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The way I see it is no lawyer should be making under 100k. There’s UPS drivers, retail managers and fast food managers making six figures. And nothing against any of those jobs, it’s just we went through too much school and the bar and all the bs that comes with it to be making the same as jobs that don’t require a degree.
Supply and demand
When I worked at a firm in Florida, I was billed out at $285 and received a salary of $160k. This was like 8 years ago, too.
Are you not getting health insurance from work? You should be getting that and at least $20-30k more a year. But you’re a first year so your options right now are limited (especially in a smaller market). Grind it out and start looking for other gigs, but expect to be there another year
Pro
Not all small firms offer health insurance. Mine doesn't. I purchase a plan on marketplace and its better coverage than the group polices for cheaper.
Rising Star
Maybe, but if we’re being honest 1st years have never really been that useful (doubly so in an age of AI). Pound for pound, a seasoned paralegal runs laps around them. Keep your head down and grind to pick up needed skills to practice.
Lolll I don’t think clients at an any actual biglaw firms get to do that anymore. If they try that shit our firm simply threatens to tell their auditors that they have unpaid fees and then places a lien on the client.
Multiply 325 by your target then multiply by 33% and you’ll have your answer to get an idea of where you should be at
OP says they collect 80%+ of his work, so even if he doesnt have actual numbers, the collection % OP is aware of is a better assessment than 100%.
It is common practice for attorneys salaries to be approximately a third of their collections.
If I understand what I've read here, you are billed at $325. Your annual billable expectation is about 1600 so your collections are likely about 1280. A third of that would put you at about $138k. I would think in a smaller market it may go down to about a quarter of collections which comes in at $104k.
Yes, I think you are likely underpaid.
Generally yes. I think 85k is really low :/
This seems extraordinarily low even for a small market, particularly if your rate is 325. Get out asap if you can.
My rate is 275/1600 hours and I make 156k. LCOL. You’re underpaid.
Just doing some basic research it definitely seems like you are underpaid. You should definitely be making over 100k. It might be time to start looking and see what else is out there.
Ummm yes… like egregiously so.
I made 45k in ten years ago in my first attorney role. Small firm of three attorneys. In a mid sized city. 65k in 2020 at a similar sized firm.
Yes. However, you're likely in a situation where you are learning a ton and have access to 5 mentors 40+ hours per week. These types of situations can turn into invaluable opportunities if you let them, possibly spring you into entrepreneurship with uncapped income if you look at this in the right way.
What the hell are we even talking about right now. I’m asking if I’m underpaid as an employee trying to do a job. This isn’t a shark tank pipeline program, it’s supposed to be a simple office job.
Pro
I started at a small firm (only 1 attorney) in the same area of practice, in the Midwest with similar population. I started out making less than you but it was almost 6 years ago and covid (plus I had a three year gap after law school) and then I was making exactly what you are making in year 2, again that would have been 5 years ago. I had the same benefits except I made bonuses. The only other difference is that I have no billable requirement and I can technically take as many vacations as I want (which we all know what that means). But I was also being billed at the same hourly rate.
I would say you're about on target, a bit on the low side, but not far off.