to foster the greater digital good. With the reception of this title, Ward and Smith has committed to upholding the important responsibility of protecting personal information and individual privacy.

“Privacy is a right that must be proactively safeguarded and protected,” said Angela Doughty, CIPP/US. “Data Privacy Week helps remind us of actions we can take now – before it’s too late- in order to ensure security against costly incidents and harm.”

Strassburger McKenna Gutnick & Gefsky attorney Alexis M. Wheeler has been appointed to the Board of Directors of Bethany Christian Services of Western Pennsylvania. Bethany Christian Services is a global non-profit organization that supports children and families with world-class social services. Ms. Wheeler, who first began working with the organization last year, has assisted by providing support for a transitional foster care facility, as well as providing long-term refugee foster care and refugee and immigrant resettlement services.

At Strassburger McKennaMs. Wheeler focuses her practice primarily on municipal law and real estate, and additionally works closely with the litigation practice group and the investigation practice group. Ms. Wheeler started with SMGG as a Law Clerk and was asked to join the firm as an Associate after graduation from law school.

Mark Brutzkus and Nick Rozansky of Stubbs Alderton & Markiles, LLP have been named to Thomson Reuters’ Top 100: 2023 Southern California Super Lawyers List. Thomson Reuters recognizes Super Lawyers each year in Southern California, a process that involves peer recommendations, independent research, and peer evaluations. The lawyers who excel in the Super Lawyers selection process are prominently recognized in the Top 100 list.

Mr. Brutzkus, a partner at the firm, primarily focuses his practice on representing consumer product companies in corporate, commercial, intellectual property, finance, transactional, and other matters. Mr. Rozansky, also a partner at the firm, works in both the Business Litigation and Trademark and Brand Protection Practice Groups. He represents clients in several industries, including fashion and apparel, jewelry, banking and finance, and consumer products.

The Legal Sales & Service Organization (LSSO), the leading industry association for law firm sales and legal service professionals, is beginning 2023 with the announcement of its 20th Anniversary Advisory Board and Editorial Board.

LSSO Co-Founder Silvia Coulter, a Principal of LawVision:

“These industry influencers are the right people at the right time for LSSO to build on its legacy, and together we can reflect on impact to date and act on plans for the future support of LSSO’s members and the broader legal community’s sales and service goals.”

LSSO launched two decades ago, as positions such as Chief Business Development Officer, Client Relationship Executive, Chief Strategy Officer, Director of Project Management, and Client Value Director did not exist inside law firms. Then and today, these roles are essential for any law firm to survive and thrive, and LSSO was formed to meet the unique needs of these roles in a law firm environment.

LSSO is well known in legal circles for annual RainDance Conference, which in 2023 will be held June 7 and 8 in Chicago, which features tactical discussions with senior business development and legal sales professionals, along with keynote speakers who are sought-after industry change agents, and veteran legal services executives.

Diversity, Equity, and Inclusion Efforts

Twelve lawyers from Barnes & Thornburg have been named to the Lawyers of Color’ Law Firm Leaders publication:

  • Michelle N. Bradford, Partner, Co-Chair of Financial and Regulatory Litigation Practice Group
  • Michael A. Carrillo, Secretary of Management Committee and Managing Partner of Chicago Office
  • Jeff Davis, Of Counsel, Chair of Native American Law and Policy Practice Group
  • Roscoe C. Howard, Jr., Chair of Racial Justice Committee and Managing Partner of Washington, D.C., Office
  • Naomi Y. Kwang, Partner, Chair of Greater China and Southeast Asia Practice Group
  • Salvador P. LaViña, Partner, Chair of Real Estate Department
  • Alan K. Mills, Partner, Chair of Special Servicers Group and Co-Chair of Supply Chain Group
  • David Paragas, Partner, Co-Chair of Federal Relations Practice Group
  • Mari Yamamoto Regnier, Partner, Chair of Global Services-Japan Practice Group
  • Kristen L. Richer, Partner, Co-Chair of Consumer Class Action Defense Practice Group
  • Erika Weiss, Associate, Member of Legal Personnel Administration Committee
  • David A.W. Wong, Partner, Chair of Internet and Technology Group

Lawyers of Color is a national nonprofit dedicated to promoting diversity in the legal profession. The organization regularly recognizes noteworthy attorneys in the field through publications and conferences, seeking to advance democracy, equality, and inclusion in marginalized communities and the practice of law.

