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Law Firm Business Plan Template

Written by Dave Lavinsky

Law Firm Business Plan

You’ve come to the right place to create your Law Firm business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Law Firms.

Below is a template to help you create each section of your Law Firm business plan.

Executive Summary

Business overview.

The Harris & Harris Law Firm is a startup up business that provides legal advice and services for clients located within the Scottsdale, Arizona region. The company is founded by Roger Harris and his son, Anthony. Roger Harris has been a partner in a well-established company, Foundations Law Firm, for over twenty years. Anthony Harris is a recent law school graduate who will begin his training under the scholarship of his father. With the extensive list of former clients in hand, Roger and Anthony are confident they can begin open their doors for business and grow the new law firm successfully.

Harris & Harris Law Firm will provide a comprehensive array of services for individuals or business entities who need advice and/or legal representation in court proceedings. Harris & Harris will provide a multi-prong approach to fashion specific solutions for each individual they represent; in that regard, all services are custom-packaged and provided for clients by the lawyers at Harris & Harris. This unique factor will set them above all other area lawyers, as most follow standard processes within the companies where they work.

Product Offering

The following are the services that Harris & Harris Law Firm will provide:

• Client-centric efforts in every case until resolution is found
• Unique process to fully explore client options in any dispute
• Creative and sustainable solutions on a case-by-case basis
• Prioritization of client needs above all else
• Dedication to professionalism and honesty
• Equally dedicated to securing the correct outcomes for our clients
• Team of highly-skilled lawyers who create winning solutions

Customer Focus

Harris & Harris will target the residents of Scottsdale, Arizona. They will also target medium-to-large businesses within Scottsdale, Arizona. They will target former associates and lawyers with whom they can collaborate in the future. They will target residents who have been served a summons for civil or criminal case appearances, whether as a witness, interested party or a potential defendant.

Management Team

Harris & Harris will be owned and operated by Roger Harris. He recruited his son, Anthony, to join the new firm upon Anthony’s recent graduation from law school. Within the next ten years, depending on performance, Anthony will receive incremental distributions of up to 49% of the company value in private stock. This will be based on Anthony’s performance and growth in the company as his role expands.

Roger Harris was formerly a partner in a well-established company, Foundations Law Firm, for over twenty years. He practiced law in the personal law arena, including wills and probates, trusts and other forms of personal law. He also managed the real estate law team at his former place of employment. Roger’s role in Harris & Harris will be the President, with the primary responsibility of driving new client traffic to the company. Roger has recruited Anthony, Richard Cummings, and Torey Crouch to begin their employment at Harris & Harris, as well.

Anthony Harris is a recent law school graduate who will begin his training under the scholarship of his father. Anthony will specialize in a unique processing of individual cases by creating algorithms that will specify which outcomes will best serve the client. Anthony will also represent clients in court and assist in defense appearances. With the extensive list of former clients in hand and the unique processes they’ve designed for clients going forward, Roger and Anthony are confident they can begin and grow the new law firm successfully.

Richard Cummings, a former associate of Roger Harris, will take on the role of Managing Partner in the launch of Harris & Harris. He will oversee all junior partners and staff, as the total number of lawyers grows expeditiously over the first few years.

Torey Crouch, a former law student with Anthony Cummings, will take on the role of Research & Records Manager, as she will form the background work necessary for all the other lawyers on staff.

Success Factors

Harris & Harris Law Firm will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Harris & Harris Law Firm
• Comprehensive menu of services designed to provide specific customer-centric solutions
• Specializations in real estate, trusts, probate, civil and criminal law are all offered under this multi-pronged services of Harris & Harris Law Firm
• Harris & Harris offers family discounts and other forms of packages for clients.
• Harris & Harris offers a “monthly pay” program for clients who need to spread out payments over time.

Financial Highlights

Harris & Harris Law Firm is seeking $200,000 in debt financing to launch its Harris & Harris Law Firm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Harris & Harris Law Firm.

Company Overview

Who is harris & harris law firm.

Harris & Harris Law Firm is a newly established, full-service law firm in Scottsdale, Arizona. Harris & Harris Law Firm will be the most reliable, solution-centric and effective choice for clients in Scottsdale and the surrounding communities. Harris & Harris Law Firm will provide a comprehensive menu of attorney services for any individual, family or business to utilize. Their full-service approach includes a comprehensive array of services that are uniquely prepared for each client.

  Harris & Harris Law Firm will be able to serve the residents and businesses of Scottsdale. The team of professionals are highly qualified and experienced in all aspects of the law and several permutations of legal representation. Harris & Harris Law Firm removes all headaches and issues of securing a comprehensive law firm that is reliable and dedicated to clients, and ensures all issues are taken care of expeditiously, while delivering the best customer service.

Harris & Harris Law Firm History

Since incorporation, Harris & Harris Law Firm has achieved the following milestones:

• Registered Harris & Harris Law Firm, LLC to transact business in the state of Arizona.
• Has a contract for 10,000 square feet of office space midtown Scottsdale office buildings
• Reached out to numerous former clients and contacts to consider Harris & Harris for all their legal representation needs.
• Began recruiting a staff of five lawyers and three office personnel to work at Harris & Harris.

Harris & Harris Law Firm Services

The following will be the services Harris & Harris Law Firm will provide:

• Dedication to professionalism and honest dialogue

Industry Analysis

The law firm industry is expected to grow over the next five years to over $75 billion. The growth will be driven by an increased population requiring legal representation The growth will be driven by the increase of income for individuals, which can support the decision to hire representation. The growth will be driven by the increase in faulty or misleading documents, agreements, and certifications. The growth will be driven by legal firms who collect fees for business mergers and negotiations. Costs will likely be reduced as current technology becomes dated and new, higher-performing technological advances are employed.

Customer Analysis

Demographic profile of target market, customer segmentation.

Harris & Harris Law Firm will primarily target the following customer profiles:

• Residents of Scottsdale region
• Businesses within Scottsdale region
• Former associates and clients with whom they can collaborate
• Individuals or businesses that have been served with a summons to appear in court

Competitive Analysis

Direct and indirect competitors.

Harris & Harris Law Firm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Diamond & Johnson Defense

Diamond & Johnson Defense is a law firm located in Phoenix, Arizona. The firm was established in 1998 and has three partners who oversee all cases: Robert Anderson, who is a lead criminal defense attorney; Lisa Martinez, who is a criminal appeals and post-conviction relief attorney, and David Collin, an investigations and trial preparation lawyer. The law firm has a total of six attorneys who specialize in criminal defense, and six office staff, who communicate directly with each lawyer on staff.

Diamond & Johnson Defense is known as “The Defendant’s Law Firm” in Scottsdale, as 99% of the law practice is focused on personal law representation in civil or criminal court cases. The law firm charges fees within the top 5% in the county for personal representation. The years of practice have proven to be winning ones for Diamond & Johnson Defense, as over 69% of their clients have been released without any prison time. The team at D & J Defense are known to be highly-skilled at investigations and trial preparation, with several team members who will take on a single case to thoroughly cover every possible defense for each client.

Legacy Law Associates

Legacy Law Associates is well-known as a “compassionate” team of attorneys, specializing in family wills and trusts. With a team of dedicated and experienced attorneys, the firm aims to provide comprehensive legal services that meet the goals of each client or family who need legal services during a difficult season of life. Legacy Law Associates consists of a partnership of two attorneys, Jonathan Dunlap and David Sessions, who established the law firm in 2005 in Phoenix after graduating from law school together. Together, the co-owners seek families who have legal needs after the death of a family member; such as estate negotiations, final documents and closures, trustee assistance, probate searches, and confidential proceedings per the will of any individual. The law firm has hired a private secretary for each partner and is housed in a small office in downtown Phoenix. The firm has not grown since 2007 and does not choose to make that a pivotal goal for their partnership, relying instead on the on-going legal processes of trusts, wills, probate and other related items.

Construction Defect Law Firm

The Construction Defect Law Firm is owned and operated by Chip Jackson and is located in Green Valley, Arizona. The focus of the law firm is to represent homeowners who have determined a new or nearly-new home contains construction defects. In most cases, the home builder has moved on from the geographic region and, even when contacted repeatedly, is unwilling to rectify the situation by repair or monetary refund.

Chip Jackson is a highly-skilled evaluator and contractor within the construction industry. He is able to determine the viability of most construction issues with merely a cursory examination and has proven over the past ten years to be a worthy adversary in the courtroom. He wins 98% of all cases he brings into the courtroom. Chip’s clients are always homeowners who have been victims of construction defects in homes that are typically new or less than ten years old. His skill set includes negotiation outside the courtroom, compelling videos of problematic construction processes, drone footage of damaged rooftops, chimneys and other areas not typically viewed by homeowners and other support graphics that demonstrate the defects of the property.

Competitive Advantage

Harris & Harris Law Firm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Harris & Harris Law Firm will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for Harris & Harris Law Firm is as follows:

Word of Mouth/Referrals

Harris & Harris Law Firm has built up an extensive list of contacts over the years by providing exceptional service and expertise to former clients and associates. This group will follow Roger and Anthony to their new company and help spread the word of Harris & Harris Law Firm.

Professional Associations and Networking

Harris & Harris Law Firm will take an active role in all community organizations and networking events, where they can spread the word about the launch and start of their company. The law firm will offer an Open House specifically for association members to acquaint the city of Scottsdale with their new services and location.

Website/SEO Marketing

Harris & Harris Law Firm will fully utilize their website. The website will be well organized, informative, and list all the services that Harris & Harris Law Firm provides. The website will also list their contact information and list their available reservation times to meet with one of the attorney’s for an initial consultation. The website will employ SEO marketing tactics so that anytime someone types in the Google or Bing search engine “law firm services” or “lawyer near me”, Harris & Harris Law Firm will be listed at the top of the search results.

The pricing of Harris & Harris Law Firm will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Harris & Harris Law Firm. Operation Functions:

• Roger Harris will be the Owner and President of the company. He will engage and manage new client relations.
• Anthony Harris will be the Legal Outcomes & Research Manager for the company. He will work with clients to craft potential outcomes based on algorithms and research.
• Richard Cummings will take on the role of Managing Partner and, as such, will oversee junior partners and staff, as the total number of staff lawyers is expected to markedly grow in the coming five years.
• Torey Crouch will take on the role of Research & Records Manager, where she will support and provide research for all junior and senior attorney staff members. She will also oversee the office personnel.

Milestones:

Harris & Harris Law Firm will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Harris & Harris Law Firm
• 6/1/202X – Finalize contracts for Harris & Harris Law Firm clients
• 6/15/202X – Begin networking at association meetings and industry events
• 6/22/202X – Begin moving into Harris & Harris Law Firm office
• 7/1/202X – Harris & Harris Law Firm opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for Harris & Harris Law Firm are the fees they will charge to clients for the legal services and representation they provide.

The cost drivers will be the overhead costs required in order to staff Harris & Harris Law Firm. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Harris & Harris Law Firm is seeking $200,000 in debt financing to launch its law firm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients Per Month: 125
• Average Revenue per Month: $325,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, law firm business plan faqs, what is a law firm business plan.

A law firm business plan is a plan to start and/or grow your law firm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Law Firm business plan using our Law Firm Business Plan Template here .

What are the Main Types of Law Firm Businesses? 

There are a number of different kinds of law firm businesses , some examples include: Commercial Law, Criminal, Civil Negligence, and Personal Injury Law, Real Estate Law, and Labor Law.

How Do You Get Funding for Your Law Firm Business Plan?

Law Firm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Law Firm Business?

Starting a law firm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Law Firm Business Plan - The first step in starting a business is to create a detailed law firm business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your law firm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your law firm business is in compliance with local laws.

3. Register Your Law Firm Business - Once you have chosen a legal structure, the next step is to register your law firm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your law firm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Law Firm Equipment & Supplies - In order to start your law firm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your law firm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful law firm business:

• How to Start a Law Firm

Law Firm Business Plan Template

Written by Dave Lavinsky

Law Firm Plan

Over the past 20+ years, we have helped over 1,000 lawyers to create business plans to start and grow their law firms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a law firm business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your law firm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a law firm, or grow your existing law firm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your law firm in order to improve your chances of success. Your law firm plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Law Firms

With regards to funding, the main sources of funding for a law firm are personal savings, credit cards and bank loans. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Finish Your Business Plan Today!

