Tags: billable hours, what is your hourly rate?
Were I practicing at a big corporate firm, my hourly rate would be about $500/hour by now. Yes, it would cost you $500 an hour for my legal advice. Which is so absurd because I’m only a fourth year associate and I don’t know anything. (The WSJ, in this article, explores the ridiculousness of junior associate rates and the ensuing corporate pushback.)
Anyway, the reality of BigLaw is, if you emailed me, and I responded to your email in my car while navigating the morning traffic on 93N, I’d bill you a quarter-hour’s time. Yup – $125 for an email illegally typed into my iPhone while watching the break-lights in front of me. Corporate law firms are called corporate law firms for a reason: their clients are exclusively (rich) corporations that can afford expensive legal services. In addition, one of the reasons they are paying someone like me close to $500 an hour is that they expect an immediate response to their emails or calls. They are paying me to email them back in traffic.
I won’t tell you what my new billable rate is, but it is quite a bit less. At the same time, I believe it is a fair rate for my level of expertise and experience and service. The upside is that with a lower billable rate, I can actually help individuals, as opposed to corporations. And these individuals have issues that affect their lives and livelihoods — a book they want to publish needs a libel review, a publishing contract needs to be marked-up in their favor, a movie producer wants to buy an option on their book. It feels good to help them. Guess what — I feel like a lawyer!
Am I going to charge these individuals — individuals with whom I have daily personal contact — a quarter-hour’s time just answer an email? Of course not. It’s much less fraught to bill a corporation than an individual, obviously. But at times I also find it difficult to even charge them for my actual time — valuable time for which they should be paying me. Individual clients, it turns out, read their monthly statements carefully and are not afraid to complain about charges. While you may take some sort of professional development class in law school, the whole client-services part of a legal practice is not something for which a standard corporate experience will prepare you. I’m still navigating this transition with some blunders, and I’m sure that where once I erred on the side of billing everything (adhering to the general BigLaw motto of “bill everything and let the partner mark down your time”), now I likely err on the side of not billing enough. It’s not because I don’t think I’m worth it, but more that I feel sorry for the people on the other end getting their bills. (My time does add up quickly!) Would a male lawyer have these reservations, worry about the feelings of his clients? (This actually is a topic of much debate in law-school professional development classes — the “compassionate lawyer”, etc.)
P.S. For those of you as obsessed with billing as attorneys seem to be, my friend MommyEsq., a former colleague who just went in-house, wrote just last week about why she actually misses the billable hour, here.