Billing Practices and Lawyer Compensation

The new OSB 2017 Economic Survey is available for download. In it, you’ll find a plethora of information about Oregon lawyers, including employment characteristics, compensation, billing practices, career satisfaction, and future plans.  Here are a few highlights:

Employment Characteristics

  • 28.3% of survey respondents reported being a member of at least one other state bar.
  • 86.1% reported working as an Oregon lawyer; 13.9% were not.
  • Lawyers who chose to work part-time did so to maintain work/family balance, pursue other career interests, or because they were semi-retired.
  • Slightly more than 60% of working Oregon lawyers reported being in private practice, with just under 20% in government positions.
  • The most dominant areas of private practice are business/corporate (transactional and litigation), civil litigation (plaintiff and defense), tax/estate planning, family law, and real estate/land use/environmental.
  • The most common practice size was a 1 lawyer office, followed by 3-6 lawyer offices, and 7-20 lawyer offices.

Compensation

  • The statewide mean compensation was $143,277.
  • The amount of compensation was highest in the Portland metro area and lowest on the Oregon coast.
  • The highest paying area of practice was real estate/land use/environmental.
  • Statewide, female lawyers reported earning less than male lawyers.
  • Peak earning years were 50-59, with compensation generally decreasing after age 60.

Billing Practices

  • Statewide, the mean hourly rate was $286, ranging from $226 to $324 regionally. (The highest reported hourly rate was $850 in Portland.)
  • By area of practice, the highest hourly rate was for business/corporate – litigation, with a mean of $333.  Other top billing areas were: real estate/land use/environmental, civil litigation – defendant (excluding insurance defense), and business/corporate – transactional.

Career Satisfaction

  • On a scale of 1-5, with 1 being very dissatisfied and 5 being very satisfied, lawyers statewide had a mean career satisfaction rate of 3.98. In general, the more years in practice, the greater a lawyer’s satisfaction with his/her career.
  • By location, employment, and area of practice, the most satisfied lawyers were:
    • In the Upper Willamette Valley
    • Working as judges or hearing officers
    • Practicing in civil litigation defense, real estate/land use/environmental, or criminal law (private bar).

Future Plans

  • 19.2% of lawyers statewide reported they were planning or contemplating retirement.
  • 6.7% were planning to leave the profession, but not retire.
  • Another 10.3% were planning to reduce their practices.

All Rights Reserved 2018 Beverly Michaelis

 

Last Chance to Register for 7 Steps to Building Better Client Relationships

Last Call to Register for “7 Steps to Building Better Client Relationships”

Join me for a CLE on Wednesday, December 6, 2017 about how to cultivate your network, balance client expectations, proactively control social media content, meet client needs, and become more client-centric by exploring the 7 steps to building better client relationships:

  • Capturing better clients
  • Polishing communication skills
  • Advancing client service through technology and staff
  • Managing social media
  • Improving client satisfaction
  • Strengthening client retention
  • Renewing relationships

Topics include how to CYA the right way, how to say “no” gracefully, dos and don’ts when responding to negative online reviews, how to thank clients as part of your everyday, the simple six-step process to stay in touch, and why you should modernize fee arrangements and billing.

Date/Time/Location

Wednesday, December 6, 2017 from 10:00 a.m. to 11:30 a.m. Pacific Time. This is a live, online webinar.

Who Should Attend?

Lawyers, office administrators, or staff – anyone interested in building better client relationships.

Group Discounts

Discounts available to firms who wish to register 5 or more attendees. Contact organizer to arrange a discount code before registering: beverly@oregonlawpracticemanagement.org.

Does the Program Include Written Materials?

Yes. Written materials are distributed electronically with your registration confirmation.

Ask Questions/Live Polling

Questions are welcome during the live event. Attendees are also encouraged to participate in live, anonymous polling.

Registration Fee

$25 – Visit the Upcoming CLE page, click here, or choose the Register button below. Secure payment processing powered by Eventbrite. Visa, MasterCard, Discover, and American Express accepted. Program materials included in the registration price.

Eventbrite - 7 Steps to Building Better Client Relationships

MCLE Credits
1.50 practical skills pending.

Can’t Attend?

Video and audio recordings of 7 Steps to Building Better Client Relationships will be available to download along with the program materials following the December 6 CLE. Price: $25. Contact me or visit my online CLE store after December 6.

All Rights Reserved [2017] Beverly Michaelis

Should You Take a Cue from Uber?

