Is there a general standard of rule of thumb for associate comp outside of biglaw’s fixed scale? E.g., x% of expected billings, or y% of a contingency fee goes to associate bonuses? How do things work at your small-law firm?

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I previously worked at a civil rights firm in a fairly large metro city. I started at 50k plus benefits, with 20% of any fee for referrals I brought in (regardless of size), plus generous bonuses (sometimes exceeding my salary) based on how well the firm did that year. Very equitable. After a year as a partner at the firm, I just started my own practice and plan to pay any future associates we take on in a similar manner.

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Ideally, the associates in my firm generate fee income equal to 2x overhead and get compensated at 1x. In other words, if an associate bills $300k of collected fees, I pay her/him $150k. I was trained many years ago that the firm should keep 2x overhead and pay the associate the dollars above that number but it simply isn’t feasible in a small firm - if you care about and want to retain good people.

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In our firm, and I suspect a lot of smaller firms, salaries are negotiated with the associates, and the partners are receptive to arguments that salary should be raised. Partners don't want to pay more than they have to, but if an associate thinks they are worth more, they can say so.

Generally, I negotiate my salary based on traditional salary formulas (i.e., for every dollar billed, 1/3 to the biller, 1/3 to the person who brought in the work, and 1/3 to the firm).

Low starting salaries are normal, but so are 10-20% raises year over year if you demonstrate your worth.

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The last small firm I worked paid a flat salary of $50K with benefits, no raises. Bonuses were sporadic and celebratory so there was nothing to reliably achieve them, maybe upwards of 5-10% of my salary each year.

There was no fee sharing. All clients were contingency and the owner would keep the bulk of fees to himself even if he had no involvement in the case, at least, comparing his lavish lifestyle against the rest of the office.

With some small firms they may be more generous and structured, but for most it’s the Wild West when it comes to being paid.

Same - bring in big fees and maybe get a crumb....few incentives aside from internal drive for greatness / gain experience to switch camps / one day be in position to pile the cash and give healthy bonuses to hardworking associates who bring in big results rather than treat them like peons

I used to work at a small firm. $100k salary. Health insurance, 401k etc.

If I brought in a 5 figure flat fee I would get 20% of it.

No holiday bonus other than maybe a $250 gift card at the holidays.

Gas and tolls on the firm credit card.

Remember the golden rule- you are worth what someone’s willing to pay you. Coming up with numbers in your mind about how much you “should” be making is a dangerous game to play.

I've seen people severely underpaid for years who ask for raises with no response. They have left, gone out on their own, and made three fold their prior salaries in their first year working half the hours. And their firms haven't been able to replace them with anyone who can do their level of work at their speed. The issue with saying someone is worth what another person is willing to pay is the assumption that the person paying has accurately valued the person working for them. Most of the time, they haven't.

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