How to write a business plan for a law firm.

If you want to start a law firm or expand your current one, you need a business plan. Below are links to each section of your law firm plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of law firm you are operating and the status. For example, are you a startup, do you have a law firm that you would like to grow, or are you operating law firms in multiple cities?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the law firm industry. Discuss the type of law firm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of law firm you are operating.

For example, you might operate one of the following types of law firms:

• Commercial Law : this type of law firm focuses on financial matters such as merger and acquisition, raising capital, IPOs, etc.
• Criminal, Civil Negligence, and Personal Injury Law: this type of business focuses on accidents, malpractice, and criminal defense.
• Real Estate Law: this type of practice deals with property transactions and property use.
• Labor Law: this type of firm handles everything related to employment, from pensions/benefits, to contract negotiation.

In addition to explaining the type of law firm you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, number of cases won, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the law firm industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the law firm industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your law firm plan:

• How big is the law firm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your law firm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your law firm plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: businesses, households, and government organizations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of law firm you operate. Clearly, households would respond to different marketing promotions than nonprofit organizations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most law firms primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other law firms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes accounting firms or human resources companies. You need to mention such competition as well.

With regards to direct competition, you want to describe the other law firms with which you compete. Most likely, your direct competitors will be law firms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of cases do they accept?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better legal advice and services?
• Will you provide services that your competitors don’t offer?
• Will you provide more responsive customer interactions?
• Will you offer better pricing or flexible pricing options?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a law firm plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of law firm company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to in-person consultation, will you provide virtual meetings, or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products and services you offer and their prices.

Place : Place refers to the location of your law firm company. Document your location and mention how the location will impact your success. For example, is your law firm located in a busy business district, office building, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your law firm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your law firm, including filling and filing paperwork, researching precedents, appearing in court, meeting with clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to file your 100th lawsuit, or be on retainer with 25 business clients, or when you hope to reach $X in revenue. It could also be when you expect to expand your law firm to a new city.  

Management Team

To demonstrate your law firm’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing law firms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with legal experience or with a track record of successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you file 25 lawsuits per month or sign 5 retainer contracts per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your law firm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a law firm:

• Location build-out including design fees, construction, etc.
• Cost of licensing, software, and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or your certificate of admission to the bar.  

Putting together a business plan for your law firm is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything you need about starting a law firm business plan; once you create your plan, download it to PDF to show banks and investors. You will really understand the law firm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful law firm.  

Law Firm Business Plan FAQs

What is the easiest way to complete my law firm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Law Firm Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of law firm you are operating and the status; for example, are you a startup, do you have a law firm that you would like to grow, or are you operating a chain of law firms?

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Get Your Employment Law Business Essentials Today!

Foster growth with 250+ time-saving, business-specific templates. Swift designs, easy tools, all in one place.

Embarking on an Employment Law Venture

Starting an Employment Law business is an exhilarating journey that combines the precision of legal practice with the thrill of entrepreneurship. It requires not just a profound understanding of employment laws but also an unwavering commitment to advocating for workplace fairness and equity. Aspiring entrepreneurs must immerse themselves in the latest legislative developments and judicial interpretations to offer unparalleled service. Crafting a robust business plan that outlines your niche, services, and target clientele is crucial in this highly competitive field. Networking with industry professionals and building a reliable team are essential steps to creating a foundation for success. Above all, it's imperative to foster an environment of trust and professionalism where clients feel their rights are vigorously protected.

Understanding the Legal Landscape

Embarking on the journey to start an employment law business is akin to setting sail on a vast sea filled with both opportunity and challenge. The first hurdle many encounter is grasping the complex legal landscape that governs employment law. This isn't just about knowing the law; it's about understanding how it applies in diverse situations. Businesses must navigate through federal, state, and local regulations, which are often a tangled web of complexity. Staying updated with the latest legal changes and interpretations is crucial, as they can significantly impact your clients and your practice.

Finding Your Niche in Employment Law

The world of employment law is vast, covering everything from discrimination to wrongful termination. Finding your niche within this expanse can set your business apart and make it more successful. This requires a deep dive into what areas you're most passionate about and where you can offer the most value. It's not just about choosing a path but about identifying where your expertise can truly make a difference. Once you've determined your niche, you'll find it easier to target your marketing efforts and build a reputation as an expert in that area.

Building a Strong Client Base

One of the greatest challenges when stepping into the arena of starting an employment law business is building a strong client base. It's not merely about finding clients; it's about finding the right clients--those who need your specific expertise. This means understanding who benefits most from your services and reaching out to them through strategic marketing and networking. Relationship building is key here; trust takes time to develop but is fundamental for repeat business and referrals. Additionally, providing exceptional service is paramount, as satisfied clients are more likely to recommend your services to others.

Establishing an Online Presence

In today's digital world, having a strong online presence is no longer optional for legal businesses; it's essential. This encompasses more than just setting up a website. It involves creating content that showcases your expertise, engaging with potential clients on social media, and optimizing for search engines to ensure you're found by those in need of your services. Your online platforms should reflect the professionalism and quality of service you offer, acting as a digital front door for prospective clients. Furthermore, regular updates and active engagement online help build credibility and trust even before the first conversation happens.

Navigating Financial Management

Another critical aspect how to start and run any business successfully is mastering financial management. For an employment law business, this means budgeting effectively, keeping meticulous records for billing purposes, and managing cash flow efficiently. Unexpected expenses can arise, particularly in litigation cases that may extend over long periods. Planning for these eventualities by maintaining a reserve fund can safeguard against financial strain. Additionally, using accounting software tailored to law firms can streamline financial administration, freeing up valuable time for client-focused activities.

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Maintaining Compliance with Ethical Standards

The legal profession is steeped in ethical responsibilities; starting an employment law business is no exception. Maintaining unwavering adherence to these standards not only protects you legally but also enhances your reputation among clients and peers. This involves everything from client confidentiality to conflict of interest checks. Regularly attending continuing legal education (CLE) courses on ethics helps keep these principles at the forefront of one's practice. Most importantly, integrating ethical considerations into every facet of your business operations ensures long-term success built on integrity.

Leveraging Technology for Efficiency

The use of technology can be a game-changer in how effectively you manage your employment law business. From case management software that streamlines workflow to digital marketing tools that automate client outreach, technology offers myriad ways to enhance efficiency. More so, adopting secure communication channels ensures confidentiality while facilitating smoother client interactions. Even something as simple as cloud storage can revolutionize document management, allowing easy access anytime, anywhere while saving physical space. Embracing technological solutions not only saves time but also significantly reduces operational costs.

Promoting Your Services Creatively

In a sea of competition, standing out requires creativity in how you promote your services. Traditional advertising methods are no longer sufficient on their own; today's environment demands innovative approaches that capture attention and resonate with potential clients. Utilizing storytelling in marketing materials can convey the impact of your work more compellingly than statistics alone ever could. Moreover, participating in community events or offering free seminars can showcase your expertise while contributing positively to public awareness around employment rights issues. Lastly, leverage tools like Desygner for crafting visually appealing promotional materials that grab attention while conveying professionalism.

As we delve deeper into strategies like promoting our services creatively or establishing an online presence, tools such as Desygner become invaluable assets in our toolkit. Its ability to help create professional-looking designs effortlessly means we can focus more time on what we do best--navigating the intricacies of employment law for our clients--while still ensuring our branding catches the eye in all the right ways.

Concluding Thoughts on Starting an Employment Law Business

In conclusion, the journey to starting a successful employment law business is both challenging and rewarding. It requires a deep understanding of the legal landscape, as well as an entrepreneurial spirit that drives you to serve your clients with dedication and excellence. As we've explored the intricacies of establishing this type of business, it's clear that success hinges on several key factors.

Firstly, gaining specialized knowledge in employment law cannot be overstated. This forms the foundation of your practice, enabling you to provide valuable advice and representation. Coupled with this, developing strong interpersonal skills will enhance your ability to connect with clients and understand their needs deeply.

Beyond the expertise and soft skills, the operational aspects of running a business are equally critical. From selecting an appropriate business structure to managing finances wisely, these steps ensure the sustainability and growth of your venture. Furthermore, marketing your services effectively will attract the right clients and establish your reputation in the field.

To encapsulate our discussion:

• Deepen your expertise in employment law.
• Build strong relationships with clients.
• Choose a suitable business structure.
• Mindful financial planning is crucial.
• Invest in effective marketing strategies.
• Leverage technology for efficiency.
• Understand the importance of continual learning.
• Consider using Desygner for your branding needs.

In summary, launching an employment law business is a significant undertaking that demands attention to detail, a steadfast commitment to excellence, and a passion for justice. By adhering to these principles and embracing tools like Desygner for your branding efforts, you're well-positioned to create a thriving practice that makes a real difference. Remember, success is within reach -- all it takes is the right approach and determination. Consider signing up at Desygner today to elevate your brand as you embark on this exciting journey.

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What Is Employment Law?

Employment law governs every detail of the relationship between employee and employer. It is designed to protect employees and their employers through regulations that guarantee workplace safety, protect against child labor, ensure a fair and equitable hiring process , and address family and medical leave. Employment law also regulates the hours an employee can work and sets wages. 

It is important that employees and employers understand the basic elements of employment law in order to avoid legal action. For example, if an employee makes false statements that harm an employer’s business or reputation, they may face a lawsuit — even if their statement doesn’t cause any monetary loss.

5 Critical Employment Laws to Know

Family and medical leave act (fmla).

• The Americans With Disabilities Act (ADA)

The Fair Labor Standards Act (FLSA)

Occupational safety and health act (osh), employee retirement income security act (erisa).

More People Management Basics What Are Compensation and Benefits?

Why Is Employment Law Important?

If an employer breaks an employment law, they may fall under investigation or incur penalties including extensive fines. Examples of employer misconduct include failing to pay mandatory overtime, denying paid leave, wrongful termination or asking prohibited questions on job applications. Employment law is structured so that both employer and employee are treated fairly, which in turn keeps a business running properly. These regulations ensure that businesses can focus on productivity instead of directing resources to resolving disputes.

For example, employers have the right to terminate an employee if they are not properly performing their duties. They also have the right to terminate an employee if the company can no longer afford to keep them on staff, or for more obvious reasons such as theft or defamation. Employment laws ensure that employees fulfill their contract with their employer, thereby protecting employers from bad faith actors.

Harassment in the Workplace

There are limits to the protections offered by employment laws. For example, harassment is illegal, but “petty teasing” is not. According to the U.S. Equal Employment Opportunity Commission (EEOC) , harassment is unwelcome conduct that is based on race, color, religion, sex, national origin, older age, disability or genetic information. Harassment becomes unlawful when enduring the offensive conduct becomes a condition of continued employment, or the conduct is severe or pervasive enough to create a work environment that a reasonable person would consider intimidating, hostile or abusive. 

Petty teasing doesn’t qualify as unlawful, unless it creates a work environment that is intimidating, hostile or offensive. Offensive conduct may include, but is not limited to, offensive jokes, slurs, epithets or name calling, physical assaults or threats, intimidation, ridicule or mockery, insults or put-downs, offensive objects or pictures, and interference with work performance.

Who Is Exempt From Employment Laws?

Employment law also doesn’t protect all businesses equally. For example, some small businesses may be exempt from certain requirements, and managers may not have all the same wage protections as hourly workers. Additionally, most states offer “at-will” employment, which means an employer can terminate your employment for any reason as long as it’s not unlawful. 

While employment laws don’t fully protect against all manner of workplace abuse, they do protect against many areas that were historically difficult to regulate. The Fair Labor Standards Act of 1938 restricts the hours that children under age 16 are allowed to work, placing limits on child labor. However, children 12 and younger can still legally work on farms, despite risks from heavy machinery and heat-related illnesses from sun exposure.

