junior associate attorney how billable

To achieve 2,200 billable hours, an associate would work from 8:00 a.m. to 8:00 p.m. each day, added to two Saturdays per month from 10:00 a.m. to 5:00 p.m., which still would leave the associate a bit short. So add another Saturday for 10 months. That gives the attorney 2,201 billable hours.

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How to succeed as a junior associate?

To achieve 2,200 billable hours, an associate would work from 8:00 a.m. to 8:00 p.m. each day, added to two Saturdays per month from 10:00 a.m. to 5:00 p.m., which still would leave the associate a bit short. So add another Saturday for 10 months. That gives the …

How do you calculate billable hours for an associate attorney?

 · Making the most of your time. 1. Be Descriptive. Time sheets are your opportunity to show the client and billing partners what they are paying for, so your time sheets should …

What is the minimum associate billable hours expectation?

 · Winning as a junior associate requires much more than sheer legal ability. It also includes a variety of more mundane factors which govern how well you adapt to life in the …

What are senior associates really worth at top law firms?

Billing practices vary significantly from firm to firm and client to client. Knowing your firm’s and client’s billing rules is critical to learning how to bill. For example, some clients won’t pay for: …

What does 2000 billable hours look like?

For example, if you want to reach a goal of 2,000 hours annually, you would need to bill for roughly 40 hours each week, or eight billable hours a day. You may not work exactly eight hours each day, but this breaks down what you should average in a day, week, and month to reach your annual goal.

How do you calculate billable hours for a lawyer?

Calculating billable hours is straightforward: you take how much you've worked and multiply it by your hourly rate.

How many hours a month should I bill?

A realistic billable hours minimum I think, in a small-firm retail practice involving lots of clients getting billed each month, that you should expect a minimum of 100 hours per month (annualized) in billable work.

How many hours a day should you Bill?

The most basic magic number is the 40 hour work week. This one likely doesn't need much description for where it comes from. It's eight billable hours in a day, five billable days a week.

What percentage of hours should be billable?

For most service companies, 30 percent is considered a good efficiency rate, while 50 percent would deliver extremely efficient employee costing. That means out of eight hours, if a technician does approximately 2.4 hours of billable work per day, the billable hour percentage averages 30 percent.

How do I calculate my billable rate?

One way to calculate a bill rate is to use a pricing multiplier. Start with the base salary of an employee, $80,000 per year. Divide that by the number of work hours in a year, which is about 2080. This results in an hourly rate of around $38.50.

Is 200 billable hours a month a lot?

200 hours is a fairly heavy month. For me, that would mean being at work about 50 hours a week - 8 to 6, and probably one weekend day or a couple of evenings amounting to 4 or 5 hours. Getting to 200 might be easier depending on the number of weekdays in the month.

Is 2400 billable hours a lot?

Assuming the billable hours are “on the up and up”, a 2400 hour/year biller is routinely working on client matters well past the dinner hour. In fact more than routine, as an absolute necessity a 2400 hour biller is working on legal issues every night after he has already worked eight full hours.

How many billable days are in a year?

260 working daysThere are in total 260 working days in a common year.

How much does an attorney charge per hour?

Throughout the United States, typical attorney fees usually range from about $100 an hour to $400 an hour. These hourly rates will increase with experience and practice area specialization.

How do lawyers bill their clients?

For the most part, lawyers charge for their time based on an hourly rate. So, they take the amount of time it takes for them to complete a task on your matter and then multiply it by the hourly rate.

How do you bill time in a law firm?

Unless someone told you otherwise, bill all the time you spend on a task, even if you know some of it will be marked down. At most firms, you will still get credit toward your billable hour goal for all the time you enter into the firm's billing software, even if not all of that time is billed to the client.

How many hours can an associate work?

To achieve 1,800 billable hours, an associate would work her “regular” hours plus an extra 20 minutes Monday through Friday, or work one Saturday each month from 10:00 a.m. until 5:00 p.m. The first option would give an attorney 1,832 billable hours, with a total of 2,430 hours spent “at work” (AKA: including performing non-billable activities.).

How many hours does an attorney spend?

How many hours do 1,892 hours take up a young attorney’s life? Yale Law developed a chart that gave reasonable amounts of actual time spent for 1,800 billable hours and 2,200 billable hours. The chart accounts for vacations, coffee breaks, conference times and even chit-chat – all those activities that take up an attorney’s time but are not billable.

Does a junior associate have to maintain a schedule?

So the answer to that question of longevity – in terms of keeping up with a big law schedule – is that the junior associate must maintain the schedule throughout her career.

What is the first order of business when deciding to work for big law?

Adam Pascarella, in an article offering advice to junior associates, listed determining your goals as the first order of business when deciding to work for big law. There are a couple of scenarios. If she plans to stay and make partner, then she must go above and beyond the required billable hours in addition to out-performing in other law firm areas. Furthermore, the hours only get longer as she moves up the ladder to partnership status.

How long do you have to wait to let an associate go?

If within three to six months the associate is not on track, they may be let go.

