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This issue of Law Practice Today focuses on “new law” within the practice. When first presented with the theme by our LPT Editor-in-Chief Andrea Malone, I was in a quandary as to what was meant by “new law.” She noted that this issue would cover emerging areas of law such as marijuana, artificial intelligence, crowdfunding, cyber insurance and fashion, and how they are changing the legal landscape. She also said that this cutting-edge issue for our ABA Law Practice Division webzine would address how practitioners would develop and market a practice in one of these new areas of law. While the ABA Law Practice Division works with all areas of substantive law in their respective practices, it is timely in this edition that we also highlight the new ways and means to practice law.

 

Over the past half century, the ABA Law Practice Division has led the way embracing new ideas in providing legal services in our core areas of finance, management, marketing and technology. How can we as practitioners be more efficient and effective in the delivery of legal services and educate our members and the profession accordingly? As we began this new year with our various resolutions to do things better,  many in the profession are looking for new means to address old concerns in the practice of law.

As I have stated in other forums, including the current issue of the division’s magazine, Law Practice, attention to client service is paramount. Clients grow weary of business as usual in securing legal services. With an abundance of new ideas, many propelled by technology, lawyers are finding themselves in a buyer’s market. In-house counsel are using matter-management software to analyze billing trends to make data-driven business decisions. Clients want certainty as they purchase legal services, and are demanding legal project management, a method for attorneys to plan, execute, manage and control a legal engagement to provide an effective solution for the client at a predictable cost – in other words, bringing more value to legal services.

Developing a data-driven practice through knowledge management, connecting people to the information they need, is a key to survival in the law practice market of tomorrow. The implementation of knowledge management systems enable lawyers to thrive in today’s rapidly changing economy and contribute to the development of sustainable competitive advantages.

Technology also is transforming the practice of law through virtual or mobile practice, cloud computing and document automation. Today’s practice has attorneys throughout the world using the cloud and providing legal services through client portals, where tclients and lawyers can quickly and easily collaborate on documents and other tasks. In today’s legal services market, lawyers must continually strive to provide cost-effective and efficient solutions to our clients’ legal problems.

The new ways of practicing law also incorporate a number of models that are not so new, such as alternative billing with flat fees and value pricing, and limited scope representation where attorney and client agree to limit the scope of the legal engagement, leaving certain tasks to the client or other responsible parties. All are part of the client centric movement that is transforming today’s legal market.

Finally, new ways of practicing law are not just about clients and their desires for cost-effective and efficient delivery of legal services, but “new law” is also about the attorneys and how they practice. The new concept of mindfulness in the practice of law is gaining traction. Lawyers are faced with handling some of the most stressful issues in their clients’ lives. Multiply that by 100 or more for most attorneys, and no wonder that today’s lawyers are under a tremendous burden of stress. How do we handle, how do we manage that stress? Mindfulness in the practice of law has been the answer that many have found that offers a solution.

 

As witnessed over the past half century, the ABA Law Practice Division is continuing to bring these and so many other areas of “new law” to the members of the profession through CLE, webinars, publications, the Legal Technology Resource Center, Law Practice magazine and this webzine, Law Practice Today. For those that want to learn more there are a number of fivision committees and task forces that are available to any members that wish to join. As chair of the ABA Law Practice Division, I invite you to join one of these division entities. Engage with the division, together we can learn and forge a path forward towards a more client centric and fulfilling practice for all.

About the Author

BoltTom Bolt is the founder and managing attorney of BoltNagi PC in St. Thomas, U.S. Virgin Islands, and is the chair of the ABA Law Practice Division.

 

 

 

 

In the previous issue of Law Practice, I discussed the Law Practice’s Division theme of building bridges with respect to the attorney-client relationship. In this marketing issue, I think it compelling that the most important aspect of any firm’s marketing strategy is client service. Superior client service is an investment that can drive law firm growth. Investing in talented lawyers and staff with the training and tools that enable them to actively listen and empathize with clients is key to building a solid bridge to clients and providing consistently excellent service experiences.

