At the risk of getting trolled for a stupid question, but have heard a complaint from Non-Equity new partners about this and curious what the deal it. Non-Equity partners, through salaried employees, I heard the are expected to make capital contributions as well? Is this true? Would not seem to make sense.

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Not for my firm. That would have been a hard no from me.

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There are so many other reasons to troll you, no reason to worry about whether the question is stupid.

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I don’t think that’s generally true, but might be the case at some firms. Probably significantly less than equity partners.

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With us the non-EPs are partially paid in contributions to the firm.

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NEPs at my firm make a contribution and get a cut of profit, but it’s much smaller than EPs and they are still treated as W-2 employees. It seems to be a mixed bag in terms of whether firms treat this type of NEP as a W-2 employee or K-1 partner. Duane Morris goes the K-1 route and was sued because of it. I think that case is still pending.

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