I love doing contract paralegal work; it gives me the opportunity to learn and work in different areas of the law.
If you have decided to take the plunge into the legal profession as a contract paralegal, now what?
Based on my experience of working as a contract paralegal for the past 13 years, I would like to discuss some tips with you on how to get started and other things to know.
What is a contract paralegal?
A contract paralegal (or freelance paralegal) is a paralegal who works on a temporary or as-needed basis for an attorney or law office.
A contract paralegal cannot work directly with the public; under California law, paralegals must work under the direction and supervision of an active member of the State Bar of California, or an attorney practicing law in the federal courts of this state.
It is important not to confuse a paralegal with a Licensed Document Assistant (LDA). LDAs were formerly known as Independent Paralegals, but unlike paralegals, LDAs are authorized by law to provide legal document preparation services to consumers, after complying with registration and bonding requirements.
Neither paralegals nor LDAs are permitted to engage in the practice of law.
Independent contractor vs. employee
In California there is a rebuttable presumption affecting the burden of proof that a worker performing services for which a license is required pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, or who is performing such services for a person who is required to obtain such a license is an employee rather than an independent contractor.
| Employee | Independent Contractor |
| You are paid by the hour | You are paid by the job |
| You work full-time | You set your own work hours |
| You are closely supervised by the company | You provide the tools and equipment needed to do your job |
| You received training from the company | You work for more than one company at a time |
| The company provides the tools and equipment | You pay your expenses |
| The services provided are an integral part of the company’s business | You pay your own assistants and employees |
| You are permanent | You operate truly an independent business |
The Internal Revenue Service (IRS) follows common law rules, sorting into three categories:
- Behavioral Does the company control or have the right to control what the worker does and how the worker does his or her job?
- Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
- Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
How to get started
Before becoming a contract paralegal, I worked in a law office. The experiences I gained in the office have been invaluable and have given me a better understanding of how a law office runs efficiently and, in some cases not so efficiently. It is important to build a strong network of clients and resources before you take the plunge.
First things first
What do you want to do? What areas of law do you want to work in as a contract paralegal? What areas of law do you have experience with? This decision will drive how you market and your hourly rate.
Workspace and equipment
Are you going to rent office space or work from home? If you are working from home start up costs are relatively low as you will only need space, computer, desk, printer and Microsoft Office.
A dedicated office space is important to not only maintain confidentiality, but also to set healthy work boundaries (discussed more later).
My desk and filing cabinets were purchased from secondhand stores for less than $100 (they were not very pretty, but they were functional). Of course, you will need a computer and at the very least Microsoft Word.
I purchased a subscription to a forms program, but cancelled during the free trial period when I realized that unless the attorneys I was working for had the same program they could not edit the forms.
Online research programs can be expensive, so look for a membership at a law library. Most law library memberships come with online research tools such as Lexis or West law at a fraction of the cost.
Find clients and market yourself
Join local bar associations and local paralegal organizations and make friends with the local law librarian. When I was first getting started, I reached out to attorneys I knew and sent marketing letters to members of the local bar.
All the clients I currently have came from the recommendation of attorneys I work for, job postings through the local paralegal organization and from the local law librarian.
Don’t overlook the larger firms. While all of my current clients are solo practitioners, I have done some overflow work for larger laws firms on as needed basis.
Billing
When I first started and only had a couple of clients, I kept my time on sticky notes stuck on my desk. Clearly, this was not very efficient, and I failed to capture all of my time.
I moved to handwritten timesheets and once a month I would create Excel invoices. Still not very efficient.
As my business increased, I found an accounting program that worked well for me. I still use handwritten timesheets for smaller time increments such as responding to emails or telephone calls, but for larger projects I use the timer feature of my accounting program.
Remember if you do not record your time, you will not get paid for your work! Find what works best for you.
Some contract paralegals will bill per project; I personally bill hourly, but that’s up to you.
How much you charge will depend on several factors:
- The average rate for contract paralegals in your area. If you know other contract paralegals, ask how much they charge. Look at the average wage for paralegals in your area and adjust your rate knowing that you will not be receiving benefits, worker’s compensation and the attorney will not be paying taxes or other costs associated with an employee, including equipment.
- How much experience do you have in the area of law. When I was starting out as a contract paralegal and assisting in new to me areas of law, I charged less for the first couple of months with the understanding that my rate would increase as my knowledge increased.
- Turn around time. What is your average turnaround time for completing a project? One week, two weeks? Make this clear with the attorney who hires you and stick to those deadlines. What about emergencies? My motto – Your emergency is not my emergency unless you pay me to make it my emergency. It may sound harsh, but keep in mind if you need to drop everything to accommodate an emergency for another attorney, you still have other deadlines to meet for your other clients which means longer hours for you.
For a discussion on the pros and cons of being a contract paralegal, see another blog published by One Legal.
Tips for working as a contract paralegal for a healthy work-life balance.
Define your workspace
My home office is where I work, and I only work in my office. I am fortunate that my office is not in my living room or bedroom.
If your office shares space with another room in your home, invest in a screen to screen off the space when it is not office hours.
If your office space shares space with another room be sure to protect client confidentiality.
Create a morning routine
Whether you work from a home office or an office outside of your home. You are your own boss and can work when you want. I am a morning person and am usually in my office by about 4:30 a.m.
This gives me time to get caught up on emails and work on projects without interruption for a few hours. Usually around 7:00 a.m., I exercise and eat breakfast before heading back to my office.
Set a work schedule
I find that on many days I will spend 10 or more hours in my office. Setting a work schedule not only will help prevent burnout, but it will allow you to focus on work, increase your productivity, and set boundaries.
Give yourself breaks during the day and go for a short walk or spend time outside.
Organization is key
When you are working for several attorneys on several projects, organization is key. Find what works for you. For me, I have a large whiteboard I update weekly with projects and due dates.
I also keep both an electronic calendar and a paper desk calendar with appointments and due dates color coordinated for each attorney.
Set boundaries
This not only applies to letting the attorneys know your work hours, but it also means knowing your limits and being realistic about how much you can take on.
Conclusion
Working as a contract paralegal can be a rewarding and challenging career that comes with both advantages (flexible schedule, being your own boss, and setting your own rates) as well as disadvantages (not having health insurance or other benefits, having irregular income, and being responsible for all your own marketing and business expenses).
Contract work is not for everyone so before you make the decision to work ass a contract paralegal, be sure to weigh the pros and cons.
If you do decide contract work is right for you, enjoy the freedom and flexibility of being your own boss.