Related Reading How to Write Inclusive Job Descriptions

What Are the Main Characteristics of Employment Law?

Employment law is an extensive, relatively young branch of law that’s constantly changing. It allows employees to understand their rights and is often divided into areas such as wages and benefits, health and safety, and employment discrimination. Other key areas include family and medical leave, labor relations, unemployment compensation, employee contracts, immigration, the hiring process , pensions, social security and wrongful termination. The U.S. Department of Labor administers and enforces most federal employment laws.

What Are the Key U.S. Employment Laws?

The U.S. Department of Labor oversees an extensive range of employment laws, but there are other agencies that monitor the workplace as well. The U.S. Equal Employment Opportunity Commission (EEOC) enforces many of the laws protecting workers from discrimination, working with Fair Employment Practices Agencies (FEPAs) to manage charges of employment discrimination at the state and local levels. 

Additionally, the National Labor Relations Board (NLRB) oversees the law that controls the relationship between unions and their members. Finally, the U.S. Department of Justice administers the Americans with Disabilities Act , which protects people with disabilities in many areas of life, including the workplace.

Here’s an overview of key U.S. employment laws. 

The Fair Labor Standards Act (FLSA) of 1938 prescribes standards for wages and overtime pay, which affect most private and public employment. The FLSA requires employers to pay employees who are not otherwise exempt at least the federal minimum wage and overtime pay of 1.5 times the regular rate of pay. (An exempt employee is salaried, and does not receive overtime pay or qualify for minimum wage.) The FLSA also restricts the hours that children under age 16 are allowed to work and prohibits the employment of children under age 18 in jobs considered too dangerous.

The OSH Act of 1970 is administered by the Occupational Safety and Health Administration (OSHA). Covered employers must comply with OSHA’s regulations as well as their health and safety standards. Under the OSH Act, employers must also provide employees with a workplace free from recognized, serious hazards, which include everything from workplace violence to hazardous material spills. OSHA enforces the law through workplace inspections and investigations.

While the U.S. Department of Labor oversees federal employee compensation, it has no oversight of state workers’ compensation programs . State government or private company employees should contact the workers’ compensation program from their state for more information.

More From This Expert What Is Employee Relations?

One of the most well-known and often-used labor laws is the Family and Medical Leave Act (FMLA) of 1993, which requires employers to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for the birth or adoption of a child or for the serious illness of the employee or the employee’s spouse, child or parent.

The Employee Retirement Income Security Act of 1974 (ERISA) regulates employers who offer pension or welfare benefit plans for their employees. Certain employers and plan administrators must fund an insurance system to protect specific retirement benefits and pay premiums to the federal government.

The federal government also has labor laws governing:

• Construction and transportation industries
• Mine safety
• Migrant and seasonal agricultural workers
• Manufacturing plant closings and layoffs
• Recipients of government contracts, grants or financial aid
• Wage garnishment
• Unions and union members

A more obscure law is the Employee Polygraph Protection Act , which prohibits most employers from using lie detectors on employees but permits polygraph tests in specific circumstances.

Common Causes of Action in Employment Law

Employees can take legal action against their employer as individuals or as a union. While it’s more difficult, employers can also sue their employees. It’s important for both parties to be proactive and know their rights and responsibilities to avoid running afoul of the law. 

When Can Employees Sue Their Employers?

• Inconsistent discipline/discrimination : Employers must ensure they’re applying disciplinary measures uniformly across employees. If an employee gets away with something for which their coworker was fired, the terminated employee could claim discrimination and pursue legal action.  
• Workplace harassment : This is a type of discrimination that violates federal or state anti-discrimination laws. Harassment can prompt legal action if a workplace becomes hostile, abusive or intimidating.
• Wrongful termination : Firing an employee for illegal reasons or in a way that breaches a contract constitutes wrongful termination. Examples include an employer making an employee’s work so difficult that they quit on their own, an employee getting fired due to discrimination or an employee reporting an employer for illegal activity and getting fired (retaliation).
• Wage law violations : Employers can face legal action for denial of overtime pay, errors in the calculation of hours and overtime, and misclassifying employees as independent contractors.

More From Our Company Culture Experts How to Handle Layoff Announcements

When Can Employers Sue Their Employees?

• Negligence: If an employee causes injury to another person or property, the employer may be able to sue.
• Defamation: If an employee knowingly makes false statements that harm the employer’s business or reputation, the employer may pursue legal action. Even if the statement doesn’t cause any monetary loss, if it is harmful to the employer’s reputation they may face a lawsuit.
• Violating a non-compete clause: Many employment contracts prevent an employee from working in a specific field within a set geographic area for a certain time post-employment. Certain states no longer enforce non-compete clauses, but many still uphold the agreements if they find that they were reasonable and made in good faith.

Built In’s expert contributor network publishes thoughtful, solutions-oriented stories written by innovative tech professionals. It is the tech industry’s definitive destination for sharing compelling, first-person accounts of problem-solving on the road to innovation.

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How to Write a Law Firm Business Plan + Free Sample Plan PDF

Elon Glucklich

6 min. read

Updated April 3, 2024

Free Download:   Sample Law Firm Business Plan Template

It’s a dynamic time to be in the legal industry. Over 63,000 new attorneys have started practicing in the U.S. in the past decade, and they’re joining law firms that are increasingly leveraging new technologies like AI to work more efficiently.

Owning your own law practice offers numerous advantages, from greater control of your caseloads to flexibility in setting billing rates. 

But running a successful firm requires more than a deep knowledge of the law. 

You need to market yourself, understand potential clients’ motivations and desires, and clearly explain to them why they should hire you over another firm. All of which you can figure out by going through the process of writing a business plan.

• What should you include in a law firm business plan?

Here are a few sections we recommend including in any law firm business plan:

Executive summary

Market analysis, marketing plan, company overview, financial plan.

The details of your plan will vary based on factors like the size of your legal practice and whether or not you need funding

If you’re seeking a bank loan or investment, you’re best off following the traditional approach to writing a business plan . Otherwise, don’t feel bound to writing a full plan. You can just focus on the business plan sections that are most relevant to your situation. 

The executive summary is your opening pitch to the reader. Although it comes first in a business plan, you should write it last, since it distills your entire plan into a concise, one- to two-page overview. 

Start by outlining your law firm’s focus and current status. Are you:

• A newly founded practice
• An established firm seeking expansion
• A multi-location enterprise

Then, summarize your practice areas and target clientele. Describe the issues you’re solving for potential clients, and why they should choose you over competitors. 

Maybe your team has experience that’s relevant to your ideal client, or you offer an appealing fee structure. Anyone who reads the executive summary should be able to understand what makes your law firm unique .

Your executive summary briefly touches on your law firm’s area of focus. But the services section is where you give readers a detailed look at the expertise your legal practice offers, and how you address specific client needs.

What are your core practice areas? Do you represent:

Businesses: Contract disputes, regulatory compliance, employment law issues

Individuals: Personal injury claims, divorce proceedings, estate planning

Simply list all of your legal services. If you run an existing law practice, you can mention your existing client base. Also, specify if your law firm specializes in courtroom litigation, drafting contracts, or legal advisory services.

When writing out your services, consider what sets your firm apart. Maybe you provide free or low-cost initial consultations or specialize in areas underserved by competitors. Any services that might give you a competitive advantage are worth mentioning.

Understanding your potential client base is vital. Do you know the size of your market ? What are their characteristics? 

To conduct a market analysis , start by profiling your ideal client. Consider basic demographic information , like their:

• Income level
• Geographic location

Take their life circumstances into account as well. Are they navigating events like:

• Recovering from an injury
• Being charged with a crime
• Running a business
• Planning an estate

Depending on their circumstances, you’ll need to research relevant trends in your area to determine whether there’s a growing demand for the services you offer. 

Document who your competitors are as well. What other law firms might potential clients turn to? Note their strengths and weaknesses and compare them to your own in your market analysis. 

This research will help you develop a unique value proposition—something only your firm offers that you can emphasize in your marketing strategy.

The marketing and sales plan is where you describe how you will stand out and attract clients.

Where are your potential clients seeking out legal information? Common channels for law firms to market their services include:

• Television and radio commercials
• Print and online advertisements
• Company website

You’ll likely want to consider a combination of these tactics. 

But before spending your marketing budget, take some time in your business plan to determine how you’ll position yourself. If you’ve determined your law practice’s unique value proposition , it should be incorporated into all of your messaging.

Say you offer a unique combination of legal services in your market, such as financial compliance services for businesses and high-net-worth individuals. Your marketing plan is where you develop engaging messaging around your services that are tailored to your ideal client and the medium you’re promoting your services on.

Examples could include:

• Hiring a video production team to film a commercial for your legal practice
• Ensuring your law firm’s website is optimized for visibility on search engines.
• Creating pamphlets highlighting your service to distribute at business networking events or places where high net worth individuals frequent, like upscale health clubs or financial advisory offices.

One key point to remember is that the legal profession has specific marketing restrictions, to ensure law firms are promoting their services in an honest, ethical way. Make sure your plans adhere to the bar association’s guidelines .

The company overview isn’t an exhaustive history of your firm’s experience. It’s meant to quickly give the reader an understanding of your background, experience, and the structure of your firm.

Start with the basics:

Founding date: When was the firm established?

Legal structure: Is it a partnership, LLC, corporation, or other structure?

Location(s): List the communities your firm serves

Provide some detail about you and your team as well:

Founding partners: Summarize their legal experience, specializations, and any notable accomplishments.

Key Associates & staff: Briefly outline their roles and credentials

If your legal practice is already established, note any milestones you’ve achieved, such as major cases or community recognition. But even if you’re just starting, listing milestones like securing office space or building an initial client base are worth noting here as well.

Your law firm’s financial plan is crucial to determining if you have a strategy for running a viable business over the long term. 

Here’s a breakdown of what you need:

Sales forecast : Project revenue based on billable hours, retainer fees, contingency cases (if applicable), and any other income sources. Be realistic, especially in the early stages.

Expense budget : List all of your costs, including:

• Salaries and benefits:
• Rent and office expenses
• Malpractice insurance and bar dues
• Technology (i.e. case management software)
• Marketing and client development

Profit & Loss (P&L) : Your income minus your expenses, showing if you expect to be profitable.

Cash flow statement : Predicts when cash comes in and goes out of your business. Cash flows are crucial to ensure you can cover bills and payroll.

Balance sheet : An overview of your law practice’s financial health, listing assets (cash, accounts receivable), liabilities (loans), and equity.

If you’re seeking outside financing to start your legal practice, list startup costs like office build-outs, initial marketing, and technology investments separately from your expenses, since these are areas you’ll be looking to fund with lender or investor funds.

Additionally, be clear about assumptions you’re making when forecasting your revenue streams (case volume, hourly rates, etc.). Researching similar law firms can help you ensure your projections are reasonable.

• Download your free law firm sample business plan

Download our law firm sample business plan for free right now and use it for reference as you write your own plan. You can even copy and paste sections from the sample plan and customize them for your business. Just make sure you’re taking the time to do your own research.

You can also view other legal business plans , or browse the full Bplans library of over 550 sample business plans across numerous industries.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Legal product reviews and business guidance from industry experts.

19 Mar 2020

How to Write Your Law Firm Business Plan

By Cari Twitchell

News Articles Healthy Strategy

Every new law practice needs a business plan . This is a guide to creating one.

Here is what should go in your business plan once you’ve decided about your law firm business model.

Section One: Executive Summary

This section provides a succinct overview of your full plan. It should also include the following:

• Mission statement.  This statement should be one or two sentences at most, so you can quickly state it off the top of your head at any given moment. It should clearly state your value and offer inspiration and guidance, while being plausible and specific enough to ensure relevancy. For further direction on how to write a mission statement, read this Entrepreneur article .
• Core values.  Your core values outline the strategy that underpins your business. When written well, they help potential employees and clients understand what drives you every day. When written incorrectly, they include meaningless platitudes that become yet another thing forgotten or ignored during practice. To pack the most punch into your core values, write them as actionable statements that you can follow. And keep them to a minimum: two to four should do just fine. You can read more about writing core values at  Kinesis .
• What sets you apart.  If you are like every other attorney out there, how will you stand out? This is known as your unique selling proposition (USP). What is it that will convince clients to turn to you instead of your competition? By clearly stating your USP, you identify what it is about your firm that will ensure your success.

