I don’t think that looking at people who simply have law degrees is enough. You need to evaluate positions that require the use of a law degree. I would be shocked to find a significant number of practicing Louisiana attorneys working in the private sector for less than $100k a year after ten years of practice.

Even a small town lawyer with his own firm billing at $150/hour would easily hit that billing 1500 hours a year.

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Posted by Ace Midnight

Between sanity and madness

Member since Dec 2006

89622 posts

Posted on 4/1/24 at 1:25 pm to Athanatos

quote:
Even a small town lawyer with his own firm billing at $150/hour would easily hit that billing 1500 hours a year.

That's not the way it works. Assume a non-BR or New Orleans defense firm. Bill 1500 at $150. That's $225k, right? A full third of that goes right to overhead. If an associate, another 1/3 goes to the partners. Now, the partners (again, assume 6 or 7 out of 20 attorneys) will get a third of their own receipts, maybe at a little bump in rate, plus the profit sharing. Associates might get a bonus for getting over $225k (assuming your numbers and it fits the business model). So you have about 14 associates in this hypothetical firm making $100k or less.

ETA Your comment was a solo firm billing $150. Sorry to have gotten into firm economics. Assuming the attorney runs a very lean operation, rent, staff, Westlaw, insurance, etc., are going to bite off 40% of receipts ... easily. And, assuming this is mainly domestic or other boutique practice, business and getting bills paid will present unique challenges. My firm economics from above are the majority of billable firms, ie insurance defense.

This post was edited on 4/1/24 at 1:47 pm

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Posted by SlowFlowPro

Simple Solutions to Complex Probs

Member since Jan 2004

423547 posts

Posted on 4/1/24 at 2:10 pm to Athanatos

quote:
Even a small town lawyer with his own firm billing at $150/hour would easily hit that billing 1500 hours a year.

That's 225k gross.

For a small town attorney to bill 1500, you're likely looking at a receptionist and secretary/paralegal. Assuming he's not shady and doesn't make them ICs, that's 70-90k in terms of salary, employer taxes, WC, etc.

Right there with no overhead, you're at 135-150k.

Then there is malpractice (3k), rent (12-30k), supplies, CLEs, equipment, etc.

That's also assuming you're paid 100% on those 1500 hours and I would imagine actual collection for a small firm would turn 1500 billed hours into 1200-1300 paid hours in the best year.

*ETA: 1500 hours/year is also generous. I made a comment in a CLE a year or 2 ago that the city of Jennings has almost no lawyers who are not taking government money (DA salary, PD salary, PD contract, judge, etc.) to survive.

This post was edited on 4/1/24 at 2:15 pm

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