A client-centered service policy is based upon the recognition that what our clients want most from their attorneys is care and concern. Often satisfaction is based more on how the client is treated than the result obtained or the amount of the fee. As a profession, we should commit to our clients to provide the highest-quality legal services at a value that they perceive as fair and reasonable. We fulfill this commitment by establishing long-standing relationships with our clients based on the fundamental principles of trust, communication and efficiency.

Trust is the backbone of any mutually rewarding relationship. We should strive to fully understand our clients’ businesses and empathize with their needs. We should strive to become members of their “team.” By having a stake in their future, our clients will trust that our counsel is in their best interest.

If a client has a problem or becomes unhappy with some aspect of the service provided, their confidence and trust in the situation must be addressed immediately so the issue does not grow worse. If a client leaves a message expressing unhappiness with some aspect of service, a return phone call must have the highest priority.

To foster client trust, expectations must be managed throughout the process. Any significant change in the course of a matter or a case plan must be shared with the client as soon as possible. If the fee estimate cannot be met, the attorney needs to adjust the manner in which the matter is handled or contact the client to discuss adjusting the fee estimate. Contacting a client in advance if a monthly bill is higher than expected is critical to retaining their trust. Never surprise a client with the amount of a bill.

A successful lawyer-client relationship also depends on consistent and productive communications. I often say that 98 percent of the problems we face today are due to a lack of effective communication. As professionals we must strive to maintain good attorney-client communication, trying to anticipate client needs and problems and collaborating with them to resolve these issues. Representing our clients must be an interactive process. Both attorneys and their staff must develop and maintain a mindset that it is all about the client. Clients should be treated as people, not files. Responding to clients should be a priority, and every client contact should project genuine concern for their matters. By being proactive in communicating with clients, we can often provide innovative solutions to unique problems and help them keep small issues from becoming big ones.

In my previous column, I addressed the issue of client demand for efficiency in the delivery of legal services. Attorneys must be equipped to respond immediately to most challenges that our clients face. Clients deserve prompt and effective legal services, and today clients expect faster service than ever. By allocating our resources and applying different expertise to our clients’ problems, we can work with the client as a member of their team to efficiently address the issues that confront them.

In today’s market, most clients perceive that all attorneys will provide high-quality legal services. What sets a firm apart is client service. One of the most powerful and effective tools to build a successful law practice is client service. Let client services be our watchword!

About the Author

BoltTom Bolt is chair of the ABA Law Practice Division. He is managing attorney at BoltNagi PC, in St. Thomas, Virgin Islands, where he concentrates his practice in business, real estate, finance and government relations. tbolt@vilaw.com

 

 

 

 

 

copyrightofficeAs changes take place in the intellectual property landscape due to advances in technology and other factors, the U.S. Copyright Office must periodically revise its approach to protecting creative works. Recently, the agency outlined a strategic plan designed to bring the office into the 21st century, both in terms of its ability to protect intellectual property and its creators and in terms of the ways in which the office’s customers and the public can access information about copyrights and copyrighted materials.

In outlining its plan, the office set out six strategic goals it hopes to implement by 2020:

  • Continue to be an effective, efficient administrator of U.S. copyright laws, to the benefit of both creators and the general public.
  • Improve the ease with which all interested parties are able to access and search copyright records.
  • Provide its expertise to the three branches of government to settle questions of copyright law and related policies.
  • Provide a steady and reliable stream of information, educational programs and other resources to members of the public.
  • Make substantial improvements to the technology that serves the Copyright Office and those with whom it interacts.
  • Step up its recruitment efforts to ensure it integrates the best legal, technology and business minds into the office’s team, while also improving training and development practices.

In addition, throughout 2015, the office evaluated some specific areas in which modernization efforts will be necessary to adapt to the changing ways in which intellectual property law affects both its creators and the marketplace. These efforts have included:

  • The establishment of the Fair Use Index, a resource that allows interested parties to better access judicial documents related to the fair use doctrine.
  • The Orphan Works and Mass Digitation Study, which attempts to find solutions to licensing issues involving works for which copyright owners cannot be determined.
  • A study of the current system of music licensing, in an attempt to modernize and simplify what is currently a complex system.
  • A proposed resale royalty to be paid to visual artists.
  • The proposed establishment of a Copyright Office Tribunal to handle small copyright infringement claims and relieve the federal court system of that burden.
  • An investigation of the potential benefits of bringing pre-1972 sound recordings under the purview of the federal copyright system, which the office concluded would benefit the public as well as library and archive systems.