Are you feeling slightly overwhelmed by all of this? Then write this section last, as you’ll find much of what you write here is a summary of everything you include in subsequent sections.

Section Two: Company Description

Write a succinct overview of your company. Here is what it should cover:

• Mission statement and values.  Reiterate your mission statement and core values here.
• Geographic location and areas served.  Identify where your offices are located and the geographic areas that you serve.
• Legal structure and ownership. State whether you are an LLC, S-Corp or other legal entity. If you are something other than a sole proprietor, identify the ownership structure of your firm. How does your law firm business model influence the ownership type?
• Firm history.  If you are writing or updating a plan for a law firm already in existence, write a brief history that summarizes firm highlights and achievements.

This section is often the shortest. Do not spend much time or space here. Touch on the major points and move on.

Section Three: Market Analysis

Done correctly, a well thought out market analysis will help you identify exactly what your potential clients are looking for and how much you should charge for your services. It also enables you to identify your competitors’ weaknesses, which in turn helps you best frame your services in a way that attracts your preferred clientele. You probably already considered some of these subjects when deciding on the small law firm business model, but you need to document them.

Elements of a market analysis include:

• Industry description.  Draft up a summary that encompasses where your particular legal niche is today, where it has been, and which trends will likely affect it in the future. Identify everything from actual market size to project market growth.
• Target audience.  Define your target audience by building your ideal client persona. Use demographics such as location, age, family status, occupation and more. Map out the motivations behind their seeking your services and then how it is you are best able to satisfy their requirements.
• Competitive analysis.  This is where you dive into details about your competitors. What do they do well? Where do they fall short? How are they currently underserving your target market? What challenges do you face by entering legal practice in your field of choice?
• Projections.  Provide specific data on how much your target audience has to spend. Then narrow that down to identify how much you can charge per service.

A proper market analysis includes actual data to support your analysis. If you are unsure of where to find data, Bplans  has a great list of resources for you to use. And if you would like to read further about conducting a market analysis, check out this article from the Small Business Administration.

Section Four: Organization & Management

This section goes into detail about you and any others who may have ownership interest in the firm. The small law firm business model section here should incorporated into the management documentation. Do not be afraid to brag a bit!

• What is your educational background?
• What experience do you currently have?
• Why are you the right person to run your firm?

If there are other individuals involved, it is a good idea to insert your organizational chart here. Visuals help quickly convey information and break up otherwise blocky text.

Section Five: Services

The Services section is the heart of your law firm business model plan. It is where you dive into all aspects of your services, including:

• The problem(s) you are addressing.  What pain points do your preferred clients experience? What can they do right now to alleviate those pain points? Answer these questions, and then take the extra step to explain how those current solutions fail to adequately address their problems.
• The solution(s) you are providing.  This describes how your solutions better resolve your prospective market’s needs. This not only includes the actual work you do, but the benefits that each client will receive based on your work.
• An overview of your competition.  Describe your competition here. For instance, which other solo attorneys and firms provide the same solutions as you? What are your advantages over these competitors? What do you differently when providing your solutions? How will clients gain additional benefits by seeking out your services instead of working with your competitors?

Section 6: Marketing Strategy

Your marketing strategy section needs to address the three P’s:

• Positioning.  How will you position your law firm and your services? What will you say to present your practice in the best light? What short statements can you use to entice a potential client to pursue your services?
• Pricing.  How much will you charge? How does that fit within the legal industry? Within your niche industry? What do clients receive for that price?
• Promotion.  Which sales channels and marketing activities will you pursue to promote your practice? Who is in charge of these activities? Even if you plan to build your law firm on the basis of word-of-mouth referrals, you must remember that most referrals will still look for information about you before contacting you. Know where they will look and ensure you are there.

Section Seven: Financials

Last comes the financials section. It is the key component to your plan if you are going to seek funding to get your practice off the ground. It is imperative that you complete this section even if you are not seeking funding, however, as you need to paint a clear financial picture before opening your doors.

Two main items make up this section: budgeting and forecasting (sales and cash flow). Answer these questions to help you address these items:

• How much starting capital do you need?
• How much money will it cost to keep your practice operating on a month-to-month basis?
• How many cases will you need to close each month to break even?
• How many cases would you need to close to make a profit?
• What is your projected profit and loss for the year?

This section often incorporates graphs and other images, including profit-and-loss and cash-flow tables. The more specific you get with your numbers, the more likely you are to succeed!

One final note: If your goal is to submit your business plan to potential funders, you want to do everything you can to make sure your plan stands out. One good way to do this is to work with a designer to artfully format your plan. Great presentation can take you a long way.

Originally published 2017-09-23. Republished 2020-07-31.

Cari Twitchell

About the Author

@CariTwitchell

/in/caritwitchell/

Website: https://www.customcontentllc.com

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SNY Business Law

Behind the success of a Law firm

Understanding Employment Law: A Guide for Business Owners

Employment law governs the relationship between employers and employees, and failure to comply with its regulations can result in costly legal battles and damage to a company’s reputation. In this article, I will provide a comprehensive guide to employment law for business owners, covering key concepts, compliance requirements, and best practices. By the end of this article, you will have a solid understanding of employment law and the tools necessary to ensure your business is in compliance.

Key Concepts in Employment Law

As a business owner, it is important to understand the key concepts in employment law. Employment law refers to the legal framework that governs the relationship between employers and employees. It covers a wide range of issues, including hiring, firing, compensation, benefits, and workplace safety.

One of the first things to understand is the different types of employment relationships. There are two main types: employees and independent contractors. Employees are individuals who work for an employer and are subject to the employer’s control and direction. Independent contractors, on the other hand, are individuals who work for themselves and are hired to perform a specific task or project.

Another important concept to understand is at-will employment. At-will employment means that either the employer or the employee can terminate the employment relationship at any time, for any reason, or for no reason at all. However, there are exceptions to this rule. For example, employers cannot terminate employees for discriminatory reasons, such as race, gender, or age.

It is important to understand these key concepts in employment law in order to ensure that your business is in compliance with the law and to avoid potential legal issues down the road. In the next section, we will discuss the legal requirements for hiring employees.

Compliance with Employment Law

As a business owner, it is crucial to comply with employment law to avoid legal issues and protect your business. There are several legal requirements that you must follow when hiring and terminating employees.

Firstly, anti-discrimination laws prohibit employers from discriminating against employees based on their race, gender, age, religion, or disability. It is important to ensure that your hiring process is fair and unbiased, and that you do not discriminate against any potential employees.

Secondly, minimum wage laws require employers to pay their employees a minimum wage, which varies depending on the state and industry. It is important to ensure that you are paying your employees at least the minimum wage and keeping accurate records of their hours worked.

Thirdly, maintaining accurate employee records is crucial for compliance with employment law. You must keep records of your employees’ personal information, employment status, hours worked, and wages paid. These records must be kept for a certain period of time, depending on the state and federal laws.

Lastly, wrongful termination is a serious legal issue that can result in costly lawsuits. It is important to ensure that you have a valid reason for terminating an employee and that you follow the proper procedures for termination.

To stay compliant with employment law, it is important to conduct regular audits of your employment practices and seek legal advice when necessary. Creating an employee handbook and implementing workplace policies can also help ensure compliance and prevent legal issues.

In conclusion, compliance with employment law is essential for the success of a business. By understanding and following the legal requirements for hiring and terminating employees, business owners can avoid legal issues and protect their business.

Best Practices for Business Owners

As a business owner, it is important to not only understand employment law but also to implement best practices to ensure compliance. Here are some tips to help you stay on top of employment law:

1. Conduct regular audits: Regularly reviewing your employment practices can help you identify any potential compliance issues before they become a problem. This can include reviewing your hiring and termination procedures, employee records, and workplace policies.

2. Seek legal advice: If you are unsure about any aspect of employment law, it is always best to seek legal advice. An experienced employment law attorney can help you navigate complex legal issues and ensure that you are in compliance with all applicable laws.

3. Create an employee handbook: An employee handbook is a valuable tool for communicating your company’s policies and procedures to your employees. It can also help protect your business in the event of a legal dispute. Be sure to include policies on anti-discrimination, harassment, and other important employment issues.

4. Implement workplace policies: In addition to an employee handbook, it is important to implement workplace policies that promote a safe and respectful work environment. This can include policies on dress code, social media use, and workplace safety.

5. Stay up-to-date on changes in employment law: Employment law is constantly evolving, so it is important to stay informed about any changes that may affect your business. This can include changes to minimum wage laws, anti-discrimination laws, and other employment-related regulations.

By following these best practices, you can help ensure that your business is in compliance with employment law and create a positive work environment for your employees. For more information on employment law, be sure to consult with an experienced attorney or visit the websites of government agencies such as the Department of Labor.

In conclusion, employment law is a crucial aspect of running a successful business. As a business owner, it is important to understand the key concepts of employment law, including the different types of employment relationships and the concept of at-will employment. Compliance with employment law is also essential, and business owners must be aware of the legal requirements for hiring and terminating employees, as well as the importance of maintaining accurate employee records. To stay compliant with employment law, business owners should consider implementing workplace policies and creating an employee handbook, as well as conducting regular audits and seeking legal advice when necessary. By understanding and complying with employment law, business owners can create a positive work environment for their employees and avoid costly legal disputes.

Originally posted 2023-04-26 19:27:54.

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Employment Laws: Overview and Resources for Employers

There are many federal, state and local laws that affect the American workplace, and it is important for employers to know where to go for help in understanding their responsibilities under these laws.

The U.S. Department of Labor (DOL) administers and enforces most federal employment laws, including those covering wages and hours of work, safety and health standards, employee health and retirement benefits, and federal contracts. Several other federal agencies also administer laws affecting employment issues. For example, the U.S. Equal Employment Opportunity Commission (EEOC) enforces many of the laws ensuring nondiscrimination in the workplace, and the National Labor Relations Board (NLRB) administers the primary law governing relations between unions and employers.

Most workplace laws apply the same way to all employees, whether or not they have disabilities. However, some laws apply specifically to employees with disabilities, such as the Americans with Disabilities Act (ADA) and the Rehabilitation Act. Some laws, such as the Family and Medical Leave Act (FMLA) and state Workers' Compensation laws, apply to all employees but have disability-related implications when employees are injured or become disabled on the job.

Employment laws can be complex, and understanding and implementing them can seem very challenging , especially for small businesses. DOL and other federal agencies have numerous resources and materials that can help.

Department of Labor — DOL is committed to providing America's employers, workers, job seekers and retirees with clear and easy-to-access information on how to be in compliance with federal employment laws. This information, often referred to as "compliance assistance," is delivered through a variety of tools and resources:

• The elaws Advisors are interactive online tools designed to help employers and employees understand their rights and responsibilities under federal employment laws. Particularly useful to employers is the FirstStep Employment Law Advisor , which helps businesses and organizations decide which DOL workplace laws apply to them. FirstStep asks a series of questions and, based on the responses, generates a customized list of laws that are likely to apply and links to relevant compliance assistance resources.
• The Job Accommodation Network (JAN) is a free service sponsored by DOL's Office of Disability Employment Policy that provides information on the employment provisions of the ADA and other disability-related laws, and on specific job accommodations for people with disabilities. JAN can be contacted by calling 1- 800-526-7234 or 1-800-ADA-WORK (1-800-232-9675) (voice/TTY).
• DOL's National Call Center provides nationwide toll-free assistance to workers and employers on a full range of employment and workplace issues at 1-866-ODEP-DOL (1-866-633-7365) (1-866-633-7365) (voice) or TTY .

