We know that the overall employment rate for the class of 2011 is lower than it’s been in 17 years. But even members of the class of 2011 who managed to secure employment have been screwed. Median starting salaries for new law school graduates have dropped by 35% over the past two years.
Since prospective law students are not great with facts and numbers, NALP was kind enough to put together some pretty pictures to help people understand….
* What kind of a Dewey pun will be used later today when we discuss this global “clawback” deal for former D&L partners? I dunno, but “Dewey know how f**ked we are?” seems rather appropriate at this point. [Wall Street Journal (sub. req.)]
* Judge Lucy Koh recused herself from a Facebook privacy lawsuit without providing a reason for doing so. Given that a petition to impeach her popped up online, she probably doesn’t want to piss off any other tech companies right now. [Reuters]
* Mississippi: a state where legislators want to protect women from unscrupulous abortion practitioners their own choices about their bodies. A judge has extended a temporary order to allow the state’s only abortion clinic to remain open. [CNN]
* Good news, everyone! Median starting salaries for recent law school graduates are no longer in the six-figure range due to an “erosion in Biglaw jobs.” Still think you’re going to make big bucks? [ABA Journal]
* A San Diego, California fireworks fiasco that lasted all of 15 seconds yielded not only a bunch of fabulously entertaining YouTube videos, but also great lawsuit fodder for environmental groups. [National Law Journal]
* Note to unemployed law school graduates in New Jersey: selling black-market kidneys isn’t a half-bad career choice, because if you get caught, you’ll likely only be sentenced to 30 months in prison. [Bloomberg]
Do you know why your parents always encouraged you to be a doctor or a lawyer when you were younger? Because you can still make bank in either field.
Although it seems that we’re constantly painting doom-and-gloom pictures of the imploding legal profession here at Above the Law, we’ve got to admit that for some, law is still a financially-booming career path. In fact, according to data pulled from the Bureau of Labor Statistics, being a lawyer still has significant monetary perks. CNBC compiled a list of the 15 highest paying jobs in the country, and despite meager Biglaw bonuses and the Dewey effect, lawyers continue to reign near the top.
Where do lawyers fall on the list? Let’s find out….
I worked for twenty years at the darkest of the black-box compensation law firms: No one knew what anyone else was being paid, and the firm forbade talking about compensation. Here’s the curious part: We obeyed.
I saw the raised eyebrows of partners considering moving laterally to my firm: “Right — no one talks about compensation. You guys must talk about it all the time, just like we do at my firm. It can’t be a secret.”
Wrong. We really, honest-to-God did not talk about compensation. The subject just didn’t come up.
I’ve heard second-hand that this is true for other black-box firms, too. The managing partner of a different large, black-box comp firm recently told one of my colleagues: “Once you take compensation out of the limelight and forbid people from talking about it, then people stop talking about it. The subject drops off the table.”
That sets the stage: At firms where lawyers are permitted to talk about each other’s compensation, they do. And at firms where lawyers are prohibited from talking about compensation, they don’t.
Riddle me this: In corporate law departments, we are not prohibited from discussing each other’s compensation, but we don’t do it anyway. Why is that?
Earlier this week, we brought you some news about an “excellent position” that a tipster found on Boston College Law School’s Symplicity site. As a quick refresher, BC Law touts a median starting salary of $160,000 for graduates in the class of 2010 who entered into private practice. This job… doesn’t come anywhere close to that number.
The position in question promised benefits such as malpractice insurance, health insurance, a clothing allowance, and an MBTA pass, but the starting salary was only $10,000. The MBTA pass must’ve been thrown in as a housing benefit, because the firm had to have known that on a salary that’s below minimum wage, their new associate would be forced to live in the Boston subway system.
As we noted in Morning Docket, one of the firm’s hiring partners has now spoken out about the job, and a spokesman from Boston College Law has come to the school’s defense, too. Let’s take a look at some of their bullsh*t explanations rationales for posting this “excellent position”….
So, we often bring you stories about terrible job offers for recent law school graduates. And we often bring you stories about how law school statistics about the success of their graduates can sometimes be misleading.
Today, let’s put those stories together. Let’s take a look at a job that will pay you way below minimum wage that’s being offered to law grads from the same school that proudly boasts a “median” private practice salary of $160,000 within nine months of graduation.
