There was a small business owner named Beth who ran a bakery in a small town. She had a team of five employees who worked with her to bake and sell the delicious cakes, bread, and pastries that the bakery was known for creating.
One day, Beth received a complaint from one of her employees, John, who claimed he had been unfairly terminated. He alleged that he was let go because he had refused to work overtime without pay, violating state labor laws.
Beth was worried about the situation’s potential legal implications, so she contacted an employment attorney for advice. She found a reputable professional specializing in employment law and scheduled a consultation.
During the appointment, the attorney listened to Beth’s side of the story and reviewed the relevant documents, including the employee’s contract and the state labor laws. The attorney explained that if John’s allegations were true, Beth could face serious legal consequences, including fines, penalties, and potential lawsuits.
When your business needs help to comply with various laws, rules, and regulations, an employment attorney provides assistance to resolve complaints and remain compliant.
When Does an Employer Need an Employment Lawyer?
An employment lawyer ensures that a company’s policies don’t violate laws regarding family leave, overtime pay, occupational safety, and final payments. It is a proactive approach to ensure regulatory compliance. It can be a reactive need for some companies, especially if an employee files a claim or litigation occurs.
An employer may need an employment lawyer in a variety of situations. Here are some common scenarios where a business might need to seek legal advice.
- Hiring and Firing Advice. An employer may need an employment lawyer to ensure their hiring and firing practices comply with federal and state laws. This may include drafting employment contracts, developing personnel policies, and ensuring compliance with anti-discrimination laws.
- Wage or Hours Issues. Employers may need an employment lawyer to advise them on compliance with wage and hour laws, including minimum wage and overtime requirements, and to defend against wage and hour violation claims.
- Harassment or Discrimination Claims. If an employee alleges discrimination or harassment, an employer may need an employment lawyer to investigate the claim, develop a response, and defend against any legal action that may result.
- Workplace Safety Issues. A business may need an employment lawyer to ensure that their workplace safety practices comply with federal and state regulations, and to defend against claims of workplace safety violations.
- Labor Relations. Some companies could need legal assistance to advise them on compliance with labor laws, including union organizing, collective bargaining, and strikes.
Another common area where businesses need help with employment law involves the benefits offered to employees. Proactive and reactive legal assistance is often necessary to ensure compliance with these rules and regulations.
Specific areas include health insurance, retirement plans, and disability benefits.
Generally, any situation where an employer is facing legal issues related to employment or labor laws may warrant the advice and guidance of an experienced employment lawyer.
How Does a Business Place an Employment Attorney on Retainer?
Placing an attorney on retainer means that the company is hiring the lawyer to be available for legal services when required.
This relationship places the legal professional into an on-call status where they start working on a project or concern immediately.
If there isn’t an employment-related issue, the retainer is still paid to the attorney if there is a monthly agreement to continue payments. Some contracts might focus on a one-time fee that gets depleted before another is required.
Businesses that want to take this step to ensure they have the employment help they feel is needed should take the following actions to have a successful outcome. It’s important to note that retainer agreements can vary depending on the lawyer and the type of legal services required. Be sure to review the contract carefully and ask any questions before signing.
1. Research Potential Employment Attorneys
Look for attorneys with experience in the relevant areas of law for your business. You can ask for referrals from colleagues, check online directories, or contact your local bar association for recommendations.
These directories allow you to search for attorneys by location, practice area, and specialization.
You can check online reviews on websites like Google, Yelp, and Facebook. This information can provide insight into the attorney’s reputation and track record of success.
Another option is to visit the employment website to learn more about their experience, qualifications, and practice areas. Some sites might provide testimonials from previous clients on their websites.
2. Schedule a Consultation
Schedule an appointment with the attorney to discuss your company’s legal needs and determine if they are a good fit for your business.
You can find the contact information of an attorney’s office on their website or through an online search. You can call or email the office to request an appointment. Some attorneys may also offer online scheduling tools on their websites.
When you contact the employment attorney’s office, please provide them with the details of your legal issue. This conversation will help the lawyer determine if they are the right fit for your case and if they can help you.
Before the appointment, gather any relevant documents or information related to your legal issue that the attorney may need to review.