Michael D. Thomas, Principal at Jackson Lewis P.C., has been featured in the Los Angeles Times’ 2022 Diversity, Equity, Inclusion & Accessibility magazine as a DEIA Visionary. The magazine seeks to highlight notable thought leaders in the California business community who place great emphasis on diversity, equity and inclusion within their field. Mr. Thomas primarily focuses his practice on defending employers in state and federal wage and hour class actions, working in industries including manufacturing, retail, and hospitality.

“Michael’s longstanding efforts to promote and strengthen DEI policies throughout businesses in California are another affirmation of our commitment to these initiatives as a core value of the firm,” said Alison L. Lynchthe firm’s Orange County office managing principal. “We congratulate him on this recognition and look forward to his continued advocacy for a more inclusive workforce.”

Rebecca E. Shope, Partner and Labor, Employment and Benefits Regional Service Line Leader at Shumaker, has been named a 2023 Leadership Council on Legal Diversity Fellow. Ms. Shope, who primarily practices in the fields of labor and employment, litigation, and family law, will be a part of the prestigious LCLD program, which since 2011 has sought to identify, train, and advance the next generation of leaders in the legal profession. The program provides participants with the opportunity to learn from top leaders in the legal profession, as well as experts in the fields of learning and development and executive coaching.

“Rebecca is an exceptional lawyer and future leader who joins a select group of experienced attorneys from diverse backgrounds who have been recognized for their leadership skills within their organizations and in the wider profession,” said Shumaker Partner and Diversity and Inclusion Committee Co-Chair Cheri Budzynski.

Copyright ©2023 National Law Forum, LLC

First Major Overhaul of Cosmetics Regulation Since FDR Administration

As part of the Consolidated Appropriations Act, 2023, President Biden signed into law the Modernization of Cosmetics Regulation Act of 2022 (“MoCRA”). This is the first major reform of cosmetics regulation since the Federal Food, Drug, and Cosmetic Act (“FDCA”) became law in 1938.[1] MoCRA implements new compliance requirements on the cosmetics industry and also significantly expands the U.S. Food and Drug Administration’s (“FDA”) authority to oversee and regulate cosmetics.

New Obligations for Cosmetics Industry

MoCRA imposes the following new requirements on “responsible persons”[2] and “facilities.”[3] We note that certain of these regulatory requirements may differ for entities considered small businesses under MoCRA.

  • Facility Registration and Product Disclosure. All facilitates (domestic or foreign) that manufacture or process cosmetic products for distribution in the United States must register with FDA by December 29, 2023. Registration is biennial. Further, responsible persons must annually submit cosmetic product listings to FDA and disclose key product information, such as ingredients.
  • Adverse Event Recording and Serious Adverse Event Reporting. Generally, responsible persons must keep records of any adverse events related to products used in the United States for six years and submit any “serious adverse events” to FDA within 15 days of the responsible person’s receipt of the report. MoCRA broadly defines what constitutes a serious adverse event, when compared to other FDA regulatory product categories (e.g., dietary supplements).[4]
  • Labeling Requirements. To improve the reporting of adverse events, responsible persons must include contact information on product labels. Additionally, product labels must identify any fragrance allergens in the product. Labels for products intended for use only by licensed professionals must also indicate that only licensed professionals may use the product.
  • Safety Substantiation Requirement. Responsible persons must ensure that a product is “safe” and keep records “adequately substantiating” the product’s safety.[5] Products without adequate safety substantiation may be considered adulterated under the FDCA. MoCRA also contains a provision stating that it is the sense of Congress that animal testing should not be used for safety testing on cosmetic products and should be phased out with the exception of appropriate allowances.

