How Much Does a Lawyer Get Paid?
Lawyers typically earn a healthy salary in top law firms. Starting associate salaries range from low hundreds of thousands up to millions for partners.
Attorneys typically bill by the hour and can include phone calls, texts messages and meetings in their billing time.
1. Salary
One of the major draws of law as a career choice is its financial rewards, and indeed these can be substantial. According to the Bureau of Labor Statistics, annual wages for lawyers averaged at $144,230–nearly three times greater than overall occupation average of $51,960–but this national figure hides considerable state-specific variations.
PayScale reports that starting salaries for lawyers range between $60k-$68k annually, with more experienced or specialized attorneys commanding higher fees. Notable high-paid legal experts include patent, medical malpractice and tax law experts.
Notably, salaries at the higher end can differ considerably based on legal field, practice area, and location. For instance, an attorney in New York City would likely earn more due to cost of living considerations in their region.
Work at a large law firm will bring significant differences in starting salaries. At New York-based Milbank & Cadwalader for example, starting associate salaries increased significantly as part of a wave of raises that started this January; similar raises will likely take effect at other firms shortly.
However, those choosing to work in public service or at a small firm typically earn significantly less – for instance the starting salary at NYC Department of Law averages $75,677!
Many legal professionals are compensated on an hourly basis, meaning they receive a set fee per hour or fraction thereof that they work. Typical hourly rates range between $50 to $100; more specialized legal services usually incur higher hourly charges.
2. Benefits
Law firm jobs come with more benefits than just an attractive salary. Many law firms provide in-house continuing legal education programs on various subjects for associates, junior clerks and summer interns as well as training on managing projects or working with clients effectively. Furthermore, some law firms may even cover travel expenses when attending continuing legal education seminars or courses.
The median annual salary of lawyers in the United States is around $134,837; however, salary ranges depend greatly on practice area and geographic location. California boasts the highest salaries with average annual earnings averaging an estimated average of $179,470 while other high-paying states include New York ($172,060), Massachusetts (165,610) and Connecticut (153640).
Although lawyers are well-paid, their careers can often be stressful. Therefore, it’s essential to find a law job with an appropriate work/life balance – the best way of doing this is choosing a law firm which enables you to enjoy both work and life by having enough flexibility for personal commitments.
Recently, New York law firm Cravath, Swaine & Moore made headlines when it announced its plan to increase first-year associate pay from $160,000 to $180,000, providing first-year associates a welcome raise after years of stagnant compensation and serving as a major boost for Big Law salaries since 2007. Milbank and Cadwalader soon after followed suit and it is likely more will follow soon; such salary hikes should assist recent graduates pay off student loans while building savings accounts and saving for retirement.
3. Work Environment
There is a wide range of salaries for lawyers. Some positions pay significantly less, with an estimated average annual salary for lawyers in America being approximately $140,300; this can differ depending on your law firm and state – some such as Washington D.C. may offer higher wages than other places.
Law firm work environments can range from stressful to laid back. On average, lawyers spend approximately 38 hours each week working on client accounts – this time may include time spent both inside and outside the office (such as family dinners or trips to the grocery store), on the phone, as well as being on call 24/7 for client inquiries. Junior and senior associates often receive cell phones specifically designated for answering inquiries from clients.
Whoever chooses to work at large corporate firms can expect their salaries to begin on par with other top tier jobs. A first year associate at a large law firm in New York City could expect to make between the low hundreds and thousands of dollars; then progress onto mid hundreds for senior associate positions, eventually reaching into the millions for those reaching partner status.
Smaller law firms tend to pay lower salaries, yet still remain competitive. Years in practice play an integral part in how much an attorney makes; lawyers with one year of experience could earn as much as $71,146 while those five to nine years later could make $95,478, reaching $109,945 when at 10-19 years.
4. Flexibility
A lawyer’s salary varies widely based on various factors. These can include firm size, performance and demand for legal services in their region. Furthermore, bonuses may also be awarded depending on factors like billable hours worked per client development initiative or outstanding case results; additionally economic conditions could impact when raises are granted.
Last year, major New York law firms increased associate pay after years of stagnant wages – an answer to student debt many associates incurred while attending top law schools. Cravath, Swaine & Moore was first to do this by raising first-year associate pay by $20,000 while senior associate pay increased up to $20,000. Other large firms followed suit such as Milbank increasing associate salaries up to $380,000 while Cadwalader raised first year associate salaries to $210,000.
Earnings can also vary depending on the area of law they practice; corporate lawyers typically earn higher salaries than public prosecutors and assistant district attorneys because these types of lawyers specialize in more specialized areas and often handle larger sums of money.
Geographic location can also play a big part in a lawyer’s salary; rural or smaller city attorneys may not earn as much in New York City due to stiffer competition for high-profile cases, while attorneys working for federal agencies or local governments might make less. It is vitally important that lawyers thoroughly research the legal field prior to making career decisions that could impact their income, such as setting up practice.
5. Requirements
Salary estimates for attorneys vary significantly based on where they work, their level of experience, and what type of law is practiced. A senior associate at an elite New York City firm could earn upwards of $300,000. Lawyers with years of experience or those making partner at their firms may earn even more; however, these higher salaries come with increased responsibilities and pressure to perform well and generate business – something which may prove particularly challenging in economic downturns or periods with reduced demand for legal services.
Cost of living also plays a factor in how much lawyers get paid, with larger metropolitan areas like New York and San Francisco typically having higher wages due to high costs of living in those locations and because professional license requirements typically dictate living there. This may explain why New York and San Francisco-based lawyers typically receive higher pay than smaller towns or rural parts of the country.
Lawyers tend to carry an immense workload and spend long hours working on cases and client meetings, which can cause stress and burnout – ultimately impacting their quality of work. Therefore, it is crucial that lawyers find a balance between career goals and personal lives.
Considering what kind of lifestyle and location best suit you. In addition to picking out an area of law that interests you, consider how long you wish to devote yourself to this career path and who your clients will be.