With changes in technology happening all the time and having considerable impact on the ways in which intellectual property is created, disseminated and used, the Copyright Office believes that efforts like its strategic plan will be necessary in bringing copyright law in line with present day conditions. The office remains committed to making necessary adjustments to its practices, and to advising the government on matters involving intellectual property.

BoltNagi is an established and respected intellectual property law firm serving clients throughout the U.S. Virgin Islands.

charlotteamalieThe effects of the 2009 increase in the unemployment rate continue to be felt in the U.S. Virgin Islands, as the territory struggles to pay back the balance of a federal loan taken out to maintain its ability to pay unemployment benefits and fund related programs. However, some measure of relief is on the way, as the federal government recently approved a waiver that allows the territory to be exempted from a decrease in the federal unemployment tax credit.

According to USVI Labor Department Commissioner Catherine Hendry, the remaining balance on that 2009 loan is $72.2 million. Although the territory has been making payments on the loan with consistency, its failure to pay it back in full within five years left the government at risk of experiencing a decrease in the amount credited back to employers once federal unemployment taxes have been paid.

How the unemployment tax credit works

To pay unemployment benefits to those looking for work, and to fund the cost of the programs designed to help them, the federal government collects a 6 percent tax on the first $7,000 paid to employees. This tax is also used to pay back federal loans of the sort the USVI took out in 2009. Federal unemployment taxes may be offset by a 5.4 percent tax credit provided to businesses that file their taxes in a timely fashion and abide by other conditions the government determines.

This 5.4 percent credit, however, can be adjusted in certain circumstances, as it was in 2009 when the credit was cut by 1.5 percent in an effort to help pay back the loan. Now, as the territory retains an outstanding balance on its loan, a further reduction of 2.7 percent was set to be implemented unless the government approved a waiver, for which USVI Gov. Kenneth Mapp applied in June.

Now that the waiver has been approved, employers in the USVI will see only the expected 1.5 percent reduction in the unemployment tax credit.

U.S. Virgin Islands government officials remain committed to paying the loan in full and are still looking to reduce the territory’s credit reduction, but the precise repayment plan and timeline for paying off the outstanding debt are unclear. In the meantime, USVI employers can continue to hope that there is no drastic rise in unemployment (as seen in 2009) and that the government continues to make its loan payments and support the territory’s unemployed workers to the best of its ability.

BoltNagi is a widely respected and well-established government relations law firm serving individuals, businesses and organizations throughout the U.S. Virgin Islands.

PERSPECTIVES

Building Bridges with Clients in Mind

Our theme in this particular issue is law firm finance. The bridge of law firm finance needs to be constructed with the client in mind. Gone are the days when clients routinely pulled up to the law firm pump and stood idly by while the legal services charges spun wildly out of control. In today’s legal market, clients insist on accountability. To this end, legal project management has become the preferred method for attorneys to plan, execute, manage and control a legal engagement to obtain a favorable solution for the client at a predictable cost.

Over 13 years ago the ABA Commission on Billable Hours published its report evaluating alternative fee models to the billable hour, citing various legal industry concerns:

  • Client solutions that lacked sufficient planning and rewarded inefficiency and a lack of productivity.
  • Case management practices that resulted in rework, duplicated effort and flawed staffing.
  • Legal costs that did not reflect value and could not be determined until a matter closed.
  • Rate differentials that failed to account for actual experience and productivity.

Five years later the Association of Corporate Counsel issued the ACC Value Challenge calling for the adoption of management practices that allowed all participants to achieve the key objectives of lower costs, higher predictability and better outcomes. Attorneys and law firms were challenged to increase the value and reduce the costs of their services, while clients and corporate counsel were challenged to drive this change by managing their outside counsel.

