If you recently graduated from law school or are considering it, you should know the typical lawyer's salary and pay structure. It's essential to take into account as law school tuition increases; on average, it's three to five times more expensive today than it was thirty years ago (even after accounting for inflation!).
The majority of people generally agree that one of the highest-paying professions is the law. The average lawyer's salary is dependent on the job market and may not be all that it's cracked up to be.
Let's examine what influences lawyer pay and how to determine whether a Biglaw lawyer position is the best fit for you.
What is the typical attorney salary?
The average annual salary for a lawyer is $148,030, according to the Bureau of Labor Statistics (BLS).
Due to the bimodal salary distribution, these figures are deceptive. The Cravath scale is a system of compensation used by many Biglaw firms that are based on the number of years after graduating from law school and are paid to New York attorneys working at Cravath.
Then there is the pay for an attorney working for the government or on their own. As you might have guessed, there are significant differences between the two.
Additionally, a lawyer's salary is significantly influenced by their entry level or the number of years they have actually spent practicing law. As you can charge higher premiums for your legal advice, the payscale gradually rises.
Although the outlook for legal employment is about average, large law firms have experienced faster salary growth than the rest of the legal industry. You typically make three times as much as some of your peers if you are paid according to the Biglaw salary scale.
Bimodal salary distribution
Many people considering a career in law are attracted by the average annual salary. Many lawyers indeed make excellent salaries, but before you can understand how much you might make as a lawyer, you must first understand the bimodal salary distribution.
The majority of lawyers are familiar with the salary distribution curve. It appears as follows:
- The attorneys who work in Biglaw firms and receive high salaries form one peak.
- The other peak represents those making considerably less money working in a small law firm.
- For instance, a Biglaw lawyer's pay is significantly higher than that of an assistant district
- attorney or a public defender.
- The idea of an "average" salary is highly skewed and tends to ignore some of the most important aspects, one of which is the location of employment.
The top five states with the highest lawyer salaries, according to BLS, are:
- $198,820 for the District of Columbia
- $179,060 in New York
- $176,610 in California
- New Hampshire: $167,980
- $153,200 in Connecticut
As you can see, lawyers' pay is influenced by their location, their industry, and the size of the firm where they work.
To take into account some actual data: Graduates from the 2020 class of New York University who worked in law firms made a median salary of $190,000. Yet graduates who worked as judicial clerks? At $69,927, they came in significantly below that figure. The median salary for graduates who worked in government was also only $62,000.
Low pay scale
If you take into account the bimodal distribution scale, you might estimate that the lower end of the lawyer's salary range is around $60,000. If you work in a non-metro city where the cost of living is lower but the earning potential is lower, this is more likely to occur.
Average salaries for jobs in the public sector and in government are typically lower than those in the private sector.
For instance, a district attorney in New York City typically makes around $70,000 per year. Even though the position is in a large city like New York, the industry plays a significant role in determining the pay.
High pay scale
If you're a big law associate, your chances of making a good living as a lawyer are the highest. Although there is no official definition of "Biglaw," the term is frequently used to refer to some of the biggest law firms in the US.
Before entering the legal profession, you must take this into account.
You should look directly at the salary information provided by the firms if you want to work for a Biglaw firm. Studying data on national averages is pointless because it won't matter much to you.
The Cravath scale governs the majority of Biglaw firms. The Cravath scale enables law firms to pay associates salaries that are comparable to one another. Because it aids in keeping lawyers from some of the top law schools, it is well-liked.
The standard of living and cost of living in a particular state or city also has a significant impact on the salary you can expect to earn. The salaries can vary, even within the same state.
Take California, for instance. According to BLS, it offers a variety of salaries in three of its major metropolitan areas, despite having some of the highest salary ranges for lawyers:
- Sunnyvale-Santa Clara-San Jose: $231,610
- $201,920 San Francisco-Oakland-Hayward
- $180,220 Los Angeles-Long Beach-Anaheim
- By a few miles, there is a difference of almost 25%, which could mean the difference between paying rent and regressing to a lower standard of living.