Equal Employment Opportunity Commission (EEOC) — The EEOC's website offers a wide range of materials for employers on preventing and addressing employment discrimination. In addition, print versions of publications can be ordered online or by calling 1-800-669-3362 (voice) or 1-800-800-3302 (TTY). EEOC resources are available in multiple languages and alternate formats.

U.S. Department of Justice (DOJ) — DOJ's Americans with Disabilities Act (ADA) Home page provides extensive ADA information and resources, including publications for businesses and links to the various agencies responsible for enforcing its different provisions.

State Resources — When researching federal employment laws, it is important to remember that many states also have their own state-specific employment laws. When state laws differ from federal laws, employees may be entitled to the greater benefit or more generous rights provided under the different parts of each law. More information is available from state labor and employment agencies .

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• Business plans are a dying art, especially in the legal profession.
• Needless to say, business plans are also essential for a lawyer’s career.
• As the adage goes, if you don't plan your career, someone else will plan it for you.

Many of you work in firms that don't have a business plan for the firm as a whole , let alone your practice group or individual attorneys. And some of you are not privy to the firm's plan, even if there is one.

• If you are interested in seeing the elements of a lateral partner business plan click here: Partner Business Plans: Key Elements

Even so, that's no reason to forgo developing a plan for yourself. Remember, if you don't plan your career, someone else will plan it for you.

Have no fear. Personal business planning is not about writing a 50-page manifesto outlining every detail of every day of your professional life for the next 10 years . In fact, personal business planning can be as simple as you want to make it, as you can see here with this sample business plan for law practice PDF . You don't even have to call it a business plan -- call it a career plan if you prefer.

No matter how simple you make it or what you call it, personal business planning is about taking inventory of where you are , determining where you want to go and building a roadmap for getting there. Once you have the plan in writing, all you have to do is revisit it periodically to check your course and make any necessary adjustments.

Also, when it comes to planning, the biggest land mines are complexity and procrastination. Try to avoid creating a plan that overwhelms you or anyone you tell about it. And remember that any plan is better than no plan at all.

Strive to keep your plan simple and start taking action. As an attorney, you're well-versed in the areas of analysis and logic. In every work matter, you look at the situation and connect the dots to accomplish the desired objective. Apply the same approach to personal business planning and the dots you connect will lead you to the career you've always wanted.

• See 30 Ways to Generate Business as an Attorney for more information.

Business Plan For A Law Firm

How do i write a business plan for a law firm, what goes into a business plan, overview of the firm.

• A mission statement about the firm’s purpose.
• A vision statement or recitation of medium- and long-term goals for the firm.
• Important aspects of the firm’s history.
• Any important philosophies that the firm brings to legal practice.

Market Analysis

Do lawyers write business plans, 1. what are your goals.

• What do I want to achieve by starting my own law firm ?
• What is the impact I want to have?
• What am I good at?
• How do I want to service my clients?
• What problems do I want to help solve?
• What does success look like after starting this law firm?

2. Consider how much revenue you will need.

3. setting your fee structure, 4. determine how many cases you need to meet that revenue goal, how to create a law firm business plan, 1. executive summary.

• Mission statement: One or two sentences describing your firm’s purpose.
• Core values: What values are most important to the firm?
• Major goals: What are your firm’s overarching goals and objectives?
• Unique selling proposition: What sets your firm apart from other firms?

2. Firm Description

• Service(s): What type of law do you practice? What types of clients do you serve?
• Firm values: Restate your mission statement and core values.
• Legal structure: What sort of business entity are you? Are you in a sole proprietorship or a limited liability partnership?
• Location: Where is the office geographically located? What areas does the firm serve?
• Unique selling proposition: What makes your firm stand out? What technology or services give your firm an edge?

3. Market Analysis

• Ideal client: What demographics (like location, age, occupation), needs, and motivations would signify the best client match for your firm, and why?
• Industry description: What is the current and projected size of the market your firm is in? What are the trends in your legal niche?
• Competitive analysis: Who are your direct and indirect competitors, and how are they serving your target market? Where do your competitors succeed? What opportunities are there for your firm?
• Projections: How much can your ideal clients spend on legal services? How much can you charge?

4. Organization and Management Overview

• Describe what makes you unique and what sets you apart from other applicants.
• If applicable, include what makes each member of your team suitable for their particular roles.
• The organizational chart is a great visual aid if you have a larger practice.

5. Services

• What problems do your potential clients need your help with?
• How can your services uniquely help your clients solve their problems?
• What is the benefit of your services to clients?
• Why would potential clients choose your firm over another firm?

6. Marketing Strategy

• Ideal client: Where would you find your ideal client?
• Marketing goals: Detail what specific outcomes you hope to accomplish through marketing. Goals should include tactical objectives (more clients? Higher billing rates?) and overall objectives (like increased name recognition).
• Unique selling proposition: Restate what sets you apart and makes you uniquely able to best serve your clients.
• Competition: Detail who your competition is—and what they are doing to gain clients. Analyze their marketing strategies and assess where the cost of your services fits in with your competitors.
• Action plan: List the specific actions your firm will take to reach your target market and achieve your marketing goals (this could include a media/advertising strategy).

7. Financial Plan

• Revenue goal: How much money you want to make broken down by month.
• Financial projections: What you will really expect to earn, how many cases you think you will have the capacity to take on, and what you will be charging each client each month.
• Budget: A breakdown of your expenses and what your money will be going towards each month.
• Cash flow statement: What you actually earned and spent each month. This is different from your projections and budget and should be updated as the year progresses. You will find that you may have budgeted for something that cost you much less than you originally thought or made more in a month than you projected, these discrepancies should be recorded in your cash flow statement.

8. Start-Up Budget

• Hardware (laptops, printers, scanners, office furniture, etc.)
• Office space (Will you rent, or work from home?)
• Malpractice insurance
• Staff salaries (Are you planning to hire an administrative assistant or paralegal?)
• Utilities (Phone, internet, etc.)
• Practice management software or other technology services
• Partner Business Plans: Key Elements
• You Need to be Self-Managing and Responsible
• The Importance of Finding and Creating Demand
• The Importance of Asking the Right Questions, Self Improvement and Perception
• Attorney Business Plan Sample 1
• Attorney Business Plan Sample 2
• Attorney Business Plan Sample 3
• Attorney Business Plan Sample 4
• Attorney Business Plan Sample 5
• Attorney Business Plan Sample 6
• Attorney Business Plan Sample 7

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Harrison Barnes does a weekly free webinar with live Q&A for attorneys and law students each Wednesday at 10:00 am PST. You can attend anonymously and ask questions about your career, this article, or any other legal career-related topics. You can sign up for the weekly webinar here: Register on Zoom

Harrison also does a weekly free webinar with live Q&A for law firms, companies, and others who hire attorneys each Wednesday at 10:00 am PST. You can sign up for the weekly webinar here: Register on Zoom

You can browse a list of past webinars here: Webinar Replays

You can also listen to Harrison Barnes Podcasts here: Attorney Career Advice Podcasts

You can also read Harrison Barnes' articles and books here: Harrison's Perspectives

Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.

Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.

To read more career and life advice articles visit Harrison's personal blog.

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Business law basics for HR: 8 things every HR professional needs to know

The constitutional basics of business law

We are a nation of laws and every organization — whether for-profit, non-profit or governmental — must follow those laws. Laws flow from our founding documents — first and foremost the U.S. Constitution. Here are some of the Constitutional protections and provisions that apply to businesses.

• Commerce clause. Article I, Section 8, Clause 3 gives Congress the “power to regulate Commerce with foreign Nations, and among the several States…” It is that power that allows Congress to pass laws outlawing discrimination in employment, for example. Title VII (The Civil Rights Act) was passed under the Commerce Clause. So was the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA).
• Fifth Amendment. Among the provisions that apply to employers are that no person may be “deprived of life, liberty of property, without due process of law.” Because the U.S. Supreme Court has found that the definition of “person” includes corporations, those protections apply to businesses too. The amendment is the basis, for example, for a public employee to require “some sort of a hearing” before being fired. It is also the basis for an employer’s right to run its business without fear government will shut it down without compensation and due process.
• Fourteenth Amendment. The Constitution also guarantees the right to freedom of contract. It upholds the common law rights of individuals and organizations to enter freely into contracts, subject to legislative restrictions passed under other sections of the Constitution. This includes the right to enter into an employment contract. The most common form is the at-will employment contract.

Basic federal employment laws

Based largely on the Commerce Clause, Congress has passed expansive federal laws regulating how employers may operate. These include dozens of employment discrimination and wage and hour laws. Congress has also delegated to various federal agencies’ enforcement authority. These agencies in turn can create regulations that have the full force of laws. As long as regulations are consistent with the laws upon which they are based, they are binding.

Some federal employment laws passed under the Commerce Clause that can impact business law and HR include:

• Fair Labor Standards Act, which sets the federal minimum wage and overtime rules .
• National Labor Relations Act, which sets the rules for unionization and protects the right of workers to agitate for better conditions.
• Civil Rights Act of 1964, which bars employment discrimination based on race, religion, color, sex, and national origin.
• Americans with Disabilities Act, which bars discrimination based on disability.
• Pregnancy Discrimination Act, which bars pregnancy discrimination.
• Equal Pay Act, which requires equal pay for equal work.
• Family and Medical Leave Act, which provides job-protected unpaid leave.
• Genetic Information Nondiscrimination Act, which bars discrimination based on genetic information.
• Uniformed Services Employment and Reemployment Rights Act (USERRA), which bars discrimination based on military service.
• Age Discrimination in Employment Act, which bars age discrimination.

Which agencies’ regulations apply to HR

Three key federal administrative agencies impact human resource management.

• The U.S. Department of Labor (DOL).
• The Equal Employment Opportunity Commission (EEOC).
• The National Labor Relations Board (NLRB).

Each of these agencies is responsible for enforcing one or more federal employment laws. Each also has authority under those laws to issue regulations as well as other guidance. These agencies issue regulations through a long process that includes seeking input, putting proposed regulations out for comment, and then issuing final regulations. The process may take from a few months to a year or more.

In addition to regulations, the agencies provide other HR and business law guidance. For example, DOL regularly publishes opinion letters answering questions it has received. Those opinion letters provide employers and workers with the DOL’s view of a law or regulation. Recently, the EEOC announced it would begin issuing opinion letters too.

Both the EEOC and DOL also publish frequently asked questions (FAQs) to help employers facing tricky questions.

How contracts form

Each state has its own contracting laws, though almost all are based on common law contract basics. There are four elements to a basic contract; agreement, consideration, legality, and capacity. All four elements must be present to establish a valid, enforceable contract.

A contract is formed when:

• One party makes an offer and the second party accepts that offer. This forms an agreement.
• For there to be an agreement, there must also be an exchange of “consideration.” This often involves exchanging money for a service or product. But it may also be a promise for a promise. The exchange must always be something of value. When, for example, an employer hires a worker to perform a job, both parties make an exchange. In this example, the worker promises to trade her time and labor in exchange for wages and perhaps benefits.
• The subject matter of the contract must also be legal. There can be no valid contract, for example, for the delivery of heroin in exchange for cash. Nor can a worker and an employer agree that the worker’s wages will be less than minimum wage.
• Finally, all parties to the contract must have the capacity to enter into a contract. For example, a child of ten could not enter into a contract to work for an employer. He does not have the legal capacity to do so.

Preserving at-will employment status

In the United States, the default employer/worker relationship is at-will. At-will is the presumed relationship between the employer and the worker. In at-will employment either party can end the arrangement at any time. The worker is free to quit. The employer is free to stop offering work. Neither needs a reason for walking away. However, the employer cannot end the agreement for an illegal reason. For example, the employer could not fire the worker because she’s pregnant. It could, however, dismiss the worker because there’s no work or even because the worker wore an orange shirt today.

Employers have to make sure that at-will status isn’t accidentally changed. Do this by reminding workers that employment with your organization is governed by at-will status.

Reminders can come in the form of:

• Disclaimers in the employee handbook . Have each employee sign the disclaimer.
• Training for managers and supervisors. Remind them that they are not authorized to offer other terms of employment.
• A strong at-will statement prominently displayed that makes clear only the CEO or owner can agree to another status.