These catalysts, as well other market forces, are placing increased pressure on legal practitioners to provide more transparency and to implement more efficient management practices to achieve predictable legal costs, whether based on the billable hour or alternative pricing arrangements. After decades of operating by means of the billable hour, the majority of the legal industry still lacks the expertise and ability to dramatically change its habits. In the absence of an industry standard for change, a new concept emerged: legal project management.

Legal project management is evolving as a method for attorneys to plan, execute, manage and control a legal engagement to obtain an effective solution for the client at a predictable cost. Attorneys customarily perform some of these processes when undertaking an engagement. However, the methods employed are inconsistent, episodic and, except in repetitive engagements, rarely provide the client with a reliable expectation of service or cost.

Noting that no standard for legal project management exists, LP’s Council, at its Spring 2015 meeting, established the Legal Project Management Task Force. The mission of this committee, led by David Reuff, is to evaluate this evolving area and provide the profession with guidance as to:

  • Using legal project management to improve attorney-client relationships and the delivery of services, including a closer adherence to ethical standards.
  • Implementing process improvement techniques to streamline and improve the efficiency of matters.
  • Using project management information systems to capture, manage, report and evaluate case management activities.
  • Evaluating the “legal project manager” in legal organizations.
  • Integrating legal process outsourcing into legal service offerings and developing best practices to guide lawyers and their legal organizations.

This LP committee is leading the profession in building one of the many bridges that clients require. It’s assessing the present state of legal project management in the profession, evaluating the body of work to date and developing new tools to improve legal case management workflow, as well as standardizing case evaluation and management and training materials, forms and best practices to offer the profession.

Working together, LP and its new committee are building the bridge that our clients require-a win-win proposition where attorneys provide quality legal services for value. LP

About the Author

BoltTom Bolt is the founder and managing attorney of BoltNagi PC in St. Thomas, U.S. Virgin Islands, and is the chair of the ABA Law Practice Division.

 

 

 

 

 

From the 1957 inception of the American Bar Association’s Select Committee on the Economics of Law Practice, the predecessor of our Law Practice Division, issues of law practice management have been at the forefront of our mission and programming. In 2015, however, the division leadership  expanded on that core area to focus on the critical issue of lawyer leadership.

The legal profession has provided a majority of American presidents and, more recently, almost half of the U.S. Congress.  In the business world, lawyers constitute at least 10 percent of the S&P 500 companies’ CEOs.  In addition to serving in customary roles as judges, prosecutors, corporate counsel and law firm managing partners, members of the bar also serve in leadership roles as governors, state legislators, and leaders in government and nonprofit organizations.  Every day, we see lawyers chairing community and charitable boards – lawyers leading in every aspect of our day to day life. But what are we doing as a profession to prepare them – to develop our lawyer leaders of tomorrow?

Although lawyers are highly intelligent and astute professionals, they are inherently ill-adapted to leadership and management roles.  Dr. Larry Richard, principal at Lawyer Brain LLC, recently presented at ABA LEAD LAW 2015 and wrote on “The Mind of the Lawyer Leader” in the September/October 2015 issue of Law Practice, the division magazine.  Dr. Richard noted that, on average, lawyers score significantly higher than the rest of the population in six key behavioral traits. They are highly skeptical, autonomous, antisocial and resistant to new ideas, have a high sense of urgency and are easily discouraged by setbacks. This places them at a considerable disadvantage when it comes to leadership and managerial tasks.

In today’s rapidly changing law practice environment, lawyers are faced with unprecedented challenges. In leading their practice, their firms, working with clients and their respective communities, lawyers are ill-equipped.  To address the need for lawyer leadership training, the ABA Law Practice Division began by establishing its Lawyer Leadership and Management Committee, with Mark Beese, president of Leadership for Lawyers, LLC, as chair. Mark has an excellent article in this edition of Law Practice Today, “The Law Firm as a Learning Organization.”

