Pros and Cons of Sequenced Retirement
February 28, 2007
Coming to terms with retirement is difficult and, like most things, is even harder if you are a law firm partner. As soon as you begin to think about throttling things back a tad, your clients demand a quicker response time and your partners want you to bring in more business. At the same time, what seemed just a short time ago to be a distant respite is now looming over you and you may not even know what to do or if you can even afford to do it. Moreover, even if you do not want to retire, your partnership agreement may have a mandatory retirement provision that takes away your choice.
Nondiscrimination Rights: EEOC Limits on Waivers
February 28, 2007
When involuntary employment terminations become necessary, employers often seek protection from possible post-employment claims by conditioning severance pay on the signing of a general release and agreement not to sue. As a general rule, such waivers are enforceable if they are 'knowing and voluntary.' Less clear, however, is under what circumstances an employer may condition severance payments on a promise by the departing employee that he/she will not pursue a charge with the Equal Employment Opportunity Commission ('EEOC') in connection with an allegation of discrimination, harassment, or retaliation.
TRHCA Tax Savings
February 28, 2007
Along with a multitude of other changes, the Tax Relief and Health Care Act of 2006 ('TRHCA') extends the time for several tax cuts that had expired at the end of 2005, makes certain tax breaks more beneficial, and provides greater flexibility regarding health savings accounts. This article highlights noteworthy new TRHCA provisions that can benefit law firms and their clients, as well as individual attorneys and staff members and their families.
Supporting Non-Equity Career Opportunities Through Two-Tier Ownership Structures
February 28, 2007
Lately, we've been hearing from a growing number of our (Hildebrandt International, Inc.) clients about escalating concerns relating to career path and non-equity opportunities. Although 79 AmLaw 100 firms and 169 of the NLJ 250 firms acknowledge a tiered ownership structure, and a large number of others utilize a de facto two-tier structure, many firms still adhere to a single-tier model.
Partnership Investments
February 28, 2007
With profits per partner continuing to rise, many attorneys have more discretionary income available for investment. In addition to investing directly in both traditional and nontraditional sources, some partners may also choose to invest (either inside or outside their law firms) in opportunities that arise in the law firm setting.
e-Commerce Holds Strong in Fourth Quarter
February 27, 2007
The federal government last month put its estimate of e-commerce sales for the fourth quarter of 2006 at $29.3 billion, up 6.3% from the third quarter, and up 24.6% from the fourth quarter of 2005, with the increase in total retail sales from late 2005 to late 2006 estimated at 4.6%.
Sarbanes-Oxley Act Offers Recording Artists Potent Tool for Challenging Label Operations
February 27, 2007
Armed with a 'blue sky' law passed in 2002, new Securities and Exchange Commission (SEC) regulations and a general shareholder mood of discontent that is turning into activism, artists have an unprecedented opportunity to seek meaningful corporate reform and oversight of the music industry through the corporate boardroom. What they couldn't accomplish as disgruntled artists, they may be able to accomplish as disgruntled shareholders.
Associate Bonus Plateau
February 01, 2007
Law firm associate bonuses generally were flat in 2006 compared with the year before. Few would argue that year-end perks up to $65,000 for senior associates were skimpy, but with business brisk and law firms scrambling to attract and keep good associate help, the question is: 'Why?'
DC Conference on Firm Management, Economics
February 01, 2007
On March 22'23 at the Washington Park Hyatt Hotel, Joel A. Rose & Associates, Inc., Management Consultants to Law Offices, will present its 20th Annual Conference & Workshops on Law Firm Management & Economics.
A Rational Basis for Setting Hourly Rates
February 01, 2007
For the past 20 years, law firms have annually increased their hourly rates on the basis of various ad hoc criteria ' what the market will bear, matching the competition, cost-plus, maintaining profit margins ' that neither firm members nor clients find satisfactory. Alternative pricing methods (fixed fees, percentage of the deal, etc.) have long been advocated as a solution to hourly billing discontents, but in practice, for a large majority of firms they remain limited in application. Firms whose clients expect fees to be charged on an hourly rate basis therefore require a rational means of constructing an hourly rate schedule that is transparent and acceptable to clients as well as defensible within the firm.
