I think my firm is overbilling for me. First year associate at a five lawyer firm, $325/hr in a midwest city population 200k, none of my time entries are reduced or removed before invoices go out to the clients. Thoughts?

likefunny
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You’re overthinking this.

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lol you think they’re over-billing just because they don’t write off your time?

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Your lower rate reflects your experience. In any event not something for you to worry about for many years.

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Why does the rate seem high? It’s all relative, man. First years in biglaw are being billed out at $1k+. If clients are paying it, who am I to complain about it being overbilling?

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First year associate with no clue about law firm economics thinks he's uncovered an overbilling conspiracy straight out of The Firm.

But in seriousness, please don't be anxious about this. Sounds like your firm is doing OK despite being in a small town.

likefunny

Update: firm security took me to a desolate park, made veiled threats, and suggested my wife gets excited for her Sharper Image catalogue.

likefunny

My firm does not cut either. I know it’s not the norm for a lot firms but not unusual. Also unless you’re a partner who negotiates fees with the client I would not insert yourself into that aspect of the firm

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Are your basically saying you don’t think you’re worth what you’re being billed out for?

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Check your local Rule 1.5(a):

The factors to be considered in determining the reasonableness of a fee include the following:

(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;

(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

(3) the fee customarily charged in the locality for similar legal services;

(4) the amount involved and the results obtained;

(5) the time limitations imposed by the client or by the circumstances;

(6) the nature and length of the professional relationship with the client;

(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and

(8) whether the fee is fixed or contingent.

But to me $325/hr is on the low end, no time cut sounds like you’re a competent biller. I represent small law firms as outside General Counsel, feel free to shoot me a DM if you’d like to chat about it.

likehelpful

National average is $313/hr, this is a good resource: https://www.attorneyatwork.com/solo-and-small-firm-lawyer-hourly-rates/

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If clients are paying without complaining, seems like what the market will pay for you. If there’s pushback or unhappiness, your firm would probably cut your time. They’ve had those relationships and been doing this long enough, they probably have a good sense of what’s reasonable and what should be cut.

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You're not paid to take money out of the firm's pocket. Also, if they bill it counts towards your hours. You need to be silent.

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Why are you worried about this despite lacking any appropriate basis for questioning it?

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Think of the bill as a flat fee based on prevailing market rates in which you need associates to rack up hours in order to hit the flat fee. If you come in under the flat fee you may cause the partner to be less profitable because the partner can’t point to the hours as a reason to charge the market rate amount but if you go over your work can be an excuse to raise rates and allow the partner to be more profitable. There is a limit to this, of course, but billing hours is not a bad thing.

No dumb questions — but you owe it to others to think hard about things before asking for an answer. Don’t ask them to connect dots for you unless you’ve sincerely tried already. It will make you seem slow, lazy, and intellectually incurious

Apply this to your practice, too

Not your problem

First years at v10 firms cost are billed at 1000+ an hour

That is not “overbilling.” Some paralegals bill that, depending upon the region and practice area.

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