Last week there appeared a column on this site that denigrated clerkships in the middle of the country. I could not decide if the author was attempting satire, but it seemed to be a straight piece. I would like to offer a counterpoint.
I began my career at Biglaw in New York City. The firm began to have troubles, and I saw the writing on the wall as my class dwindled from 40 to 30 to 20. I then heard from a family friend that a federal judge in Oklahoma City was looking for a clerk to assist with some topics with which I was familiar. I scored an interview, we hit it off, and I moved my wife and new baby to OKC for a year.
Full disclosure: I went to 15 schools before graduating high school, and OKC was the place I called “home.” Many decisions about this move were simple: it allowed us to live near family for a year, which was great support for the baby; my wife was working on her dissertation, so she had time to write; and I had a circle of friends from high school with whom I could reconnect.
Further simplifying the issue was that the government payscale is based solely on experience. How much did I earn, as a law firm associate turned law clerk?
Oh, you’re all running here now. You saw the title. Here you come. Click click click. It’s all you want to know. And by you, I mean those who claim to love Biglaw, but would jump to your own place or a smaller firm in a second if you “could make the same money.”
I know when you call me, when you come to my office to discuss the “possibility of leaving,” that it’s the only thing on your mind. Sure, you want your name on the door, more freedom, more client contact. But you just have one real question. One real fear. One real concern. One thing you need to convince your better half of before you make “the jump.”
Scrooge McDuck: he is the 1 percent (but not a lawyer).
Lawyers are the fourth most well-represented occupational group among the nation’s top 1 percent (which, for purposes of the study, consists of households with a pretax income of $380,000, excluding capital gains).
– a New York Times analysis of data collected by the University of Minnesota Population Center.
Additional interesting facts and links — including which occupations ranked ahead of lawyers, and what percentage of lawyers belong to the 1 percent — appear after the jump.
A college graduate without student loan debt is akin to reading a kind quote about Kim Kardashian in a tabloid—it’s rare.
In the past eight years, student loan debt has nearly tripled to a whopping $1.1 trillion, and in the past 10 years, the percentage of 25-year-olds with such debt has risen from 25% to 43%
It’s gotten so bad, in fact, that New York Fed economists warned last month that the burden of student debt could stilt consumer spending by twentysomethings, as well as further hamper the recovery of the housing market and economy.
To get a better idea of what massive student loan debt (we’re talking over $100,000 massive) looks like, we talked to an attorney who graduated with a large student loan debt. We also consulted LearnVest Planning Services CFP® Katie Brewer to see just how their repayment plans stack up.
S. Fischer, 36, Attorney Graduated: 2001
How Much I Borrowed: $100,000
What I Still Owe: $45,000
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Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: email@example.com.
Deal flow has clearly picked recently up for most US associates, counsels and partners in Hong Kong/China and Singapore. We are on the phone with a lot of these folks on a daily basis, many of whom we have known for years. Further, the head of our Asia team, Evan Jowers, and Kinney’s founder and president, Robert Kinney, frequently meet in person with leading US partners in Asia to assess their needs and keep on top of the inside scoop at as many firms as possible. The need for legal recruiting help in Asia from experienced recruiters appears to be live and well. In March, Evan and Robert were in Beijing at such meetings, in April, Evan was in Hong Kong, and for half of June Evan will be in Shanghai and Hong Kong. Thus its pretty easy for us to tell when there has been an across-the-market pick up in capital markets and corporate work.
On an average day in Asia when Evan and Robert visit firms, they typically have 5 to 9 meetings a day, mostly with US partners in the market. The reason they have these meetings is not simply because Kinney makes a lot of US attorney placements in Asia and that a particular firm may have openings; instead these are just visits with friends. After years of working together as business partners, the folks at Kinney are actually these peoples’ friends. The firms Kinney work closely with in Asia (which is just about every law firm – call us if you want to know the one firm in the world we will never place anyone with again, ever, and why) look forward to the visits, or at least act like they do. After seven years in the market, many of the client partners are former associate candidates. Also, these US partners see Kinney as a very good source of market information as well, because they know how deep their contacts are in the market and how frequently they are speaking to counterparts at peer firms.
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