Understand non-disclosure or non-compete agreements

Sometimes, an employer might want to bind an employee to terms during and after employment. This is common for many high-level positions, especially where the employee will have access to proprietary information. These may include trade secrets, customer lists, secret formulas, or other important business assets that give the employer a competitive edge. To bind the employee, the employer must create something other than an at-will contract. Typically, non-disclosure agreements will include terms both parties have to follow to terminate the contract. It may include penalties for early termination or penalties for breaching secrecy.

Employment contracts may also include a non-compete clause. This prevents the employee from going to a competitor or entering into competition with the employer. These agreements are frequently regulated at the state level. Some states allow expansive non-compete terms. Others are more restrictive. For example, the District of Columbia just passed a strict law limiting non-compete contract terms. When it goes into effect, it will prohibit all DC employers from requiring or requesting employees to sign any agreement containing a non-compete provision.

Remember arbitration agreements are contracts

Some employers want to avoid the time, risk, and expense of litigating employment disputes in state or federal courts. One way to do so is with an arbitration agreement. By agreeing ahead of time to let a neutral arbitrator handle disputes, complaints can quickly be resolved out of court.

Arbitration agreements are contracts and must meet the basic contract formation rules outlined above. Most are offered through several national arbitration associations and include standard language. Before implementing one, though, have your counsel review the terms. You must also keep the agreement separate from your employee handbook . That’s because you don’t want the handbook to create a contract. Under current business law, that would prevent your organization from making changes to it as you see fit.

Severance agreements have special rules

Sometimes, you may want to end the employment relationship on good terms. One way is with a severance agreement that pays the employee at least a token amount at departure. Employers typically condition receiving the extra payment on a promise not to sue. The severance agreement then becomes a contract banning a subsequent lawsuit. If you merely make the payment without the promise, the employee can still sue.

For some employees, a release in exchange for a severance payment must follow strict rules. For example, for those employees over age 40, you must comply with the Older Workers’ Benefit Protection Act (OWBPA). This federal law gives workers time to consult counsel and review the offer before accepting or rejecting it. Get your counsel to approve the language.

Additional Resource: Employee handbooks should be a valuable tool, not a legal liability. Consider updating your handbook with recommended sample language to keep you out of legal trouble .

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13 Employment Law

13.1 introduction, learning objectives.

• Understand the principle of employment at will and the exceptions to the doctrine.
• Learn important employment laws that affect businesses across industries.
• Examine the laws that govern the relationship between employers and employees who belong to a union.

Until the early Twentieth Century, there were not many laws that regulated the employer-employee relationship. The belief was that the free market system would ensure that employers treat employees fairly or else they would not be able to attract and keep good workers. However, the reality of the Industrial Revolution proved that the traditional employment relationship favored the interests of the employers at the expense of workers, including children. As a result, Congress and state legislatures started passing employment and labor laws to protect the interests of employees. Today, employment law is a very robust area of the law that impacts businesses across industries.

13.2 Employment At Will

In general, employees are free to quit a job at any time for any reason, with or without notice. Similarly, employers are free to end a worker’s employment at any time for any reason, with or without notice. This principle is called  employment at will . This doctrine is based on the concept that employment is a form of an implied contractual relationship. Therefore, as long as both parties want to continue their contract to work together, the law presumes they will. When one party does not want to continue, then they may end their working relationship.

There are five major exceptions to the employment at will doctrine:

• Good cause;
• Discrimination against an employee based on membership in a protected class;
• Violation of public policy; and
• Whistleblowing.

Figure 13.1 Exceptions to the Employment at Will Doctrine

Employers and employees may modify the employment at will doctrine through contract. In addition to formal, written employment contracts, courts have also enforced oral promises made during the hiring process. Promises made to job applicants are generally enforceable, even when the promises are not approved by the employer’s executives or upper management. Therefore, it is important when hiring employees that companies do not make promises that can be reasonably interpreted to be guaranteed employment or employment for a certain period of time.

Employee handbooks also may create implied contracts that modify the employment at will doctrine. Often handbooks state that the company follows a progressive discipline policy and that employees may only be fired for “just cause” or after receiving warnings, notice, hearing, or other procedures. Policies such as this create an implied contract that require businesses to follow the progressive discipline policy before terminating a worker’s employment, in absence of good cause.

The definition of “good cause” for terminating the employment of a worker varies from state to state. And businesses often define “good cause” in their policies. However, most states recognize the following as good cause to fire an employee without going through progressive discipline first:

• Damage to company property;
• Being under the influence of illegal drugs or alcohol at work;
• Threats against other employees or customers;
• Domestic violence;
• Having weapons on premises;
• Unethical behavior; and
• Willful or malicious misbehavior.

Poor performance also constitutes good cause for firing an employee. Employers need to be careful, however, to document the performance issues and to engage in progressive discipline when appropriate. If an employee has not been counseled that their performance is unsatisfactory, then the employee is more likely to bring a charge of wrongful discharge against the employer. Courts are more likely to rule that poor performance constitutes good cause when an employee has notice of the performance issue(s) and has a reasonable opportunity to fix them.

Discrimination Against a Protected Class Member

Anti-discrimination laws make it illegal to take adverse actions against a member of a protected class based on their membership in the class. A protected class is a group of people who are protected by laws that prohibit discrimination based on a personal characteristic, such as race, color, religion, gender, national origin, age or disability.

As discussed in Chapter 14, adverse actions include failure to hire, failure to promote, demotion, and termination of employment. That is not to say that someone who is a member of a protected class may never be fired. Rather, it is illegal to fire them because of their race, color, religion, gender, national origin, age or disability.

Violation of Public Policy

The public policy exception occurs when an employee is fired for:

• Refusing to perform an action that violates a law or public policy; or
• For exercising a legal right or advancing a public policy.

In other words, an employee can’t be fired for refusing to do something illegal or doing something legal that the employer does not want done. For example, an employee cannot be fired for not falsifying reports, for refusing to testify falsely in court, for filing a workers’ compensation claim, or for serving on a jury.

Whistleblowing

A  whistleblower is an employee who reports the employer’s illegal behavior to a governmental or law enforcement agency. Many different laws have whistleblower provisions that encourage people who have knowledge of illegal activity to report it without fear of retribution or losing their jobs. Whistleblower protections apply to good faith reports of wrongdoing, even if it turns out that the activity is not illegal. However, whistleblower protection does not usually protect employees who make reports that they either know, or should have known, do not include illegal activity.

13.3 Common Employment Law Torts

Employees may assert various tort claims against their employers. Tort claims are often decided on the basis of generalized duties of care rather than specific types of conduct prohibited by law. Tort claims vary state to state but most states recognize the following claims between employers and employees:

• Negligent hiring, retention, and supervision;
• Negligent investigation;
• Negligent infliction of emotional distress;
• Intentional infliction of emotional distress (also called outrageous conduct);
• Tortious interference with contract and/or prospective business advantage;
• Defamation (libel and slander);
• Invasion of privacy; and

Torts are discussed in more detail in Chapter 9. However, it is important for businesses to understand that they owe their employees and managers a duty of care. If they violate that duty, then they may be subject to legal liability.

13.4 Wage and Hour Laws

The Fair Labor Standards Act (FLSA) is a federal law that was passed in 1938 that nationalized standards for pay, record keeping and child labor for businesses with two or more employees that engage in interstate commerce. The FLSA prohibits “oppressive child labor,” which means that children under fourteen cannot work unless it is a family business, babysitting, newspaper delivery, entertainment, or agriculture. Fourteen and fifteen year olds are permitted to work limited hours after school in nonhazardous jobs, such as retail and restaurants. Sixteen and seventeen year olds may work unlimited hours in nonhazardous jobs.

Figure 13.2 FLSA Facts

The FLSA also provides for a national minimum wage and a standard forty hour work week. Under the FLSA, an employee who works more than forty hours is entitled to overtime pay. However, the Act provides exemptions to the overtime requirement. Employees who earn more than a certain amount and perform specific types of work are not entitled to overtime pay.

Figure 13.3 Overtime under the FLSA

The Department of Labor (DOL) is charged with enforcing the FLSA and other federal wage and hour laws. As a general rule, federal wage and hour laws do not preempt state and local laws. Therefore, employers must comply with federal, state, and local laws regarding employees’ wages. Many state and local governments have set a higher minimum wage than is required federally. Therefore, businesses must ensure that they comply with all wage and hour laws applicable to them.

13.5 Family Medical Leave Act

The Family Medical Leave Act of 1993 (FMLA) is a federal law that guarantees employees up to twelve weeks of unpaid leave each year for childbirth, adoption, or a serious health condition of their own or their immediate family member. Under the FMLA, a qualifying family member is a spouse, child, or parent. Siblings, grandchildren, and in-laws are not usually qualifying family members. The FMLA applies to businesses with at least fifty workers that engage in interstate commerce.

Figure 13.4 FMLA

An employee must work for the company for at least one year before being eligible to take leave under the FMLA. The Act requires that employees who take leave be allowed to return to the same or equivalent job with the same pay and benefits.

What constitutes a “serious health condition” is a heavily litigated issue. In general, a serious health condition requires continued treatment by a health provider and results in at least three days of incapacitation. Sometimes this aligns with recognized disabilities but it does not always. Also, a condition such as migraines may incapacitate people to varying degrees. To avoid legal liability, businesses should request appropriate documentation from medical providers rather than relying on a subjective determination of what constitutes serious health conditions.

13.6 Occupational Safety and Health Act

In a heavily industrialized society, workplace safety is a major concern. To that end, Congress passed the Occupational Safety and Health Act (OSHA) in 1970. The Act requires employers to provide a workplace that is free from recognized hazards likely to cause death or serious physical harm to employees.

Employers must comply with specific health and safety standards for their industry. For example, standards for restaurants differ from standards for health care providers or those for the mining industry. Employers must also keep records of all workplace injuries and accidents, and under some circumstances must automatically report them to the government. Employees may also report violations.

The Occupational Safety and Health Administration (also known as OSHA) is an agency within the Department of Labor that is responsible for enforcing the Act. The Agency may inspect workplaces to ensure they are safe and impose fines for violations of the Act. The Act also provides for criminal penalties when the violations are willful.

Figure 13.5 Common OSHA Violations

States and local governments also have a variety of health and safety laws and regulations. Therefore, businesses must ensure that they comply with all laws applicable to them.

13.7 Employee Retirement Income Security Act

In 1974, Congress passed the Employee Retirement Income Security Act (ERISA) to regulate employer-sponsored pension plans. ERISA requires employers disclose a large amount of information regarding the funding and vesting of pension plans. This Act was in response to fraudulent handling of pension plans that deprived employees of savings at the time of their retirement.

ERISA also applies to employer-sponsored medical, disability, and welfare benefit programs. Although the Act does not require employers to provide these types of benefits to their employees, if employers choose to do so, ERISA regulates what types of information employees are entitled to, along with their enforcement rights under the plans.

Figure 13.6 ERISA Areas of Regulation

13.8 Workers’ Compensation Laws

Workers’ compensation laws provide payment to employees for injuries incurred at work. In essence, workers’ compensation is a type of no-fault insurance system that every state has. The intent of these laws is to provide quick and efficient delivery of disability and medical benefits to injured workers at a reasonable cost to employers.

Figure 13.7 Workers’ Compensation

Workers’ compensation is the exclusive remedy for injury claims. In other words, if an employee makes a workers’ compensation claim, he or she may not sue the employer for his or her injury. The amounts provided for medical expenses and lost wages are often lower than an employee may receive in a successful lawsuit. However, the employee benefits from receiving payment upfront and does not have to risk the uncertain outcome of a lawsuit or pay attorney fees associated with litigation.

There are two exceptions to the exclusive remedy doctrine:

• Intentional actions resulting in harm; and
• Product liability claims against a manufacturer of a defective product.