How many hours do first year associates need?

But the average number of billable hours required for first-year associates at firms with more than 700 attorneys is 1,930 hours. The lesson is that if a first-year associate is going to play, (s)he’s going to have to really knock it out of the park as far as meeting the required hours.

Do first year associates count billable hours?

First-year associates will probably count billable time instead of sheep while trying to fall asleep. It’s just not something that will go away and quite possibly haunts the minds of several newly minted attorneys while trying to get a good night’s rest. But the hoops of billable hours are manageable. A first-year associate just has to decide in the beginning how much the chase for the golden ring is worth, and go from there.

What is the lesson of first year associates?

The lesson is that if a first-year associate is going to play, (s)he’s going to have to really knock it out of the park as far as meeting the required hours.

How long do you have to wait to let an associate go?

If within three to six months the associate is not on track, (s)he may be let go.

Do first year associates count billable hours?

First-year associates will probably count Billable Hours instead of sheep while trying to fall asleep. It’s just not something that will go away and quite possibly haunts the minds of several newly minted attorneys while trying to get a good night’s rest. But the hoops of billable hours are manageable. A first-year associate just has to decide in the beginning how much the chase for the golden ring is worth, and go from there.

How many hours do you need to be a first year associate?

According to the National Association for Law Placement, the average number of billable hours required from a first-year associate is 1,892 hours for the latest year listed, which is 2016. But the average number of billable hours required for first-year associates at firms with more than 700 attorneys is 1,930 hours.

Does a junior associate have to maintain a schedule?

So the answer to that question of longevity – in terms of keeping up with a big law schedule – is that the junior associate must maintain the schedule throughout her career.

Who knows how many hours a lawyer is billing?

Only the firm bookkeeper really knows how many hours a lawyer is billing. And the number of hours billed isn’t the single determining factor when it comes to law firm profitability.

Why aren't my associates billing?

The associates aren’t billing because there isn’t enough work for them to bill. That’s a marketing problem, not an associate management/billing problem. Of course, some firms have plenty of work and still aren’t getting what they perceive as satisfactory billable hours from their associates.

Why do small firms bill less hours?

But that doesn’t necessarily mean profits must also be lower. It’s the overall business model that drives profitability. Let your business model drive you. Don’t let the chatter from other firms, especially when it ’s all about one narrow measurement, cause you to lose focus.

Can associates bill hours?

Having associates bill a substantial number of hours won’t help if you’ve got other issues. For instance, if your hourly rate is too low or your associate compensation is too high, it won’t matter how many hours they’re billing. If your business model is flawed, you’re going to have trouble.

Do lawyers freak out when they compare hours?

But even when we understand the challenges faced by lawyers in smaller firms, we still freak out when we compare the hours being billed by our associates to the hours being billed in the big-law-firm stories we hear at the bar luncheon.

Why do we have to keep switching billing?

The shifting agendas, priorities, and tasks require us to keep switching our billing from one client to another. That often involves getting back up to speed, opening different files, clearing our heads, and focusing on something different. Billable time is lost as we transition from one matter to another. Our ability to log hours to our clients is diminished when we’re constantly required to shift our attention from issue to issue.

Do lawyers bill hours?

Many lawyers bill lots of hours. Fewer lawyers actually collect on those billings. The number of dollars collected matters far more than the number of hours billed. Nobody cares about the time you spent, the hours you billed, or the effort you expended. The bottom line is the bottom line. When all is said and done, it’s the money remaining in the law firm bank account that really matters when it comes to billing clients.

How to succeed as a junior associate?

If you want to succeed as a junior associate, you would do well to follow these fifteen rules: 1. Be Nice to People. Of course you are going to be nice to the partners. They, after all, control your destiny.

What to do as a junior associate?

Don't Avoid Mundane Tasks. As a junior associate, you will have an army of helpers at your command for the first time in your life. There will be people standing ready to type your memos, Xerox your copies, sharpen your pencils and fetch your lunch. It can be a heady experience.

What happens if you ask your partner to bill you?

It is the partner's responsibility to cut your time if it seems unreasonable and due allowance will always be made for your lack of experience. Well, maybe.

How to inform a client of a major victory?

Informing a client of a major victory is one of the most rewarding aspects of practicing law, and you pick up the telephone to convey the good news. Put the phone down. What you should do instead is to advise the partner in charge of the case and let him or her have the pleasure of calling the client.

Can you sacrifice professional courtesy?

While you can permissibly make adjustments in the stance and tenor of court papers and other matters so as to accommodate a client's particular ideas, you should never sacrifice professional courtesy just to satisfy a client's lust for hardball tactics. Clients come and go, but opposing counsel stays around forever.

Can you succumb to a client's insistence that you treat opposing counsel shabbily?

They will usually want you to treat litigation as a matter of all-out war. You should never succumb, however, to a client's insistence that you treat opposing counsel shabbily. Thus, some clients will be incensed that you have agreed, for example, to opposing counsel's request for an enlargement of time. Too bad.

Do you have to sign a partner's name?

