Legal Services as an Employee Benefit: A Complete Guide

When your employees face legal issues—from buying a home to creating a will—they often struggle to find affordable, quality legal help. As a business owner, you might not realize that offering legal services as an employee benefit can solve this problem while boosting your company's appeal to current and prospective employees.

What Are Legal Services Plans?

Legal services plans are employee benefits that provide access to attorneys for personal legal matters at reduced or no cost. Think of them like health insurance, but for legal issues. Employees pay a small monthly premium (or the employer covers it) and gain access to a network of qualified attorneys who handle various legal services.

These plans typically operate as voluntary benefits, meaning employees choose whether to participate and usually pay the premiums through payroll deduction. However, some employers cover the cost entirely as an additional perk.

How Legal Services Benefits Work

The process is straightforward for employees. When they need legal help, they contact the plan provider (usually through a phone number or website), explain their legal issue, and get connected with an appropriate attorney from the network. The attorney either handles the matter completely under the plan's coverage or provides initial consultation and discounted rates for additional services.

For covered services, employees typically pay nothing beyond their monthly premium. For services that aren't fully covered, they receive significant discounts—often 25-30% off standard attorney fees.

What Services Are Typically Covered

Most legal services plans cover common personal legal needs that employees regularly face:

• Estate Planning: Will preparation, living wills, power of attorney documents
• Real Estate: Purchase and sale document review, landlord-tenant issues, mortgage document review
• Family Law: Divorce proceedings, child custody matters, adoption assistance
• Consumer Protection: Contract reviews, warranty disputes, identity theft assistance
• Traffic Issues: Moving violation defense, license suspension matters
• Financial Matters: Debt collection defense, bankruptcy consultation

The key advantage is that employees get professional legal guidance for issues they'd otherwise handle alone or avoid entirely due to cost concerns.

Why Employers Offer Legal Services Benefits

Legal services plans help employers in several important ways. First, they're a relatively inexpensive benefit that employees highly value, making them excellent for recruitment and retention. When job candidates compare offers, unique benefits like legal services can be the deciding factor.

These benefits also reduce workplace distractions. Employees dealing with legal stress often struggle with productivity and may need time off for attorney meetings. When they have easy access to legal help, they resolve issues faster and with less workplace disruption.

Additionally, legal services plans demonstrate that you care about employees' overall well-being, not just their work performance. This builds loyalty and improves company culture, especially important for smaller businesses competing with larger companies for talent.

The Employee Perspective

From an employee's viewpoint, legal services benefits provide peace of mind and significant cost savings. Many people avoid addressing legal issues because they assume attorneys are too expensive or don't know how to find qualified help.

With a legal services plan, employees know they have professional support available when needed. Whether they're buying their first home, dealing with a family matter, or facing an unexpected legal challenge, they can get expert guidance without worrying about overwhelming costs.

The convenience factor is also crucial. Instead of researching attorneys, reading reviews, and making multiple calls, employees simply contact their plan provider and get connected with pre-screened professionals.

Key Considerations for Implementation

When evaluating legal services plans, consider the provider's attorney network size and quality. Ensure they have sufficient coverage in your area and attorneys with expertise in the services your employees most likely need.

Review what's fully covered versus discounted, and understand any limitations or waiting periods. Some plans exclude pre-existing legal matters or have caps on covered hours for certain services.

Consider whether to offer this as a voluntary benefit (employee-paid) or employer-sponsored benefit. Most small to medium businesses start with voluntary plans to control costs while still providing value.

How Benton Oakfield Helps

Implementing legal services benefits involves comparing providers, understanding plan details, and ensuring employees understand their new benefit. At Benton Oakfield, we handle this complexity for Long Island businesses, from initial plan selection through employee education and ongoing support.

We help you evaluate which legal services plan best fits your workforce and budget, then ensure your employees understand how to use their new benefit effectively. Learn more about our comprehensive benefits consulting services and how we make employee benefits work better for both employers and employees.

Ready to explore legal services benefits for your business? Contact our team today to discuss options that fit your company's needs and budget.

Compliance Note: Benefit plan rules and tax implications vary based on company size and location. This guide is for educational purposes only. Please contact your Benton Oakfield representative to discuss how this applies to your specific situation.

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