How is the billable rate for each associate determined at your firm? Does everyone in the same class bill out at the same rate?

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It is funny that none of you know how this is determined. My firm literally is negotiating with me right now to raise my rate. I try to keep my rate low but if I go too low they tell me I can't have a big raise. My collections are already high (3.7 x base this year) so I am generally allowed to do whatever I want. The person in charge of setting the rates at my firm is an admin person but each partner approves their own within reason. Anyone outside of their reccomended range has to get special approval. We are a big firm but it is eat what you kill around here except for massive firm clients controlled by partners in NYC/Chicago/LA. Also, the massive firm clients negotiate special rates that we only renegotiate every 2 years. The pressure to raise our rack rates comes from the fact that those clients don't care about rack rates but want overall discounts. So my rate is high overall but low enough that a 15% discount gets me a meaningful number that I can sell to new clients but doesn't hurt me with the existing massive firm clients.

likesmarthelpful

There are others at my firm that all set their rates high and give massive discounts. Like our tax partners rack rates are 1400 but I see them mostly billed out at 850.

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Location usually has a role.

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It can also vary by matter and group too. I.e. different clients will negotiate different rates, and different groups will charge different rates, etc. It’s hard to know exactly what is going on unless you’ve seen the bills firm-wide or have partner access.

I've heard in lit at least they also bump up your billing rate if you've clerked. Not sure if that's a permanent bump though cause seems weird to bill an 8th year more because they clerked over half a decade ago. (Also this is based on a pretty old source - not sure if it is even true.)

In BF’s first year (2020) at a major lit firm, they billed him as a third year since he did two post-graduation clerkships.

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Many factors. All of the above plus it generally ties into your salary and/or experience and rank.

Per office, per experience, per client.

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EOY review time! Boutique firm with large workload. I’ve signed multiple clients and met my billable requirements in the months I’ve been here. Is a 20k raise request reasonable?

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Some good news after almost 11 months of applying and interviews and lots of rejections finally got an offer! In NYC small firm, ex big law folks, no billable hours, niche practice area, appearance of forwarded thinking firm, remote till who knows when, emphasis on pro bono initiatives and building book of business. The catch salary. Was making around 140k at last firm with 1800 billable. Offer is 85k and revist to bump to around 100k in several months after review (plus discretionary bonus)

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What are the expected billable hours/revenue/analytical requirements for staff at your firm?

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Salary survey:

Base:
Years:
Number of attorneys:
Yearly billable requirements:
Bonus:

When your firm requires billable hours, how are they calculated? Actual vs realized (I.e. what you put on your billing sheet vs what is billed to the client). Does your firm differentiate? Which number do they go by? My mind is somehow not comprehending how some big law hours are under my small firm requirement?

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Bonus Structures:

Looking for a comparison to what other firms are offering and how this one stacks up. Ours is working out a brand new bonus structure:

Our general targets are 75% util. Billable or qualified non-billable time. Bonuses will be $1000 per quarter just meeting that. $25/ hr for every billable hour beyond that on top.

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Tech implementation folks, what is your utilization target (hrs/week)? How many hours do you actually work per week (incl. admin/non-billable work)?

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What do you do to keep hours stable in corporate practice/ ECVC?
Just joined a new firm 3 months ago. Old firm had no billable requirements. 1950 bonus target and have been doing 140-150 each month. I don’t want to ask for too much work but also concerned not hitting hours… any tips?

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That moment when your "smart" plan to boost your hours this month by working the Labor Day weekend (thus turning down all the fun plans your friends made) becomes sitting on your hands & feeling dumb because all the partners are too busy to delegate anything. The worst kind of "off" day is one you planned to /wanted to work, but there's no billable work...

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Partners or whomever can help me understand about billing and hours. To keep things simple, let’s say you only have one staff to work 1,700 billable hours a year on a $60k salary and you have only one job that and the rate charged to the client is $300/hour and an projected hours budget of 1,700 hours. So ideally you would have revenue of $510k. If the staff takes less time partners make less money and if they take more time partners make more money while the staff keeps the same salary?