Getting your “side hustle” on is Uber’s way of suggesting that you join their team to earn extra money. Lawyers sometimes face this dilemma when first transitioning into private practice – giving up a regular paycheck is a high price to pay in exchange for the uncertainty of going solo.

For other lawyers, the practice of law is a second career.  Does this mean they are required to relinquish their first?

Not necessarily.  However, practicing on the side or in addition to another career, does raise some red flags.

Conflicts of Interest

Assuming your employer agrees to let you “moonlight” (and that’s a big assumption), you must address potential conflicts.  At first blush, you might think this concern applies only to lawyers who currently work in a law firm and wish to “work on the side” in a solo practice.  Not true!  If your other job is working as a real estate broker, mortgage broker, financial planner, psychologist, mediator, arbitrator, etc., you must also screen for conflicts.

In her article, Multidisciplinary practice: When Wearing Two Hats May Get You Burned  Helen Hierschbiel points out:

Recognizing and avoiding conflicts of interest is one of the more common concerns for lawyers who have side businesses, particularly when their clients do business with those other companies. Oregon RPC 1.7(a)(2) provides that a current conflict of interest exists if “there is a significant risk that the representation of one or more clients will be materially limited by the lawyer’s responsibilities to another client, a former client or a third person or by a personal interest of the lawyer…” Thus, when there is a significant risk that a lawyer’s personal or other financial interests in a non-legal business will materially limit the lawyer’s responsibilities to a client, that lawyer has a conflict under RPC 1.7(a)(2).

In addition, when a lawyer’s side business is doing business with the lawyer’s client, consideration must be given to the limitations set forth in RPC 1.8(a), which provides more stringent requirements for obtaining client consent than those under RPC 1.7(b). RPC 1.8(a) provides:

A lawyer shall not enter into a business transaction with a client or knowingly acquire an ownership, possessory, security or other pecuniary interest adverse to a client unless:

1. The transaction and terms on which the lawyer acquires the interest are fair and reasonable to the client and are fully disclosed and transmitted in writing in a manner that can be reasonably understood by the client;

2. The client is advised in writing of the desirability of seeking and is given a reasonable opportunity to seek the advice of independent legal counsel on the transaction; and

3. The client gives informed consent, in a writing signed by the client, to the essential terms of the transaction and the lawyer’s role in the transaction, including whether the lawyer is representing the client in the transaction.

Note:  Learn more about this issue and other common conflict traps by attending Limiting Exposure to Conflicts on October 25, 2017.

Other Ethical Concerns

A “side practice” coupled with another job also raises potential concerns about advertising, solicitation, and fee sharing.  Here are Helen’s comments:

Advertising
“Oregon RPC 7.1 generally provides that any communication about a lawyer may not be false or misleading. Determining whether a statement is false may be simple, but assessing whether it is misleading can be more difficult. The cautious approach in making that assessment requires considering how the statement is likely to be interpreted by an unsophisticated consumer. Thus, OSB Formal Op 2005-108 concludes that a lawyer who has an active mediation practice may advertise the practice under “counselors — marriage, family, child and individual” sections of the yellow pages as long as the advertisement reflects the lawyer’s status as a lawyer offering mediation services.”

Solicitation
“Lawyers should also take care to observe the ban on in-person solicitation of legal business when providing non-legal services. The non-legal business may not be used to solicit clients with legal needs in a manner that violates RPC 7.3… (L)awyers would be wise to exercise extra caution when confronted in their non-legal business with an individual who has legal needs as well.”

Fee Sharing
“… (L)awyers should be mindful when setting up an ancillary business, not to allow non-lawyers any control or influence over their law practice.”

Employment Law and Liability Implications

Before you set up a side practice, check your employer’s policy and personnel manuals.  Some employers prohibit moonlighting altogether, others require preapproval of “outside employment activities.”  If you are a contract lawyer and a true independent contractor you should be completely free to have your own solo practice and perform contract work for other lawyers.  Be sure the principal lawyers who hire you agree.  Contact the OSB Professional Liability Fund for more information on setting up a contract practice.

Query:  If a lawyer commits malpractice in the course and scope of his or her “side practice,” could the lawyer’s primary law firm employer be held vicariously liable?  (Food for thought…. as clients have attempted to hold firms responsible for the negligence of “sole practitioners” who were leasing space in the firm’s office suite.)

