NALP Bulletin, February 2012

The most recent information available suggests that, while hours worked and billed started to bounce back somewhat in 2010 after two years of decline, the recovery has been the greatest at the largest firms of 701+ lawyers. The picture at smaller firms is more mixed, with changes in billable hours not always tracking with changes in total hours worked. Overall, average hours worked were 2,044 per year in 2010, compared with 2,025 per year at these same offices in 2009. Overall averages for billable hours per year were 1,799 and 1,772, respectively. The largest firms saw average hours worked increase from 2,134 to 2,208 per year, and billable hours increase from 1,753 per year to 1,859 per year.

Tables 1 and 2 report on total and billable hours worked in 2010, as reported in the 2011-2012 NALP Directory of Legal Employers, showing both the distribution of figures reported and the average of all the figures reported (which in turn are averages). As these tables make evident, the size and direction of changes varies by firm size. For example, the average number of hours worked increased in firms of 101-250 lawyers but was relatively flat in smaller firms and in firms of 251-700 lawyers. Average billable hours nonetheless went up in firms of 50 or fewer lawyers, but continued to decline in firms of 501-700 lawyers.

Finally, the most recent reporting of billable hours requirements in the 2011-2012 NALP Directory reveals an average requirement of 1,879 hours per year overall, and an average requirement of 1,918 hours per year at firms of more than 700 lawyers (Table 3). As has been the case since NALP began compiling these figures, a requirement of 2,000 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 accounted for just 9-12% of reported requirements since 2004. Among firms of more than 700 lawyers, about 16% reported a 2,000 hour requirement, compared with about 20% in the prior year. The average requirement in this group of firms increased a bit, to 1,918 from 1,905 (which in turn was a notable drop-off from 1,930 hours per year). But overall, the distribution has moved "to the right." For example, in 1998, the most commonly reported figure was 1,800 hours, reported by about 30% of offices. Today, only 19% of offices report a 1,800-hour requirement.

Table 1. Average Total Hours Worked in 2009 and 201

Note: The number of offices shown in the last column is the number reporting a figure for 2010. A few of these offices did not also report a figure for 2009. Source: 2011-2012 NALP Directory of Legal Employers.

Table 2. Average Billable Hours Worked in 2009 and 2010

Note: The number of offices shown in the last column is the number reporting a figure for 2010. A few of these offices did not also report a figure for 2009. Source: 2011-2012 NALP Directory of Legal Employers.

Table 3. Billable Hours Requirements per Year by Firm Size

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 82% of all figures reported. Source: 2011-2012 NALP Directory of Legal Employers.