State law varies with respect to types of workers who are excluded from coverage, as well as types and amount of compensation. All states cover medical costs, rehabilitation costs, and lost wages and benefits as a result of the injury.

In general, an employee may recover workers’ compensation benefits when:

• The employer has complied with the state’s legal requirements;
• The employee was acting in the course of his or her employment when injured;
• The injury was proximately caused by his or her employment (i.e. the injury was not caused by off work activities); and
• The employee did not intentionally injure himself or herself.

An employer may not retaliate against an employee who files a workers’ compensation claim.

13.9 Unemployment Compensation

Every state provides an unemployment compensation insurance program that is funded by a tax paid by employers. To draw from the program, an employee must:

• Have worked for the employer for a certain amount of time;
• Not have quit without good cause;
• Not have been fired for egregious behavior;
• Be capable of work; and
• Actively look for a new job.

Unemployment compensation is meant to help workers who are subject to lay offs and reductions in force while they look for new employment. It is generally not available to employees who voluntarily leave a job and want to continue receiving income from their former employer.

States have different formulas for calculating unemployment compensation, but in general benefits are a percentage of past earnings and are available for a limited period of time.

13.10 Labor Relations

Labor law affects the working relationship of employees who are represented by a union in their workplace. A  union is an organization formed to negotiate with employers, on behalf of workers collectively, about job-related issues such as salary, benefits, hours, and working conditions. Labor law essentially creates a framework for employers, employees, and unions to create a contract unique to that business for the purpose of regulating the employment relationship and resolving disputes.

National Labor Relations Act

The first unions in the United States were formed after the Civil War and began to flourish during the Industrial Revolution. In 1935, Congress enacted the National Labor Relations Act (NLRA) to provide workers three important rights:

• The right to organize;
• The right to collectively bargain; and
• The right to strike.

The NLRA also prohibits employers and unions from engaging in unfair labor practices . Unfair labor practices by employers include:

• Interfering with protected employee rights, such as the right to self-organize;
• Discriminating against employees for union-related activities;
• Retaliating against employees who invoke their labor rights;
• Refusing to engage in collective bargaining;
• Interfering with the administration of a union; and
• Discouraging employees from forming or joining a union.

Unfair labor practices by unions include:

• Causing an employer to discriminate against an employee who is not a union member;
• Engaging in an illegal strike or boycott;
• Requiring an employer to hire more employees than necessary (called featherbedding );
• Coordinating a secondary boycott (an action against a third party who deals with the employer but has no direct contact with the union);
• Refusing to engage in collective bargaining; and
• Charging excessive dues.

Most states also have laws that make it illegal for an employer to mandate union membership as a condition of employment.

The NLRA also states that supervisors are not employees and do not have a right to join a union.  Supervisors are individuals with the authority to make independent decisions on hiring, firing, disciplining, or promoting other employees.

Under the NLRA, a validly recognized union is the exclusive representative of the employees. This means that the union represents all the employees, even if a particular worker is not a member of the union or has not paid dues. The employer may not bargain directly either with employees or with another organization representing the employees.

Unions have a  duty of fair representation , which requires unions to treat all members fairly, impartially, and in good faith. A union may not favor some members over others and may not discriminate against members based on their membership in a protected class, such as race or gender.

Organizing a Union

A union trying to represent employees follows these steps:

Figure 13.8 Process of Union Organizing

Collective Bargaining

Once a union is formed, the employer and union must negotiate to create a new employment contract that regulates employment conditions called a collective bargaining agreement (CBA) . The  bargaining unit is a group of employees authorized to engage in collective bargaining on behalf of all of the employees of a company or an industry sector.

The NLRA allows the parties to bargain almost any subject they wish but it  requires them to bargain wages, hours, and other terms and conditions of employment. Conditions of employment include:

• Retirement benefits;
• Order of layoffs and recalls;
• Production quotas;
• Work rules, such as safety practices; and
• Onsite food service and prices.

The parties are not required to reach an agreement but they are required to bargain in good faith. In other words, they must meet with open minds and make a reasonable effort to reach a contract.

Concerted Activity

Concerted activity is an action by employees concerning wages or working conditions. It is action taken by members of a union to gain a bargaining advantage. Concerted activity is protected by the NLRA and cannot be used as a basis for disciplining or discharging an employee.

The most common forms of concerted activity are strikes and picketing. A strike is an organized cessation or slowdown of work by employees to compel the employer to meet the employees’ demands. The NLRA protects the employees’ right to strike when:

• The parties are unable to reach a CBA;
• The employer engages in an unfair labor practice; or
• The employer is considering sending work elsewhere.

However, a strike is illegal when:

• The union does not provide the employer with sixty days notice (when issue is modifying or terminating a CBA);
• The union represents public employees;
• The union engages in a  sit-down strike , in which employees stop working but physically block replacement workers from taking their places; and
• The union engages in  partial strikes , in which employees strike intermittently to disrupt operations but prevent the employer from hiring replacement workers.

When unions go on strike, employers have the right to hire replacement workers to keep the business operating. If the union engages in an  economic strike to obtain increased wages and benefits, the employer may hire permanent replacement workers. When an economic strike ends, the employer is under no obligation to lay off replacement workers to allow strikers to return to work. However, if and when the employer hires additional employees, it may not discriminate against the employees who went on strike. If the union engages in an  unfair labor practices strike to protest an employer’s unfair labor practice, union members are entitled to their jobs after the strike ends.

Picketing is the demonstration by one or more employees outside a business to protest its activities or policies and to pressure it to meet the protesters’ demands. The power of picketing is to publicize a labor dispute and influence the public to withhold business from the employer. Picketing is usually lawful, as long as the picketers do not prevent other employees, replacement workers, or customers from entering the business.

Employers have their own form of legal pressure on union members called a lockout. A  lockout occurs when an employer closes a business or prevents workers from entering the premises and earning their paychecks because of a labor dispute. By withholding work and wages, the employer tries to pressure the union to bargain less aggressively. Most lockouts are legal.

Grievance Procedure

One of the main benefits to union members is that they are able to participate in a grievance procedure when issues at work exist. A grievance is a formal employee complaint about a violation of a workplace policy or the collective bargaining agreement between the union and employer.

Figure 13.9 Grievance Procedure

The  grievance procedure defines the rules and process for documenting, presenting, and resolving workplace disputes. The exact steps are usually defined in the collective bargaining agreement. However, most grievance procedures start with a discussion between the employee and his or her manager, often with a union representative present. Issues often are resolved informally at this step.

If the issue is not resolved, then the employee may write a formal grievance, which is then sent to management. After receiving a written grievance, management of the company investigates and discusses how to address the issues contained in the grievance. This process often involves the human resource department, union representatives, and consultation with legal counsel.

Management will then issue a written decision. If the union is not satisfied with the company’s response, it may decide to refer the grievance to the national union. If the national union decides to pursue the issue further, then arbitration before the NLRB or a private arbitrator often occurs.

13.11 Concluding Thoughts

Employment and labor laws regulate the employer-employee relationship. Although most laws are written to provide rights to employees, the laws try to balance the need of employers to run a profitable business with the right of employees to fair treatment. While the law does not always strike the right balance, it is helpful to understand that employers retain a lot of control in their day-to-day business operations and in establishing the business culture.

Fundamentals of Business Law Copyright © 2020 by Melissa Randall is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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A Roadmap for Responsible Business Conduct

Three years ago, a Dalit woman was murdered by her supervisor at a garment factory in India. Her co-workers did not wait for the company to respond. They organized collectively and engaged major global fashion companies, developing an enforceable agreement between the buying companies, the factories and their trade union to identify, remedy and prevent gender-based violence and harassment in their workplaces.

Known as the Dindigul agreement , the initiative established independent monitoring entities and trained female shop floor monitors with special retaliation protections to take immediate action on cases of gender-based violence and harassment. The agreement ensured that there were trusted and reliable grievance mechanisms in place. It also held companies accountable to resolving issues and providing workers access to remedy.

By 2026, companies are projected to spend over $27 billion a year on voluntary social audits to report on labor abuses in their supply chains. Yet, no audit would have stopped the tragedy in India. And in 2013, the Rana Plaza factory collapsed in Bangladesh , killing over 1,100 workers – days after an audit found no problems in the building. Voluntary third-party audits have all too often shown their limitations.

We believe businesses can and must do better. That’s why we’ve released the Responsible Business Conduct and Labor Rights InfoHub , a one-stop shop for information, guidance and tools from the U.S. government and international organizations to support the private sector in integrating labor rights and responsible business practices in their operations and across their global supply chains.

This comes as part of the U.S. government’s second National Action Plan on Responsible Business Conduct, founded on the Biden-Harris administration’s bedrock belief that businesses can have success while doing good, and that governments should create the conditions for responsible business conduct to take place.

The InfoHub provides companies with the knowledge and tools they need to comply with federal statutes, agency rules and trade provisions around responsible business and labor rights. It also makes government reports and advisories easily accessible, so businesses can stay up to date on emerging risks in priority sectors.

The site complements existing due diligence tools the Bureau of International Labor Affairs has created, such as Comply Chain and our List of Goods Produced by Child Labor or Forced Labor . The InfoHub also builds upon ILAB’s commitment to amplifying worker voice as a critical component of worker-centered due diligence.

We urge all stakeholders — from civil society to the C-suite — to use these resources, tools and legal standards to engage in meaningful action, strengthen their due diligence and ensure workers in their supply chains can exercise their internationally recognized rights without fear of retaliation.

We are entering a new era of corporate compliance, one where binding commitments to support worker voice, as we see in the Dindigul agreement, emerge as powerful and viable tools. The businesses at the top of global supply chains have the power to make these agreements widespread and effective and to ensure that workers are at the center of these new processes and institutions. This requires not just standing up new processes to map and track impacts within supply chains, but on concrete, positive outcomes for workers. It requires not just setting up hotlines, apps or suggestion boxes for workers but respecting their rights to organize and bargain collectively.

Through the Responsible Business Conduct and Labor Rights InfoHub and other resources, the U.S. Department of Labor is providing companies with the tools to chart a path forward on meaningful due diligence and bolster the rights and protections of all workers.

Thea Lee is the deputy undersecretary for international affairs at the U.S. Department of Labor. Follow ILAB on X/Twitter at @ILAB_DOL and on LinkedIn .

• Bureau of International Labor Affairs (ILAB)
• supply chains
• labor rights
• Responsible Business Conduct

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California Employment Law Update

Proposed “right to disconnect” law could end those after-hours emails from your boss.

With the sweeping presence of technology today, the boundary between work life and home life has become increasingly blurred. A new bill recently introduced to the California legislature seeks to change that by protecting employees’ “right to disconnect.”   

Assembly Bill 2751, introduced by Assemblyman Matt Haney (D-San Francisco), proposes to add a Section 1198.2 to the Labor Code that would effectively prevent employers from contacting employees outside of working hours, with limited exceptions.

Specifically, the proposed law would require private and public employers to establish a workplace policy that provides employees the “right to disconnect” from communications from the employer during nonworking hours, which must be established by written agreement. The “right to disconnect” means that an employee has the right to ignore communications from the employer during the agreed-upon nonworking hours.

The bill creates two limited exceptions that allow the employer to contact the employee during nonworking hours: (1) an emergency (defined as an “unforeseen situation that threatens an employee, customer, or the public; disrupts or shuts down operations; or causes physical or environmental damage”) or (2) a change to the employee’s schedule that happens within 24 hours of the scheduled shift.

If an employer commits three or more violations of the “right to disconnect,” this is considered a “pattern of violation” that allows the employee to file a complaint with the Labor Commissioner, punishable by a civil penalty of $100.

If the bill passes in the Legislature, it will head to Governor Newsom’s desk for signature and could become effective in January 2025.  If signed into law, it undoubtedly will have a significant impact on California employers across a variety of industries. For example, certain client-service industries where employees are typically expected to remain “on-call” after normal business hours would need to come to a mutual agreement with their employees regarding their nonworking hours. Employers should therefore keep a close eye on this bill.

