BigLaw firms are reportedly billing second-year associates at nearly $1,000 per hour, according to a recent review of bankruptcy fee requests by Law.com. The review found that Paul, Weiss, Rifkind, Wharton & Garrison charged $995 an hour for a second-year associate, making it the highest rate billed for that level of experience. Sullivan & Cromwell followed closely, billing $960 an hour for its second-year associates.
The review was prompted by a tweet suggesting that a second-year associate at Kirkland & Ellis was billing $1,035 an hour in a bankruptcy. However, Law.com discovered that the lawyer was a fourth-year associate previously admitted elsewhere.
Other BigLaw firms have also been found to be charging $1,000 per hour for associates, though they typically have between three and five years of experience. These firms include Latham & Watkins and Weil, Gotshal & Manges, and Skadden, Arps, Slate, Meagher & Flom, which reportedly charges over $1,000 an hour for its senior associates.
Interestingly, $1,000-an-hour billing rates were previously associated with top partners at BigLaw firms in 2007. The recent trend of high billing rates for junior associates is somewhat unprecedented and has raised concerns among some industry observers.
While the high billing rates may seem excessive, they do not necessarily indicate large salaries for second-year associates. Many associates work long hours, have high levels of student debt, and may not necessarily see significant increases in take-home pay despite the high billing rates.
Furthermore, the complexity of the work involved may justify the high billing rates. Bankruptcy cases, in particular, can be extremely challenging and time-consuming, requiring significant expertise and attention to detail. In some cases, the high billing rates may reflect the value these associates bring to their firms and clients.
Despite these justifications, however, the trend of high billing rates for junior associates will likely continue to generate controversy and debate. As the legal industry continues to evolve, it remains to be seen whether these rates will become the norm or be seen as an anomaly in an otherwise rapidly changing landscape.