The Law Practice Division’s Lawyer Leadership & Management Committee provides a forum for practical information, discussion and programs relevant to the leadership and management of law firms and legal organizations.  It also provides leadership information and training to lawyers to be better leaders, by equipping them with the vision, knowledge and skills necessary to serve as leaders in the profession and in the community as a whole, as well as raising awareness of the broad range of issues and challenges facing leadership and management in the practice of law. This year’s plan for the committee includes programs on issues such as managing Millennials, influence and persuasion, resiliency and grit, managing change and innovation, self leadership and building effective teams.

In 2015, the Law Practice Division initiated the inaugural ABA LEAD LAW, an annual lawyer leadership development experience designed specifically to equip lawyers and legal professionals with new perspectives and practical tools in lawyer leadership.  ABA LEAD LAW, which was conceived and chaired by Tom Grella, is built on a belief that leadership is the foundation in every role a lawyer serves in professional life.  The program equips its participants in developing the capacity to lead their practice and their firm, as well as their communities, involving a combination of skill, insight, discipline and courage.

Tom is also the author of the LP publication, “Lessons in Leadership: Essential Skills for Lawyers” one of a number of excellent books published by the ABA Law Practice Division that educate and enlighten lawyers as to fundamental skills in leadership and management.  Other Law Practice Division publications dedicated to issues on lawyer leadership and management include:

Not to be outdone, Law Practice magazine dedicated its September/October 2015 issue to Lawyer Leadership, with articles by Division Secretary Katy Goshtasbi on “Adaptive Leadership,” a new way of viewing and exercising leadership as lawyers; Mark Beese on “Four Necessary Leadership Skills;” Stewart Levine on “The Power of Leading an Engagement Effective;” and  as mentioned earlier in this article by Dr. Larry Richard on “The Mind of the Lawyer Leader.”

John Mitchell, our division chair-elect, has dedicated his career to helping professional service firms develop their leaders and engage their talent.  John is building upon the tremendous relationship that the Law Practice Division has with the ABA Young Lawyers Division by developing a young lawyer leadership and business development program.  YLD has identified leadership and business development as two of the most important skills young lawyers need to be successful within an ever changing practice.  Building upon the expertise and experience of members of the Law Practice Division, the program will include a series of in-person workshops that will take place during the ABA’s quarterly meetings.  A series of live and recorded webinars will supplement the in-person programming.  The goal is to develop a strong program that will ultimately become an ongoing series that will help develop successful young lawyers for many years to come.

Together, the ABA Law Practice Division is providing the most comprehensive set of lawyer leadership tools that have ever been offered in any one setting.  The division is fast becoming the go-to partner for lawyers to develop, enhance and grow their leadership skills.  As division chair, I encourage you to take advantage of these exceptional programs to benefit your individual practice and your leadership of your firm and community.  There is no limit to what you can accomplish by engaging with the ABA Law Practice Division and learning new skills in lawyer leadership.  Together we can!

About the Author

BoltTom Bolt is the founder and managing attorney of BoltNagi PC in St. Thomas, U.S. Virgin Islands, and is the chair of the ABA Law Practice Division.

 

 

stock-certificateOperating capital is absolutely essential for your company’s ability to do business on a day-to-day basis. No business can survive without sufficient cash on hand, and a lack of operating capital is one of the most surefire factors likely to contribute to a business’ failure.

Fortunately, there’s a relatively easy way to increase your operating capital in the event that your cash holdings fall short of what your company needs to stay active: selling shares.

The approach to selling shares is going to be different depending on whether your company’s stock is publicly traded or not. If your company is still privately owned but experiencing substantial growth, it may be time to consider an initial public offering (IPO). However, this should be discussed with your business attorney, as the process of registering with the Securities and Exchange Commission (SEC) and disclosing information about your company can be time-consuming and may pose risks along with benefits.

Determining your best options

Many smaller businesses are simply not good candidates for an IPO, as they do not have the profile or the potential to make that process worthwhile. For privately owned companies without an IPO on the horizon, however, it’s still possible to offer stock to investors in an effort to obtain the necessary operating capital. This process is much simpler than going through an IPO, as it merely involves exchanging shares in your company for money. The investor—no matter if it’s a friend, family member, other individual or venture capital firm—puts up the money and, in return, gains a stake in your company in the form of stock shares.