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An employment lawyer explains the 3 things you should do the moment you're put on a PIP

• Craig Levey is an employment law attorney of over 12 years.
• He says that PIPs are often used by companies to "paper the file"  once they've already decided to fire the employee. 
• If put on a PIP, you should read it carefully, consider if it's reasonable, and decide how to respond.

This as-told-to essay is based on a conversation with Craig Levey, an employment law attorney and partner at Bennett & Belfort, P.C., a law firm based in Cambridge, Massachusetts. The following has been edited for length and clarity.

In my experience as an employment law attorney of 12 years, performance-improvement plans, or PIPs, result in termination in most cases. While there are circumstances where an employee survives the PIP and keeps working there, those situations are rare.

Many companies use PIPs to paper the file; they document the areas in which this employee is deficient, and then once the PIP is over — or sometimes even sooner — they terminate the employee and say, "As we outlined in the PIP, things weren't going well in certain areas. We don't feel like you've improved, so we're going to part ways with you."

PIPs are a tool for companies to prevent litigation, too, because then they can argue that they didn't terminate the employee because of discrimination, retaliation, or sexual harassment but rather because of performance.

When an employee receives a PIP , there are three steps that I suggest that they follow.

1. Read the PIP very carefully

Many people are so shocked that they receive a PIP that they don't actually take the time to take a deep breath, sit down, and read it.

You want to fully understand the language that's in the PIP and what the expectations are. If you need clarification because there's not enough information, you should go back and ask your company your questions and see if they offer support, such as one-on-one meetings with your supervisor.

2. Decide if the PIP is reasonable

Once you've read the PIP, ask yourself, is this PIP designed for me to fail, or is it reasonable?

A good PIP should be very clear about the areas where the employee is supposedly deficient. In a reasonable timeframe, it should spell out how that employee will get better and offer support such as regular meetings with their supervisor.

A bad PIP is very short and doesn't articulate the areas in which the employee needs to get better, so the employee is left confused and doesn't know what is being asked of them. There either isn't a timeframe given, or the timeframe is unreasonable, and no support is offered to help the employee improve.

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After receiving a bad PIP, the employee walks away confused or feeling unreasonable. Typically, when an employee receives a bad PIP, it means the company doesn't want them to improve. It's just a tool to pave the way for the termination.

3. Decide whether to respond

If, after reading your PIP, you feel it's actually pretty reasonable and you can satisfy the requirements in the time allotted, you don't need to respond. Just move on and focus on working on what's needed and satisfying the requirements laid out.

But sometimes, there are unfair PIPs with requirements that even the best employee in the world could never satisfy. If the PIP is unrealistic or unreasonable, then you need to respond.

If you decide to respond, email your supervisor or HR and spell out why it is unreasonable. Perhaps the timeframe is not long enough, or the expectations are unattainable, or the company isn't offering any support.

By spelling out the ways the PIP is unreasonable, it can protect your interests a bit in the event that you are later terminated.

Is the PIP retaliatory?

You should also think about whether the PIP is retaliatory. A lot of companies will issue a PIP in retaliation for the employee complaining about something illegal going on in the workplace or taking leave for disabilities or pregnancy, which is protected under the Family and Medical Leave Act (FMLA) .

Leave is there for a reason. If you have a disability, if you have mental health issues, or if you're pregnant, then you need to use your leave options because that's precisely what they're there for.

Unfortunately, I see all the time that companies perceive employees who take leave to be a burden. Companies don't like when they have somebody out of work and they have to satisfy those duties, either by hiring somebody to fill in or asking somebody else to take on those duties.

This happens far too often across the US. When you look at other countries around the world — how they value leave and how much time off they give people — there's more emphasis on quality of life rather than the American way, which is focused on the "grind." American companies put so much more emphasis on the bottom line and making money and less on employee well-being.

If you believe your PIP is due to your company retaliating against you, then you can respond in writing; articulate what you believe the PIP is in retaliation for, and spell out the illegal conduct. Keep a copy of that email so that in the event that you do get terminated in the future, you're preserving the record for purposes of litigation.

When I'm speaking with clients, I look at the full picture because, in many cases, I see a situation where an employee was a strong performer for many years and received good performance evaluations, but then they complained about something illegal or took protected medical leave and all of a sudden they received the PIP.

To me, that doesn't add up. You don't just suddenly become a bad performer when you have a documented history of strong performance reviews.

It's better for companies to work with employees rather than use PIPs

My philosophy is that it's better for supervisors to sit down, talk to the employee, and sort of nip issues in the bud as soon as they recognize potential areas of deficiencies and deal with them right away rather than letting things fester.

Most companies have already decided to terminate the employee by the time they get to a PIP. If I were running a business, I wouldn't issue a PIP. I would just sit down with the employee once or twice and genuinely explain how I wanted them to get better. You can still have a paper trail by sending a follow-up email outlining what was discussed and areas for improvement.

The mindset around PIPs should change. Companies should want their employees to improve, and they should deal with problems early on rather than just issuing PIPs at the end of the employment and then terminating.

If companies are issuing PIPs , they should be implemented or issued only once the supervisors have already spoken to the employees about these issues. PIPs should be genuine, clear, and articulate what they want the employee to improve upon. They should give employees the opportunity to improve. I don't think companies should use PIPs for the sake of trying to protect themselves from potential future issues.

If you've been put on a PIP or put someone on a PIP and would like to share your story, email Jane Zhang at [email protected] .

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 Mikoyan Gurevich MiG 3 172IAP For the Party of Bolsheviks with Nikolai Sheyenko May 1942 01

Mikoyan-Gurevich MiG-3

National origin:- Soviet Union Role:- Fighter Interceptor Manufacturer:- Mikoyan-Gurevich Designer:- First flight:- 29th October 1940 Introduction:- 1941 Status:- Retired 1945 Produced:- 1940-1941 Number built:- 3,422 Primary users:- Soviet Air Forces (VVS); Soviet Air Defence Forces (PVO); Soviet Naval Aviation Developed from:- Mikoyan-Gurevich MiG-1 Variants:- Mikoyan-Gurevich I-211 Operational history MiG-3s were delivered to frontline fighter regiments beginning in the spring of 1941 and were a handful for pilots accustomed to the lower-performance and docile Polikarpov I-152 and I-153 biplanes and the Polikarpov I-16 monoplane. It remained tricky and demanding to fly even after the extensive improvements made over the MiG-1. Many fighter regiments had not kept pace in training pilots to handle the MiG and the rapid pace of deliveries resulted in many units having more MiGs than trained pilots during the German invasion. By 1 June 1941, 1,029 MIG-3s were on strength, but there were only 494 trained pilots. In contrast to the untrained pilots of the 31st Fighter Regiment, those of the 4th Fighter Regiment were able to claim three German high-altitude reconnaissance aircraft shot down before war broke out in June 1941. However high-altitude combat of this sort was to prove to be uncommon on the Eastern Front where most air-to-air engagements were at altitudes well below 5,000 metres (16,000 ft). At these altitudes the MiG-3 was outclassed by the Bf 109 in all respects, and even by other new Soviet fighters such as the Yakovlev Yak-1. Furthermore, the shortage of ground-attack aircraft in 1941 forced it into that role as well, for which it was totally unsuited. Pilot Alexander E. Shvarev recalled: "The Mig was perfect at altitudes of 4,000 m and above. But at lower altitudes it was, as they say, 'a cow'. That was the first weakness. The second was its armament: weapons failure dogged this aircraft. The third weakness was its gunsights, which were inaccurate: that's why we closed in as much as we could and fired point blank." On 22 June 1941, most MiG-3s and MiG-1s were in the border military districts of the Soviet Union. The Leningrad Military District had 164, 135 were in the Baltic Military District, 233 in the Western Special Military District, 190 in the Kiev Military District and 195 in the Odessa Military District for a total of 917 on hand, of which only 81 were non-operational. An additional 64 MiGs were assigned to Naval Aviation, 38 in the Air Force of the Baltic Fleet and 26 in the Air Force of the Black Sea Fleet. The 4th and 55th Fighter Regiments had most of the MiG-3s assigned to the Odessa Military District and their experiences on the first day of the war may be taken as typical. The 4th, an experienced unit, shot down a Romanian Bristol Blenheim reconnaissance bomber, confirmed by postwar research, and lost one aircraft which crashed into an obstacle on takeoff. The 55th was much less experienced with the MiG-3 and claimed three aircraft shot down, although recent research confirms only one German Henschel Hs 126 was 40% damaged, and suffered three pilots killed and nine aircraft lost. The most unusual case was the pair of MiG-3s dispatched from the 55th on a reconnaissance mission to PloieÅŸti that failed to properly calculate their fuel consumption and both were forced to land when they ran out of fuel. Most of the MiG-3s assigned to the interior military districts were transferred to the PVO where their lack of performance at low altitudes was not so important. On 10 July 299 were assigned to the PVO, the bulk of them belonging to the 6th PVO Corps at Moscow, while only 293 remained with the VVS, and 60 with the Naval Air Forces, a total of only 652 despite deliveries of several hundred aircraft. By 1 October, on the eve of the German offensive towards Moscow codenamed Operation Typhoon, only 257 were assigned to VVS units, 209 to the PVO, and 46 to the Navy, a total of only 512, a decrease of 140 fighters since 10 July, despite deliveries of over a thousand aircraft in the intervening period. By 5 December, the start of the Soviet counter-offensive that drove the Germans back from the gates of Moscow, the Navy had 33 MiGs on hand, the VVS 210, and the PVO 309. This was a total of 552, an increase of only 40 aircraft from 1 October. Over the winter of 1941-42 the Soviets transferred all of the remaining MiG-3s to the Navy and PVO so that on 1 May 1942 none were left on strength with the VVS. By 1 May 1942, Naval Aviation had 37 MiGs on strength, while the PVO had 323 on hand on 10 May. By 1 June 1944, the Navy had transferred all its aircraft to the PVO, which reported only 17 on its own strength, and all of those were gone by 1 January 1945. Undoubtedly more remained in training units and the like, but none were assigned to combat units by then.

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This webpage was updated 2nd August 2021

Alex Jones Estate Liquidation Gets Sandy Hook Families’ Vote

By Alex Wolf

The families of Sandy Hook school shooting victims voted overwhelmingly in favor of a plan to wrap up Alex Jones’ bankruptcy proceedings by liquidating the right wing talk show host’s assets.

Jones’ general unsecured creditors—comprised mostly of Sandy Hook families holding about $1.5 billion in defamation judgments against the famed conspiracy theorist—voted 100% in favor of a Chapter 11 plan that would methodically liquidate and redistribute his property and cash, while preserving potential legal actions against parties affiliated with Jones and his Infowars program.

An official committee appointed to represent Jones’ unsecured creditors notified the US Bankruptcy Court for the Southern District of Texas on Feb. 16 that of 23 liquidation plan ballots distributed to creditors, it received 21 back—all supporting the committee’s liquidation proposal .

The vote indicates the creditors’ preference over a competing plan submitted by Jones that would allow him to reorganize by preserving parts of his media empire and paying the group at least $5.5 million a year over 10 years. His plan would provide additional creditor recoveries out of disposable income from Jones’ bankrupt Infowars parent company, portions of Jones’ personal income, and the proceeds from selling various personal assets.

No ballot tabulation for Jones’ plan has been submitted to the court yet.

The parties are scheduled to hold plan approval hearing in late March.

Jones filed for Chapter 11 protection in December 2022, after being hit with state court judgments for repeatedly calling the 2012 massacre of elementary school students and teachers a hoax. Bankruptcy Judge Christopher Lopez ruled last year that Jones can’t discharge the defamation awards because those debts stemmed from intentional and malicious conduct.

Jones is represented by Crowe & Dunlevy PC and Jordan & Ortiz PC.

The creditors’ committee is represented by Akin Gump Strauss Hauer & Feld LLP.

The case is In re Alexander E. Jones , Bankr. S.D. Tex., No. 22-33553, notice filed 2/16/24.

To contact the reporter on this story: Alex Wolf in New York at [email protected]

To contact the editor responsible for this story: Maria Chutchian at [email protected]

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