- SMB Law Firm attorneys say working remotely helps retention
- It’s important to review compliance and tax policies
Though remote work became a necessity for law firms and their employees during the Covid-19 pandemic, we better understand that arrangement four years later. From reduced burnout to increased employee retention and attraction—and an expanded geographic footprint—there are plenty of reasons for firms to ditch the office altogether.
But challenges accompany the decision, such as tax considerations, bar admissions, and how compliance and confidentiality rules impact remote staff support.
So what’s a firm to do? There are a few key considerations to keep in mind as you weigh the pros and cons.
Attorneys have a high burnout rate. Many work 16 to 18 hours a day in high-stress environments and have long commutes. That doesn’t sound healthy.
When we pivoted to a fully remote firm, we realized that a remote-first arrangement helps lawyers work where and when they want—and stay happier. A 2024 National Association for Law Placement study found that associates who worked remotely had a higher job satisfaction rate on average than those who worked in the office.
The ability to work from home can be a godsend for parents or those who are caregivers for a family member or loved one. They’ll be better able to balance work and home obligations, spending valuable time with people they care about while also getting all their work done.
There’s an equity angle here as well: Across all industries, more women with children have been able to work than ever before. This is due in part to a rise in remote work flexibility, allowing mothers to balance work and home responsibilities more effectively.
In addition to employee satisfaction, the “no-office” arrangement has financial benefits. Without expensive office building rent payments and other expenditures, going fully remote can bolster a firm’s bottom line and, as a bonus, make a positive environmental impact.
While many workers say they are more productive at home than in the office, there are always exceptions. Taking your firm fully remote means having to find ways to accommodate workers who may struggle in that new environment.
For example, older employees may not feel they have the technological savvy needed to get their work done from a home office. Helping them out by enrolling them in a course for online literacy could be a great first step.
With pre-pandemic tax regulations now back in full effect in the US, employers have faced additional compliance challenges. This is one of the largest considerations most partners have when deciding if moving to a fully remote working arrangement is the best choice for their firm.
US employers need to ensure they’re compliant with withholding rules for each state where they have employees, as well as the labor and employment laws for every jurisdiction. Investing in an employee benefits management platform that will handle these individual compliance concerns could help.
Firms should also implement secure, encrypted communications tools and two-factor authentication to ensure compliance with cybersecurity and confidentiality standards. This is particularly vital for any attorneys who may be working remotely from non-secure networks, such as coffee shops or libraries.
Remote work also allows attorneys to more easily work across state lines. This can open new revenue streams, but it can also present questions of jurisdiction.
These requirements, like those of employment taxation, vary by state. Staying up to date on the latest laws and regulations is essential. If you’re interested in harnessing remote work to expand your geographical reach, hiring team members from across the country would ensure you have attorneys who are licensed in different areas.
Before making new hires across state lines, be sure to first familiarize yourself with each state’s unique labor and employment laws, including wage and hour requirements, overtime regulations, and paid leave mandates. Conduct regular audits to keep up with changing regulations and avoid penalties.
While there are many challenges involved in converting an in-person working environment to one based solely online, the benefits to employees and businesses alike may make the transition worth it. By considering the pros and cons in equal measure, you’ll be able to make the best decision for your firm and its employees—regardless of how you end up working.
This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.
Author Information
Kevin Henderson is an experienced corporate lawyer with over a decade of M&A, venture capital, and capital markets experience.
Eric Pacifici is a trusted deal lawyer with extensive M&A and capital markets experience.
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