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L&E at most firms is a low margin practice. Most groups will have one partner and many associates.
We make 10-15 new partners a year and 2-3 are typically L&E. It’s a large but largely legacy practice at my firm and not a significant profit source for us. I think the firm is happy to make new L&E NEPs because they’re not going to get equity and their salaries are slightly above senior associates.
A partner told me I have a good shot at NEP, but it doesn't sound like a good deal to me.
There are at least 3 different worlds of L&E and it depends which you’re asking about. First, the elite truly L&E firms. They pay market and do traditional labor and litigate the more noteworthy L&E matters (Proskauer, Gibson Dunn, Jones Day, NOT Paul Hastings [anymore]).
Then there are the EPLI firms. They are cut rate firms that need to charge fees low enough such that EPLI carriers will hire them. They do real L&E work but few if any pay scale. These firms are like Ogletree, Seyfarth, Littler, Jackson Lewis, etc., and I would submit that there are tiers within that group.
Then there are firms that keep L&E as a transactional/value add service, and one and awhile they’ll do some noncompete litigation, or an investigation. I don’t think they do real L&E work. They are not routinely defending employment cases; their existence is tethered to value they add to coprorate practices.
The answer differs depending on the world you’re talking about.
This could be a really long discussion.
MLB goes in world 1. They pay scale and do the more high-stakes L&E work. They’ve had a couple (maybe more) NLRB members join recently.
Are you thinking of switching practice groups and if yes how will you do it? I’m in a similar situation (diff practice group) where I’m thinking of pivoting due to limited partnership prospects.