I run a boutique firm but before that was in house and I don’t understand minimum billable hours. Can someone please explain why the partners hold attorneys accountable for failure to give them work? I require my staff to get the work done timely and effectively but I also know what business there is and when we’re slow I don’t punish them for my failure to give them work.

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In big law, there is rarely a shortage of work, particularly if you do good work. If there is a slow down in your practice group, you could do some pro bono work or write an article to get more hours. Alternatively, you could enjoy working a bit less and accept that your bonus will reflect that.

smarthelpful

But at most firms what you listed isn’t billable.

OP - you realize most “partners” at law firms don’t understand the terms of their investment? These are hands down the worst business people on the planet. Because they don’t understand the terms of their investment or how their business runs, they make terrible business decisions.

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Also OP. Good on you for understanding that the firm is your business and for running it well.

If there isn't enough work, then typically the only "consequences" are missing out on bonus. The real concern arises when someone is underperforming compared to their peers. When that occurs, it usually is due to some fault of the attorney. Any decent firm will work with the attorney, but sometimes the answer is simply that people are not assigning them work because the attorney's work product isn't meeting expectations. Then, it's held against them.

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Do you pay “your staff” a fixed salary or variable based on what work comes in?

If a fixed salary, there is a minimum number of hours they need to meet to keep the lights on per basic economics.

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P1, you see all employees as an individual P&L.

OP sees his business as a P&L.

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OP, I also am in a small firm and understand your point about lack of work shouldn’t penalize your associates. We have lowered our requirements but still talk about hours because we find people stop keeping careful time records without the outside pressure. They get the work done but they don’t record the time at all or don’t record it accurately. We get paid by our hours billed so having accurate time records is important.

smart

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