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I’ve worked the last nine years for my state legislature as an attorney analyst, drafting and analyzing proposed legislation. I’ve primarily worked on health professional regulations. Next year, I will apply for student loans forgiveness under the public service program and would like a change. I know others who have gone into lobbying/government relations, but I would like to find other options to pursue. I’ve never done billable work so not sure if law firm life is for me. Any suggestions?

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Do your firms have a billing code you use if you don’t get enough billable hours in the day? Like say you only billed 6 hours one day. What do I do about the other 2 hours?

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Are utilization targets (%) always based on 40 hrs/wk, I.e 90% utilization = avg 36 billable hrs/wk?

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What are your current billable hours and salary? Is anyone actually on a good ratio with this - would love to hear

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Ok, maybe this has been done before, but I want to get a real life sense of the difference between EPLI and Private L&E (management side) practices. Let's do a poll:

1.) Primary source of business: EPLI or Private Companies?

2.) Number of matters you are currently working on

3.) Average billable rate (your year)

4.) Normal working hours/wk

5.) Percentages: Litigation vs Counseling

6.) Type of firm: ID, Big 4, Boutique, BigLaw, etc.

I'll kick things off in comments.

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I started at a new firm this year in January. I had a billable goal that was given to me mid year of around 1750 house for the year. I am nowhere near that and definitely will not meet the goal. I had so many non billable hours I was forced to take when I first came in. I worked my ass off in busy season. At my previous firm I never fell short of hours as it was B4. This firm is mid sized and more focused on WLB. My question is how bad do you think this will affect my comp??

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So, I'm happy at my current job and have been there about 18 months. Our pay is probably 15% below market (AmLaw 100) but so are our billable requirements. An interview for another firm kind of fell into my lap, and I'm debating whether to take it just for the sake of seeing what market really is. Is there something shady about interviewing somewhere you're not totally committed to accepting an offer from?

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What's up everyone? I saw a salary survey posted earlier. What do y'all think I should make at a litigation boutique that handles primarily business litigation on a contingency fee? No billable hours.

Question re: salary. I’m thinking about accepting an offer at a small (4-6 attorneys) transactional firm. I would primarily be working on NDAs for clients. The role sounds great (no billable hours, fully remote, flexible hours/ can work from anywhere); however, the salary is $70K. I’m a new attorney, with only one year of experience. Does this salary seem low? If so, any advice on what someone in my position should ask for?

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Did the billable hours bonus not get paid out today? Or is it to be paid in the next check?

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Let’s see a Starbucks barista top that!

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After going full WBS I’ve returned to you all, where I’ve actually made money following your good ideas

Keep em coming I appreciate you all

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Anyone know a firm that’s still taking the ride share arbs (workers being misclassified as independent contractors)? I have approx 150 potential clients and have no home for them. States include IL, MA, CA, NJ, and NY. Called LLR in MA but they aren’t calling me back. 😑 Would love to refer these people to someone. Thanks in advance! 🚗

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Looking for some perspective in negotiations.

2nd year at midsize firm making 150k with 1700 billable hour requirement.

Got an in house offer at global company for 130k, $5000 signing bonus. They know I make 150k.

What’s the appropriate counter offer? Don’t want to be offensive because I really want this job, but also want to look out for my best interests. Boston market, IP counsel position.

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My lease ends March 1 of next year. Do you think there will still be deals on apartments in the city then? Considering asking to break my lease. Prices are too great to give up right now

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I've been noticing a new trend in biglaw passive aggressiveness: Adding a question mark to a non-question when you're following up on something. E.g., "Hi X, just wanted to check in on Y as the client would like to see a draft as soon as possible? When can we expect this?"

And to the people who do this... why?

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I know this is the millionth time it’s been asked but how fracking long does a background check and conflicts take!???

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Do your firms have a billing code you use if you don’t get enough billable hours in the day? Like say you only billed 6 hours one day. What do I do about the other 2 hours?

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Has anyone billed less than 1000 hrs as a first year?

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So, I'm happy at my current job and have been there about 18 months. Our pay is probably 15% below market (AmLaw 100) but so are our billable requirements. An interview for another firm kind of fell into my lap, and I'm debating whether to take it just for the sake of seeing what market really is. Is there something shady about interviewing somewhere you're not totally committed to accepting an offer from?

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