Most people believe that lawyers make lots of money, but this is not always true. Modern firms tend to employ leaner teams with far fewer non-revenue generating positions like secretaries, receptionists, filing clerks and gophers).
Salaries vary by field and location – which is great, since legal services demand can differ significantly based on industry and state.
1. Salary
Salary considerations for lawyers vary significantly based on industry, location and size of employer; for instance those working in Big Law typically make more money than their counterparts in smaller firms or public sector jobs.
Experience and professional credentials can have an effect on earnings as well, with those holding higher education levels such as master’s degrees typically charging more.
According to the Bureau of Labor Statistics, lawyers earn an annual average annual wage of around $144,230, which may seem low but is sufficient to cover expenses and provide an acceptable standard of living. Furthermore, this salary qualifies them for Public Service Loan Forgiveness which helps reduce student debt.
2. Bonuses
Lawyers do not typically receive much in terms of pay; therefore their salaries must be supplemented with bonuses from firms and fields of law to make up the difference in salaries. Depending on their firm and field of law, bonuses can be significant – for instance a first year associate at a Big Law firm may receive up to $190,000. With increased experience comes higher salaries; additionally many Am Law 200 firms offer summer/fall bonuses which vary annually and depend on performance evaluation.
Lawyers can also earn bonuses by generating revenue or meeting their hourly billing target, typically reserved for senior partners in Big Law firms; however, some Am Law 200 firms also award associate bonuses such as Husch Blackwell paying a percentage of origination fees and Norton Rose Fulbright giving bonuses based on profits generated from certain engagements.
Cooley LLP, for instance, has been doling out above market rate end of year bonuses to its attorneys and staff, in addition to special fall bonus payments of up to $7,500. Unfortunately, critics have pointed to this practice as creating an arms race for pay within its industry.
3. Loans
Lawyers work with an array of clients ranging from individuals and companies. Their services may be required for litigation, contracts, real estate matters, wills or more; as a result their fees can often be substantial.
Due to this, many lawyers leave law school saddled with significant debt. A 2020 study conducted by the American Bar Association (ABA) showed that 95% of graduating law students carried student loan debt when they graduated.
At present, lawyers have several loan options to consider for financing their home purchase or refinancing needs. Mortgage loans provide one such solution with competitive interest rates and flexible terms – an attractive choice among lawyers.
Some law firms also provide legal fee payment plans; these programs must adhere to American Bar Association (ABA) guidelines and Interest on Lawyers’ Trust Accounts (IOLTA) regulations to avoid ethical issues.
4. Scholarships
Lawyers who receive scholarships can reap the fruits of their labor and education without incurring massive debt. Scholarships may be offered from law firms, private organizations and community groups and often depend on your field of study or location, personal character traits or background – these programs give deserving students like Schiffman Personal Injury Lawyers Scholarship an opportunity to keep their education within reach while continuing towards a rewarding career path.
Law schools often offer scholarships to deserving students. Some scholarships provide full-ride tuition fees and mandatory fees coverage, while others specialize in certain fields like intellectual property law or corporate governance law. One scholarship in particular, called the ABA Legal Opportunity Scholarship, awards 10-20 diverse students up to $15,000 over their three years at law school.
Earl Warren Law School Scholarship awards three students $10,000 over three years to help pursue legal studies committed to racial justice and public service, who submit an essay for consideration for this award. To qualify, students must submit a scholarship essay as soon as they apply.
5. Benefits
Legal careers require dedication and long hours; dealing with high-stakes situations that are out of your control may be emotionally taxing; yet being an attorney can be immensely satisfying when clients find solutions for their problems with you as their advocate.
Attorneys need to find an outlet outside of work that keeps them sane and maintains their drive, such as gardening or playing sports; or it could involve yoga classes or painting. Establishing such an outlet will prevent burnout from taking hold and allow you to remain the attorney your clients depend upon.
Additionally to their salaries, many lawyers enjoy an array of benefits beyond salaries alone. These may include health and life insurance policies; flexible scheduling; paid time off benefits; costs of bar association fees covered and training and development opportunities – to name just a few examples. Typically these types of perks are reserved for full-time employees of an organization.