Yet, will the gig economy model work in the legal industry? I believe this can work despite all the challenges and that lawyers should reflect on the fact that the gig economy model may well be in their future. “At the beginning of the pandemic, many of us wondered if this was the death knell for Uber and Lyft. If their business model failed, what would it mean for application-based on-demand work? ” said Tia Koonse, chief of legal and policy research at the University of California, Los Angeles Center for Labor. “It looks like it`s a model that`s going to stay here.” The “gig economy” has been a hot topic in recent years thanks to its constant growth. In fact, self-employment – which drives this growth – contributes $715 billion a year to the economy. Non-traditional work arrangements are driving the gig economy, and from there, everything is on the rise. In fact, according to a study by Intuit Inc., 7.6 million Americans will work in the gig economy by 2020. And it`s no wonder the gig economy is on the rise, as it`s just as good for employers as it is for employees. This model must be requested by law firms; Fortunately, there are two areas where a version of the gig economy has already taken hold: The gig economy has exploded in recent years with the rapid expansion of companies like Uber, Doordash, and other direct-to-consumer businesses. It`s a business model that`s particularly attractive to many companies because: The gig economy faces another year of upheaval as the Biden administration considers measures to uphold workers` rights, court battles continue across the country, and more states face ongoing disputes over drivers` employment status. “While independent contractors play an important role in our economy, in many cases we have seen employers misclassify their employees as independent contractors, particularly among the most vulnerable workers in our country,” Labor Secretary Marty Walsh said in a statement.

Every day we see many examples of the gig economy in action, from Uber to Instacart, but would it work in the legal industry? Not only does this result in higher taxes for those working in the gig economy, but it can also create confusion for workers, who may not understand their reporting and tax obligations or how to properly deduct expenses from their taxable income, resulting in an overpayment. Using a gig economy workforce to build or grow your business gives you additional flexibility and scalability, which is why more and more companies are now retaining non-employees as independent contractors to run their businesses. But this model is often attacked – making proper classification of your workforce essential. Equally important is the willingness to defend such an attack during litigation or government investigation. With so much at stake, you need a modern law firm at the forefront of the gig economy to meet your employment law needs. “The usual tactics of union organizers don`t necessarily work in these gig economy situations,” O`Mara said. “I think we will see more effective and ultimately more sophisticated tactics from the workers themselves and more attention to their movements.” However, as in many fields, proactively developing legal relationships can save a lot of money in the long run. For example, many gig workers form limited liability companies without understanding the implications of what kind of liability is blocked by such an entity and which is not. Often such an entity is not needed at all or is not used properly. As profits increase, the business owner may need to interact with the establishment of employment or partnership relationships and take other tax planning considerations.

Popular areas of expertise that are typically in demand when using legal projects are: litigation; Due diligence; internal investigations; contract management; patent valuation and portfolio analysis; and compliance programs around employment law, corporate governance, cybersecurity and data protection. There must be a supply of legal suppliers for an on-demand economy model to work in the legal field. Yes, it appears that there is a potential pool of willing lawyers, and two factors influence this situation: The same is not true for document reviews and legal outsourcing, which have little or no interaction between the firms and the lawyers who do the work for these firms. The economics of law firms and lawyers working in an on-demand economy model will be challenging and will present some barrier to entry. There will be costs, some of which will be significant, to operate an on-demand economy in the legal field, and some of these costs are evident – such as additional investments in new or improved technologies and the additional training that will be required to ensure that all participants understand the policies, processes and use of required systems. To account for the changes resulting from the gig economy, some commentators have been suggesting for years that there must be a new category of workers who are neither employers nor “workers” in the current sense of the term. Others suggest that worker protection should also be extended to contractors in order to encourage greater flexibility in “working methods”. Law firms must ensure that issues such as conflict of interest management, quality control and review, and the management and retention of work results are addressed. In addition, relevant legal research and other systems must be in place. Security and system access must also be taken into account and will be difficult when on-demand workers enter and leave a company`s environment. In addition, businesses need to innovate how billing works, and they may need to realize that the traditional hourly billing model may not be the best approach.