Your goal should be to do everything within reason to produce a complete product. A good rule of thumb to follow is that a partner should never have to do anything except sign his or her name. Thus, if a partner asks you to prepare a report to the client's board of directors, don't just hand in the finished report.

How often should I bill my lawyer?

Some firms require that lawyers enter their billable time daily or weekly, though bills usually go out monthly. Even if your firm doesn’t require you to enter time daily, this is the best approach to ensure you capture all the billable work you perform. Any lawyer will tell you that this is easier said than done, but I promise that you will lose time if you put it off, especially as a young lawyer. You’ll forget about emails you sent, phone calls you took, and other “small ticket” items that add up over a month. This hurts the firm and your progress toward your billable-hour goal.

How many hours can a lawyer bill?

Don’t short yourself that billable time. But be realistic about how many hours you can bill in a day. Not everything lawyers do is billable; an 11-hour day at the office might only yield eight billable hours. And that is OK.

What can you bill for in a law firm?

But at most firms, you can and should bill for tasks like reading and sending emails; taking and making phone calls; reviewing accident reports, medical records, and discovery documents; and speaking to clients, opposing counsel, and witnesses.

Why do you need to know what you can and can't bill for?

You need to know what you can and can’t bill for so you can avoid both spending excessive time on work that clients won’t pay for and entering time for unbillable tasks.

Do you get credit for billable hours?

At most firms, you will still get credit toward your billable hour goal for all the time you enter into the firm’s billing software, even if not all of that time is billed to the client. Sometimes associates are embarrassed by the amount of time they spend on work they view as “easy.”.

Do summer associates get good at billing?

Most seasoned lawyers recognize that summer associates and young lawyers generally are not good at billing. Most new lawyers don’t get comfortable with billing until they are third- or fourth-year associates.

What is double billing?

Double billing is simultaneously billing two clients for work performed during the same block of time. The temptation to do this occurs most often when lawyers travel. Say the lawyer spends two hours flying to attend Client 1’s deposition. While the lawyer is on the plane, she uses that time to work on projects for Client 2. Some clients don’t allow lawyers to bill for travel time, and under that circumstance, the lawyer could only bill the time spent working for Client 2 anyway. But when clients will pay for travel costs, the lawyer may be tempted to bill Client 1 for the time spent traveling and simultaneously bill Client 2 for work on their projects. Voilà—the lawyer has magically made four hours of billable time out of two hours. While none of the comments to Rule 1.5 or Rule 8.4 explicitly address double billing, legal ethics experts agree that double-billing violates these rules.

Why do you suggest paying associates less?

When you suggest paying the associates less, they generally quit. That actually solves the problem, because you can pay the replacement associate less. But having high turnover and a whole new team does create a whole set of other problems.

Why won't my associate stay for 20%?

Raise prices. You’re selling service at a money-losing price. That’s why the associate won’t stay for 20%–because 20% of what you’ re currently charging the clients is not enough. You may not feel as if your prices are low, but being unable to maintain these compensation ratios is a good indicator of underpricing.

When you increase rates or workload and the associates realize they are generating more revenue for the firm, they typically react

When you increase rates or workload and the associates realize they are generating more revenue for the firm, they typically react by asking for more of that money. They aren’t especially interested in your profit problem. They’re more interested in their student loan problem, their new car problem, their daycare problem, or their vacation problem. Again, you’ll soon find yourself hunting for new associates if you’re not a strong leader who can inspire your team.

How often does an overpaid associate get a direct deposit?

The overpaid associate gets a direct deposit every two weeks. The law firm owner gets what’s leftover. That surplus may not amount to much.

Is 20% a good number?

At 20% you’ll be profitable. It’s a good number. This guideline meets the needs of the associate while also meeting the requirements of the law firm. You can make 20% work in your firm.

When a firm realizes that the profitability problem is rooted in overpaying associates, they have to either

When a firm realizes that the profitability problem is rooted in overpaying associates, they have to either (1) pay the associates less, or (2) pay the associates the same amount while the associates watch their billables go up, either through price increases, greater responsibilities, or more billable hours.

Can you go back to a law firm if you pay too much?

You can’t go back once you start paying too much. A law firm with an out of whack salary schedule has a major problem.

Who is the lawyer who lays out a path for building a one of a kind, profitable niche practice

But many are stuck pursuing ineffective strategies. Others don’t even know where to start. In his popular book, lawyer-turned-legal marketer Jay Harrington lays out a path for building a one of a kind, profitable niche practice.

What do you need to know as a first year associate?

Here’s What You Need to Know as a First-Year Associate. For what it’s worth, and in no particular order: 1. Being busy is no substitute for being productive. A first-year associate billable hours are important, but the most valued associates are those who not only bill but get the job done. Be a finisher.

Can bankruptcy lawyers tap litigators?

Large firms have experts in almost every conceivable skill set and practice area. If you’re a bankruptcy lawyer, you can always tap a litigator to take that deposition or put on that witness. But you’ll become a much stronger, well-rounded lawyer by getting out of your comfort zone and learning to do it yourself. 16.