Paralegal Power Blog

A Blog for the Legal Professional

CONTRACT PARALEGALLING: THE TRUE COST OF THE IN-HOUSE PARALEGAL​

When I first started doing this I met with the late Tony Ike, an immigration attorney and all-around great guy. He was interested in my services because I speak Spanish. He congratulated me on the novel idea of offering my services on an as-needed, contract basis.
 
He said, “You know you can hire an assistant when times are good, but then you have to feed her through the winter.” We both had a hearty laugh, but he was absolutely right.
 
The true cost of an in-house employee is much greater than most employers realize. All of the successful contract paralegals that I know have a great deal of skill and expertise in their respective areas of law. They have worked in environments where they were in-house paralegals and handsomely compensated for such. Thanks to paralegal firms like ours, our friends at Nebraska Paralegal and others. Attorneys now have access to experienced legal professionals at their convenience.
 
Despite their being no dispute about the value of quality, experienced contract legal support staff, occasionally attorneys will still have sticker shock when it comes to a contract paralegal’s hourly wage.
 
I have not personally encountered this in many years; however, I do understand how attorneys could be caught off guard with a paralegal requesting $25 to $75 per hour. I have been fortunate to work with attorneys who realize the value I bring to their firm and do not complain about my prices.
 
But moreover, I follow through and provide that value each and every time. And when they don’t need my services. They don’t pay me. Therefore, they always have an experienced paralegal who is fired up about consumer law when they need us. Not when they don’t. My attorneys do not pay me when they don’t have clients.
 
However, an in-house paralegal paid even at a standard-rate with minimum benefits will likely cost a firm a minimum of $38 per hour. That figure does not include breaks, time at the “water cooler,” or on Facebook, or whatever other normal, everyday minor time-suck that comes up throughout the day that an employer pays for via wages and never gets a return for.
 
Contract paralegals are on the clock only when they are on the case. Additionally, many more paralegals are figuring out ways to charge a flat-rate per assignment. This can often increase the quality of the paralegals work product and keep the costs reasonable and predictable for the attorney.
 
But don’t just take my word for it. Here is the handiest, dandiest labor cost calculator you could hope to find. Just enter a few of your labor costs and it will automatically calculate all the complicated figures. 
 
But before you check that out, make sure you subscribe to the Paralegal Power Periodical. It’s our monthly newsletter that we just started and we have a new edition on it’s way. I am sure you don’t want to miss it. Just click hereto sign up for that.

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