3. Negotiate Your Terms
Once you have selected an attorney, negotiate the terms of the retainer agreement. This contract should include the scope of work to be provided, the hourly rate, and any other fees or expenses associated with the services.
The cost of a retainer for an attorney varies widely based on several factors, such as the attorney’s experience and reputation, the complexity of the case, the location, and the type of legal services being provided.
Retainer fees can range anywhere from a few hundred to several thousand dollars, depending on the above factors. Some attorneys charge a flat price, while others charge an hourly rate.
4. Sign the Paperwork
Once the terms are agreed upon, sign a written agreement outlining the retainer contract terms. You’ll need to follow the bylaws, operating procedures, or standing rules for your company to ensure an authorized party puts their signature on the document.
If someone signs the document without authorization, your company might still be liable for fees and costs associated with the intractions you have with the employment attorney.
5. Pay the Retainer Fee
Employment attorneys might require an upfront retainer fee to secure their services. This amount is typically paid at the time of signing the agreement.
Your business can pay the retainer fee to the attorney you’ve selected to represent you in employment matters in several ways.
- You can write a check or obtain a money order made payable to the attorney or their law firm. Be sure to include the purpose of the payment.
- Some legal firms may accept credit card payments for retainer fees. You can provide payment information over the phone or online through a secure portal.
- You can initiate a wire transfer from your bank account to the attorney. Be sure to obtain the lawyer’s account information and follow the wire transfer instructions carefully, verifying the info is accurate and authentic before authorizing the transfer.
- In some cases, attorneys may accept business cash payments for retainer fees. However, obtaining a receipt or other documentation for the money is essential if you choose this method since there won’t be a third-party paper record of the transaction.
Most businesses pay by check from a designated budget line to pay a legal retainer. Only small companies, like a startup or a one-person LLC, might need to use cash for this transaction. Whenever you issue money, always take a buyer-beware approach to ensure there is documentation of the monetary transfer.
6. Contact the Firm When Required
As legal needs arise, contact the attorney to request legal services. The attorney will bill against the retainer until it is depleted, at which point the business may be required to pay additional fees or replenish the retainer.
If you feel that your employment attorney inadequately represents your needs, your contract will outline the steps to ensure you can make changes. Be aware of one-sided agreements that favor the legal professional over your business.
Does My Commercial Insurance Policy Cover Attorney Retainers?
Whether or not your business insurance will cover attorney retainer costs will depend on the specific terms of your policy.
Some types of business insurance, such as general liability, can include coverage for legal expenses, including attorney fees, if you are sued by a third party for damages. This coverage is often subject to limits and exclusions.
Other types of business insurance, such as employment practices liability, may specifically cover legal expenses related to related claims, such as discrimination, harassment, and wrongful termination.
To determine whether your commercial insurance policy includes coverage for attorney retainer costs, you should review your policy documents and contact your insurance provider or broker to discuss your coverage options.
It’s important to note that even if your business insurance policy includes coverage for legal expenses, it may not cover all legal issues. For example, if you need a lawyer for contract negotiations or business disputes, your insurance policy may not cover this service.
In such cases, you may need to pay for the attorney’s services out of pocket or negotiate a separate retainer agreement.
What Are My Company’s Risks If I Don’t Hire an Employment Attorney?
With proper legal guidance, a business could be protected from employment-related lawsuits from current or former employees. Without help, this issue can be costly regarding legal fees, settlements, and damages awarded if the case is ruled in favor of the worker.
Employment-related lawsuits can also damage your company’s reputation, leading to loss of business and difficulty attracting new clients or employees.
When legal issues arise, they’re often time-consuming and distracting. That takes you away from the daily duties of running your company, often leading to productivity losses.
A company known for mistreating workers or trying to find workarounds for employment laws often finds attracting or retaining top talent difficult. That means there could be a lasting adverse impact on what you’re hoping to accomplish.
Employment laws and regulations are complex and constantly evolving. If you don’t have an attorney to guide you, you may unknowingly violate employment laws, leading to compliance issues, fines, and legal disputes. That’s why hiring one makes sense, even for small businesses, startups, and freelancers.
Hiring an employment attorney can minimize these risks and ensure that your company follows employment laws and regulations.