For privately owned companies, it’s important that there be an official record of any stock sale to ensure its full legality. A consultation with a qualified attorney can provide the opportunity to draw up a contract—such as a stock certificate or stock transfer form—that covers the relevant details. The number of shares being sold, and to whom, should absolutely be included in such a document.

If you are considering a stock sale as a means of raising operating capital, it’s well worth speaking with an experienced business attorney before going through with the process. Because each case is unique, and considering that the laws involved can be complex, you’ll benefit from the peace of mind that comes with knowing your sale is being conducted in accordance with the law and with your company’s best interests in mind.

BoltNagi is a well-established and respected business law firm serving clients throughout the U.S. Virgin Islands.

business-investmentThe decision to invest in someone else’s business is not one to be taken lightly. After all, putting up money for a business you might not be involved in on a day-to-day basis carries a certain amount of risk, and most entrepreneurs do not leap into such a situation without putting considerable thought into it.

For this reason, the first key consideration for anyone thinking about investing in a business of any size involves taking stock of the risk involved. Evaluating risk is not just a matter of knowing whether you can afford to lose your money—it’s also a matter of recognizing whether there are aspects of the business that may make it more or less likely to be a good investment, or a not-so-good one.

Learn about the business

You probably wouldn’t think too highly of someone who invested money without doing some research ahead of time—and with good reason: smart investment is all about knowing as much as possible about what you’re getting yourself (and your money) into. For this reason, getting information about the business—its finances, its business plan and the people involved—is paramount before making any kind of financial commitment. While this information may be hard to come by for a new startup, it should be readily available for an established business. Any documentation related to a business you’re considering investing in is worth looking over with a knowledgeable attorney.

It also makes sense to discuss the potential investment with other people who might have knowledge about the business, such as other investors, people who have worked with the business or its owners and others whose opinions you trust, such as your attorney or a trusted accountant. There may turn out to be great reasons to invest—or great reasons not to.

Understand your rights

Investing in a business frequently involves little to no hands-on involvement in its operations, which generally translates to little, if any, role in making decisions that impact the direction of the business. However, there may be cases where you’ll want to be more involved and have a greater say—like when you’ve put a substantial amount of money toward the business. If your investment is considerable, you might want to take a more active role, perhaps even by serving on the board. When investing in a business, it’s critical that you understand what that investment entitles you to, and what it doesn’t.

Making an investment in a business of any size should never be something you do hastily. If you are thinking about making such an investment, consult an experienced and knowledgeable attorney who can help you understand the risks and offer the peace of mind that comes with knowing you’ve thought the decision through completely.

BoltNagi is a widely respected and established business law firm serving corporations and partnerships throughout the U.S. Virgin Islands.

 

Social media has become increasingly popular in the practice of law—not simply for client development, but in the actual substance of the practice. Litigators are researching jurors, and transactional attorneys are using social media for research in mergers and acquisitions.  Many attorneys are using social media for continuing education and assisting in reviewing prospective employees.  Social media also can be beneficial in engaging clients, learning about their business and future direction. Clearly, social media has become fundamental element in today’s practice of law.

Social media also provides greater opportunities for professional networking, and helps break down geographical barriers. For example setting up a profile on LinkedIn facilitates global access to information about you and your practice. Almost every week, potential clients are accessing my LinkedIn profile or that of my firm, BoltNagi.

In addition to the benefits of social media, it is also critically important for attorneys to understand the potential risks involved. One essential element is the division between personal and professional use of social media, and the ethical obligations of professional conduct in any online environment.

According to our own 2015 ABA Law Practice Division Legal Technology Survey, currently almost two-thirds of law firms maintain a social media presence, and more than 75% of individual lawyers maintain a presence on at least one social network. While only 35% of lawyers noted that they have obtained clients from their social networks and 39% from blogs, from my personal experience, I continue to maintain that those numbers are significantly underreported.

