NALP Bulletin, April 2008

This month's column updates a series of analyses from NALP's Directory of Legal Employers, based on the 2007-2008 edition.

Analyses show that a requirement of 2,000 billable hours per year is not typical, and although it is not possible to track changes at individual firms and offices, a requirement of 2,000 hours has become only slightly more common on an aggregate basis, accounting for 12% of reported minimums, up from 9% for 2004. But overall, the distribution has moved to the right. For example, 10 years ago the most commonly reported figure was 1,800 hours, reported by about 30% of offices. Today, 17% of offices report an 1,800 hour minimum.

The first two tables report on total and billable hours worked in 2006, showing both the distribution of figures reported and the average. For comparison, the average for 2005, as reported by the same firms, is also shown. The third table shows the five most commonly reported billable hours requirements, the percent of offices reporting each, as well as an average.

The next series of tables reports on a variety of items related to pro bono work. Tables 4, 5, and 6 report on whether firms give billable hours credit for pro bono work, and, if so, whether there is a maximum that will be credited and what that maximum is. As Table 6 shows, a maximum, if there is one, is typically 50 or 100 hours, with 50 hours more typical of firms of 500 or fewer lawyers, and 100 hours more typical of firms of more than 700 lawyers. Table 7 reports on the extent to which pro bono hours are considered as equivalent to billable hours for bonus purposes.

Finally, Tables 8 and 9 report on the extent to which firms have a set minimum number of hours that they encourage, and, if so, what that minimum is. Note that the items compiled in Tables 8 and 9 appear only in the online NALP Directory of Legal Employers (www.nalpdirectory.com) and not in the print edition.

In general, the percentages reported in Tables 4-9 have not changed a great deal in a year except that firms, particularly larger firms, were a bit more likely to report that they encourage a minimum number of hours of pro bono work - 51% compared with 46% last year. To view the complete analysis compiled from the 2006-2007 Directory, see the April 2007 article "How Much Do Associates Have to Work?".

Table 1. Average Total Hours Worked in 2006

Note: The number of offices shown in the last column is the number reporting a figure for 2006. The number reporting a figure for 2005 is slightly smaller. Source: 2007-2008 NALP Directory of Legal Employers

Table 2. Average Billable Hours Worked in 2006

Note: The number of offices shown in the last column is the number reporting a figure for 2006. The number reporting a figure for 2005 is slightly smaller. Source: 2007-2008 NALP Directory of Legal Employers

Table 3. Billable Hours Requirements per Year

Note: Percentages do not add to 100 because not all billable requirement figures reported are shown. Those shown are the five most commonly reported, and account for 90% of all figures reported. Source: 2007-2008 NALP Directory of Legal Employers

Table 4. Is Billable Hours Credit Given for Pro Bono Work?

Source: 2007-2008 NALP Directory of Legal Employers

Table 5. Where Billable Hours Credit Given for Pro Bono Work--Is There a Maximum That Will Be Credited?

Note: Figures are based on 1,040 offices/firms which reported that billable hour credit is given for pro bono work (either yes or case by case) and which also reported whether or not there is a maximum amount that will be credited.

Table 6. Maximum Number of Pro Bono Hours that May be Counted as Billable Hours Requirements per Year

Note: Percentages do not add to 100 because not all reported hours figures are shown. However, no other hours figure accounted for more than 4% of responses. Figures are based on 373 offices/ firms which reported setting a maximum number of pro bono hours which can be credited towards billable hours, and which also reported the maximum. Source: 2007-2008 NALP Directory of Legal Employers

Table 7. Are Pro Bono Bono Hours Equivalent to Billable Hours for Bonus Purposes?

Source: 2007-2008 NALP Directory of Legal Employers

Table 8. Is There a Minimum Number of Pro Bono Bono Hours Encouraged?

Table 9. Number of Pro Bono Hours that Are Encouraged

Source: 2007-2008 NALP Directory of Legal Employers