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ABA Section of Business Law


Business Law Today

Snap Judgments
By Peri Hughes
Working from home . . . all it's cracked up to be?
If you're thinking of approaching your firm about telecommuting even on a semi-regular basis, you might want to think twice. It may seem like a great idea--you can increase your productivity by eliminating time spent commuting and the inevitable interruptions at the office. However, a study by Lexmark International, Inc., which included 1,000 respondents who work from home in varying degrees, reports mixed responses about telecommuting. Respondents felt positively about working from home for the obvious reasons: almost half cited flexible working hours, while the next two most popular responses included saving money on gas and being more productive. The top three drawbacks reported included working more hours overall, dealing with frustrating technology issues, and feeling isolated from coworkers.
Law firm addresses domestic violence
The statistics are staggering. The New York Times reports that 20 percent of all adults employed full-time are or have been victims of domestic violence, according to a survey by the Corporate Alliance to End Partner Violence. The newspaper also reports that almost 8 million days of work are lost by women annually as the result of some form of domestic violence, according to a study by the Centers for Disease Control. However, many employers do not seem to be aware that domestic violence affects their employees and their business.

Greenberg Traurig is trying to combat this problem by training its employees to identify victims of domestic violence. Cesar Alvarez, chief executive officer at Greenberg Traurig, hopes that making employees more aware of the crisis will open the door for victims to come forward. Alvarez said, "[W]hen [employees] have an issue, they can come and discuss it with the Greenberg Traurig people we have trained around the office. We want to encourage them to seek help." The firm offers expanded benefits that include referral networks and leaves of absence for employees in need of help. It also provides guidance to other companies on how to protect their employees from domestic violence.
The piano man
The Connecticut Law Tribune reports on the ingenuity of one lawyer who found a way to bring his hobby to the office. Rather than wait until the end of the day to unwind at home and indulge in his favorite pastime, Ridgefield lawyer Harvey Kulawitz brought his passion to work: his electric piano is now housed behind his desk. The personal injury attorney need only swivel his chair around when he needs a break from his practice. The inspired Kulawitz said playing jazz music on his piano "helps spark creative thoughts. It's a relief from the constant battles and tension of the law practice." He finds his hobby also helps clients relate to him on a more personal level and often ignites conversation. His clients appreciate having a lawyer with an artistic side, and some even enjoy his music while meeting with him.
Online networking exclusively for lawyers
If personal injury attorney Steven Choi has his way, lawyers will have an easy, exclusive way to network socially and professionally with other lawyers across the globe. As reported in The Recorder (a daily legal newspaper in Northern California), Choi has started LawLink.com, a networking site exclusively for lawyers. The site is free to join and allows only lawyers to register (state bar registries are checked for authentication purposes). Comparing the site to other popular networking sites such as LinkedIn, Facebook, and MySpace, Choi explains LawLink is targeted specifically to lawyers and their unique needs. He also notes that the professional nature of LawLink sets it apart from other sites for lawyers such as Lawbby.com. LawLink aims to be more than just a site where lawyers network socially; it also serves as a place for lawyers to communicate with other lawyers professionally--a place to pose questions, seek referrals, post classified ads, and share information. "I think attorneys are going to want their own site specifically for them, because everything is targeted toward the practice of law . . . it's about giving and getting legal business," said Choi.
Law departments spending more on inside counsel
Trends in how corporate law departments are spending their dollars indicate more companies are utilizing inside counsel rather than outsourcing legal work. Hildebrandt International's 2007 Law Department Survey reports that, on average, law departments are spending 6 percent more overall than last year. Of this increase, spending on inside counsel increased by 8 percent compared to just a 3 percent increase in spending on outside counsel. Of note is the rate at which spending on outside counsel has slowed, dropping from between 5 and 6 percent over the past two years. The survey attributes large increases in compensation for inside counsel as the driving factor in the gap in spending. Compensation rates, including cash bonuses, across all levels of lawyers have increased by 10 percent, compared with just 7.5 percent last year. As a result, law departments are spending more than 80 percent of their inside counsel dollars on compensation alone. The survey also reports on the areas of greatest demand for legal services in law departments. According to the report, the highest demand comes from international (36 percent), followed by commercial contracts (35 percent), mergers and acquisitions and regulatory (both at 34 percent), IP and patent (31 percent), and general corporate and commercial rounding out the list (30 percent).
Law firms moving away from affiliate businesses
Though once the rage in the 1980s and 1990s, affiliate businesses seem to have lost their allure. While many law firms ventured into affiliate businesses hoping to add to their revenue streams and expand their reach, the dream more often than not proved less than fruitful, and many firms are now selling off these entities. The National Law Journal reports that of the firms who started affiliate businesses, few actually reaped the financial benefits they had hoped for. Fewer and fewer affiliates have been born in recent years, and the trend toward selling off these businesses has increased. Rather than dedicating more to running these businesses that have little or no impact on their bottom lines, firms are choosing to sell them off and focus on what they do best: practicing law.
The salary myth deflates . . . but not that much!
A November/December entry in Snap Judgments based on a National Law Journal article pointed out that starting salaries of $160,000 for recent law school grads are not widespread and that most lawyers in private practice can expect to start out between $40,000 and $45,000. The latter figures seemed a little too low, prompting us to research the NALP 2007 Associate Salary Survey, which reflects salary figures reported by law firms (rather than by law school graduates) for jobs in private practice. The survey reports that the median starting salary for recent grads is $68,000 in firms between two and 25 lawyers, and increases progressively as law firm size increases, up to $130,000 in firms of 251 lawyers or more. However, the median starting salary for non-firm lawyer jobs ranges between $38,000 and $46,000 (2006 figures). The NALP survey can be found at www.nalp.org/content/index.php?pid=543.

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