Professional Liability Coverage

Lawyers engaged in the private practice of law in the State of Oregon are required to carry professional liability coverage through the Oregon State Bar Professional Liability Fund.  This requirement applies equally to full-time and part-time practitioners.  In other words, if you are a lawyer in private practice in Oregon (as defined in the PLF plan), it does not matter whether you provide legal services 50 hours per week or 10 hours per week – coverage is required in either case – and the cost of coverage does not vary based on the hours worked.  With that said, liability coverage in Oregon is complex.  Your best bet is to contact the Professional Liability Fund for more information.

Is it Worth it?

It may not be.  If you are not an active member of the Oregon State Bar, it will be necessary to pay bar dues.  If you intend to engage in the private practice of law and require professional liability coverage, the cost is currently $3500 per year (assuming coverage is not prorated and no discounts apply).

To assess whether a “side practice” makes sense, go through all the steps you would normally follow to set up a full-time law practice.  This includes forming an entity (or not), naming your business, choosing a space option, developing a business plan and budget, opening appropriate bank accounts, consulting with a CPA, creating (and implementing) a marketing plan, and establishing office systems.  If it sounds like your proposed “side practice” is getting more complicated by the minute, it is.  Don’t assume setting up a “side practice” is any less work than committing to the full-time private practice of law.

All Rights Reserved 2017 Beverly Michaelis
Eventbrite - Limiting Exposure to Conflicts

On Demand CLE – eCourt, Trust Accounting, Client Files

If you weren’t able to attend eCourt Malpractice Traps 2017 or one of my other recent CLEs, don’t fret.  On demand CLE is now one click away through Selz.

Visit my online store to download these programs from 2017 and 2016:

OSB accreditation

All programs are current and accredited by the Oregon State Bar.  Visit the online store for details.

Your on demand CLE purchase includes

  • MP4 download (combined audio and video file)
  • M4a download (audio only)
  • Written program materials, including presentation slides and resources
  • Answers to polling questions asked during the live CLE
  • MCLE Form 6 for self-reporting of MCLE credits

Instant digital delivery with options to save to the cloud or your mobile device

Digital files are delivered instantly at checkout.  Download, stream, save to your Dropbox account, or send files to your Kindle.

Secure payment processing

All transactions are handled by Selz and protected with industry standard security, including encryption and SSL secure. The Selz platform is also PCI compliant. Visa, MasterCard, American Express, and Discover accepted.

 

The Importance of Following Up

Today’s post is inspired by Ben Schorr, technologist and senior content developer with Microsoft, who has “been in this business long enough to remember when Al Gore invented the Internet.”

Being the all-around smart guy that he is, Ben recently posted:

Follow-up is one of the most important skills you can have in business.

Ben couldn’t be more right, and let me tell you why.

Clients

When is the last time you checked in with your clients? Asked how they are faring? Provided them with a status update?

Nothing is more aggravating to clients (and more damaging to client relations) than failing to follow-up. Avoid this trap by establishing an office system that reminds you to reach out and make contact.  It can be as simple as a tickler system or reminder app. Consider the advantages of interactive web portals that offer clients 24/7 access and apps like Zipwhip that let you send scheduled texts and auto-replies to clients.  Are phones overwhelming you? Worried about missing client calls? Start using Call Ruby. (Discounts are available to Multnomah Bar Association members.)

Tasks and Deadlines

Always create follow-up reminders for all outstanding to-dos and deadlines – particularly those that require action from someone else.

  • Include everything to ensure you get what you need to complete tasks on time and avoid a potential malpractice claim.
  • Include everyone who owes you information, documents, or an undertaking. Clients, co-counsel, opposing counsel, associates, staff, medical providers, investigators, and process servers are the tip of the iceberg.

Staff

Staff also deserve follow-up. Brief weekly meetings can cover a lot of ground: staff workloads, pending projects, your schedule, and responding to staff questions. For tips on working with and delegating to staff, see Revisiting Smart Delegation.

Finances

It’s been almost 7 years since I penned Accounts Receivable Do Not Improve Like Fine Wine, but the advice has not changed. You simply must follow-up on your finances:

Marketing and Business Goals

Follow-up is key when it comes to goal setting. Start by quantifying what you want to achieve, then be accountable (that’s the follow-up part). Whether it’s a business plan or a marketing plan, you are only cheating yourself if you don’t take the time to measure your results.

I’ve written extensively about marketing this year and prior years, both incidentally and deliberately.  If you’re looking for social media tips, resources for market research, how to calculate your marketing costs per case – you’ll find those posts here.  Use the Search feature at the top of my blog or under Categories choose “Marketing.” Whatever you do: follow-up!

All Rights Reserved 2017 Beverly Michaelis