The ABA Survey also showed that LinkedIn is the most popular social media outlet for attorneys, with 99% of large firms (100+ attorneys), 97% of mid-size firms (10-49 attorneys), 94% of small firms (2-9 attorneys), and 93% of sole practitioners having a LinkedIn profile.

Understanding the increasing role of social media in the practice of law, the ABA Law Practice Division has recently established its Social Media, Legal Blogs & Websites Committee, ably chaired by Jennifer Ellis, with Conrad Saam and Gyi Tsakalakis as vice chairs. The committee provides a community for lawyers, legal bloggers, website developers, and practitioners who use various social media, including Facebook, LinkedIn, and Twitter. The group serves as a forum for “best practices” regarding legal blogs and websites including design, operations, search engine optimization, web marketing, hosting and site management, and the utilization of social media to increase clientele, visibility, and branding of law practices.

This year, the committee’s charge is educating our Division membership and the legal community at large as to the appropriate use of social media in client development. The committee also will work on positioning itself as an unbiased authority on social media and technology and its use in client development by providing objective, factual, and current information from well-known and respected experts within and outside the practice.

The committee will offer seminars to educate the legal community on issues surrounding social media and ethics, as well as other aspects of technology concerning the committee’s general mission: increasing engagement with our membership about how legal professionals use these online communication tools.

Although social media is constantly evolving, it is evident that it and its progeny are here to stay—serving attorneys in their active practice. The key is for attorneys to understand the fundamentals of social media as it applies to their practice and to comprehend and appreciate the ethical constraints in using social media. To this end, I recommend membership in the Social Media, Legal Blogs & Websites Committee as an excellent first step in growing your practice through social media.

About the Author

BoltTom Bolt is the founder and managing attorney of BoltNagi PC in St. Thomas, USVI, and is the chair of the ABA Law Practice Division.

 

employee-disciplineDealing with employee misconduct or failure to abide by company policy isn’t always high on most employers’ lists of favorite things to do. But it’s also one of the most important aspects of being an effective business owner. Having clear policies in place—as well as procedures for enforcing them—is one of the key elements of running an efficient organization.

The importance of having clear disciplinary policies extends beyond the day-to-day interests of your business. Failure to have a clear policy (and to apply it with uniformity and consistency) can open your business up to claims of discrimination, which may have far-reaching effects on your ability to run your company.

Uniform, consistent application

With any discipline policy, the first step is making sure your employees are aware of and understand it. Aside from being clearly outlined in your employee handbook, the key to an effective employee discipline policy is twofold: it should be applied uniformly to all employees and it should be enforced consistently.

When faced with a disciplinary issue, several steps should be taken to ensure uniform application of the company’s standards. Employees should always be notified that there’s a problem. You’ll want to explain the problem, identify how it violates company standards and explain what needs to be done to remedy the situation. There should be a timeline and clear steps for fixing the problem, as well as clear consequences for failure to do so.

While uniform application of a discipline policy is fairly straightforward, executing it with consistency can be somewhat trickier. The key is to apply the policy consistently to employees in similar situations when the violations are also similar. This requires a bit more care, as factors including the employee’s tenure, position and general track record should be considered in addition to the nature of the violation.

Avoiding discrimination claims

Enforcing an employee discipline policy with uniformity and consistency isn’t just a way of ensuring compliance from your employees—it’s also an important way to protect your company from accusations of employment discrimination, which may be easier to justify when policies are not applied fairly and consistently. If employees can credibly allege discrimination based on ability or disability, age, gender, race, sex or religion, your business will find itself in hot water. Finally, in the event that an employee files a discrimination claim, it’s absolutely critical that you not retaliate in any way, as this can create further liability for your business.

Due to its complicated nature, the establishment and application of an employee discipline policy is something best discussed with an experienced labor and employment attorney. A lawyer with knowledge and understanding of employee discipline policies will help you ensure the strength of your policy and work with you to prevent claims of discrimination.

BoltNagi is a well-established and widely respected employment law firm serving businesses and organizations throughout the U.S. Virgin Islands.