What is a first-year associate’s time worth? It’s a simple question with a not-so-simple answer. The value of a first-year lawyer, like that of any lawyer, is intrinsically tied to his level of knowledge with respect to his client’s legal and business issues and his ability to accomplish a desired outcome. Ideally, he or she can not only do the work, but can do so efficiently.
But first-year associates, by definition, have very limited knowledge of lawyering. A typical first-year associate’s exposure to substantive, real-world legal work is limited to a summer clerkship after the second year of law school. (While a small minority of students may find a legal position for their 1L summer, most firms do not have robust internship programs for first-year law students.) And yet many big law firms are billing their first-year associates, who often have only eight to 12 weeks of practical experience, at rates as high as $300–$400-plus per hour. It’s akin to asking a culinary student to prepare a meal at a five-star restaurant after only reading cookbooks. For a general counsel who is responsible for managing the P/L of the legal and compliance departments, it is difficult to rationalize paying these rates for a novice lawyer.