Increased FDA Oversight of Cosmetics

MoCRA significantly expands FDA’s enforcement authority over the cosmetics industry.

  • Issue Mandatory Recalls. FDA now has mandatory recall authority if the agency concludes there is a reasonable probability that a cosmetic is adulterated or misbranded and the use of the cosmetic will cause serious adverse health consequences or death.
  • Access Records. If FDA has a reasonable belief that a cosmetic product (or one of its ingredients) is adulterated and presents a threat of serious adverse health consequences or death, the agency has authority to access records relating to that product.
  • Suspend Facilities. FDA may suspend a facility’s registration if the agency determines that a cosmetic product manufactured or processed by that facility has a reasonable probability of causing serious adverse health consequences or death and there is a reasonable belief that other products from the same facility may be similarly affected.
  • Federal Preemption. MoCRA explicitly preempts any state or local laws that differ from the federal cosmetics framework regarding facility registration and product listing, good manufacturing practices (“GMPs”), records, recalls, adverse event reporting, or safety substantiation.

Forthcoming FDA Rulemakings and Reports

MoCRA directs FDA to promulgate rules regarding the following three issues. Importantly, the cosmetics industry will have opportunities to provide comment on the proposed rules.

  • GMPs. FDA must establish GMP regulations consistent with national and international standards. Cosmetic products manufactured or processed under conditions that do not meet FDA’s forthcoming GMP regulations may be considered adulterated. The agency must issue a proposed rule by December 29, 2024 and a final rule by December 29, 2025.
  • Fragrance Allergens. FDA must publish regulations to identify fragrance allergens. Cosmetic product labels that do not include fragrance allergen disclosures required by such regulations may be considered misbranded under the FDCA. The agency must issue a proposed rule by June 29, 2024 and a final rule no later than 180 days after the public comment period.
  • Talc. FDA must issue regulations to establish required standardized testing methods for detecting and identifying asbestos in talc-containing cosmetic products.

In addition to the above rulemakings, FDA must issue a report within the next three years on the use of per- and polyfluoroalkyl substances (“PFAS”) in cosmetic products.


Footnotes

  1. MoCRA amends Chapter VI of the FDCA.
  2. A “responsible person” is defined as a manufacturer, packer, or distributor of a cosmetic product whose name appears on the label of that product.
  3. “Facilities” are defined as any establishment (including an establishment of an importer) that manufactures or processes cosmetic products distributed in the United States. MoCRA specifically exempts from registration certain facilities, such as those that (i) only label, relabel, package, hold, or distribute cosmetics products; and (ii) manufacture or process products solely for use in research and evaluation.
  4. “Serious adverse events” are defined as adverse events that result in (i) death; (ii) a life-threatening experience; (iii) inpatient hospitalization; (iv) a persistent or significant disability or incapacity; (v) a congenital anomaly or birth defect; (vi) infection; or (vii) significant disfigurement (including serious and persistent rashes, second- or third-degree burns, significant hair loss, or persistent or significant alteration of appearance); or that require – based on reasonable medical judgment – a medical or surgical intervention to prevent one of the outcomes described above.
  5. “Safe” is defined as a cosmetic product (and its ingredients) that is not injurious to users under the labeling or customary/usual usage. A cosmetic product (or its ingredients) should not be considered injurious solely because it can cause minor and transient reactions or minor and transient skin irritations in some users. Further, “adequate substantiation” of safety means tests or studies, research, analyses, or other evidence or information that is considered, among experts qualified by scientific training and experience to evaluate the safety of cosmetic products and their ingredients, sufficient to support the product’s safety to a reasonable certainty.

Article By Christopher Hanson of Nelson Mullins. Paul Clowes, Law Clerk in the Greenville office, contributed to the drafting of this post.

For more biotech, food, and drug legal news, click here to visit the National Law Review.

Copyright ©2023 Nelson Mullins Riley & Scarborough LLP