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Five Ways Lawyers Subsidize Legal Aid


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How Lawyers Subsidize Legal Aid
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Lawyers are paid to do legal aid work. But, lawyers also support legal aid, individually and collectively, by contributing funds or services to make the legal aid system possible.

Work for Less Pay
When private practice lawyers work for legal aid clients and are paid on an hourly basis, they are paid at an hourly rate that usually works out to be between one-third to one-half less than what they are paid when they work for other clients. 

Work for No Pay 
When private practice lawyers work for legal aid clients and are paid on a block fee basis — $x for a particular legal procedure — they complete the task regardless of the time it takes. Usually, this means that they are providing services for free.

Hold Backs = Reduced Pay 
In some jurisdictions, the legal aid plan does not pay the full tariff amount owing to a lawyer who has done work for a legal aid client. Instead, the plan “holds back” a percent of the amount, sometimes paying part or all of it back at the end of the year.

Dollar Contributions to Legal Plans
Lawyers are required to put money they are holding on behalf of all their clients in trust accounts. In several jurisdictions, some of the interest earned on the money held in these trust accounts is contributed to the legal aid plan. This amounts to a cash contribution of millions of dollars.

Volunteer Work to Support the Legal Aid System
Across the country, lawyers sit on committees and assist in the administration of legal aid plans on a volunteer basis.
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