Top-paid attorneys by practice area
Although a lucrative career in big law isn't always guaranteed, it can be. Where you went to school, where you work, how long you've been in practice, and the area of law you specialize in can all affect your pay.
The type of law you practice will have the biggest impact on your earning potential of those. On this PayScale list of median attorney salaries, you can see that some legal specialties earn significantly more than others:
- $180,000 for a patent attorney
- Attorney for intellectual property (IP): $162,000
- $134,000 for a trial attorney
- Attorney at tax: $122,000
- $115,000 Corporate lawyer
- Attorney for employment: $87,000
- Attorney for real estate: $86,000
- Attorney for divorce: $84,000
- Attorney for immigration: $84,000
- Funeral director: $83,000
- $63,000 Public Defender
This list is subject to change as demand and pay for various legal specialties fluctuate over time. If you're drawn to a field of law where salaries are higher, keep in mind that these attorneys frequently work long hours and are under more stress.
Biglaw firms' methods for determining salaries
Although "Biglaw" has no official definition, it typically refers to both the biggest law firms in the country and smaller, market-rate businesses. The Cravath scale is used by large law firms to base salaries on your class in law school.
It's extremely difficult to attract the top students from the top universities. When one company raises its pay, other businesses frequently follow suit. The scale offers a standardized system that, as they say, levels the playing field.
According to the Cravath scale, a first-year salary is $215,000, for instance. A fifth-year should budget $345,000 in earnings.
Bonuses are given to Biglaw attorneys
The Cravath scale controls bonuses given to Biglaw attorneys as well as Biglaw lawyer salaries. On this scale, full-time attorneys can typically anticipate receiving the same market bonus each year. A Biglaw firm typically makes the bonus announcement in late November or early December.
Cravath, Swaine & Moore LLP typically make the announcement first, though this isn't always the case. No matter which firmly announces the bonus first, it is soon posted on a website for legal news like American Lawyer or the New York Law Journal.
However, there is no assurance that other businesses will match the announced bonus. Although it is unlikely that businesses will offer less, they can offer bigger bonuses. A few outlier companies have even given associates six-figure bonuses, but these companies are typically not typical Wall Street companies.
Do you fit for Biglaw?
For recent graduates, the possibility of a good salary right out of law school is an important attraction. The average law school loan balance is $145,500, according to the National Center for Education Statistics, and a sizable salary can help make the debt load seem a little lighter. It makes it simpler to refinance and pay off your law school debt quickly.
High levels of stress
Not everyone needs big law legal services, and it might not be the best career move for you. Associates may experience heavy workloads, high levels of stress, monotonous work, long hours, and late nights. Hours could be spent drafting and redrafting a brief, for example, which is only a small part of a larger project.
One of the reasons Biglaw firms offer summer associate programs is the demanding work environment. Utilizing the program can acquaint you with the setting and give you a taste of what a new hire might experience. However, summer associate positions are extremely competitive, much like the Biglaw field.
Location
When thinking about a career in big law, location is another thing to take into account. The majority of Biglaw firms are located in significant American cities like Chicago, New York, Washington, D.C., Los Angeles, Atlanta, and Miami, according to the Internet Legal Research Group. Depending on your background, you might need to significantly adjust your lifestyle to enjoy living in a city.
Work-life harmony
You may believe that a career in big law makes work-life balance seem absurd. It is no secret that lawyers in the Biglaw industry experience frequent burnout. How long can you endure starting each Monday with dread and a knot in your stomach? And is giving up personal fulfillment for the salary worth it?
No, I'd reply. I think it is possible to achieve a satisfying work-life balance in Biglaw, even though I don't have everything figured out. Although difficult, the reward is definitely worthwhile.
You experience less loneliness and hopelessness as you take charge of your thoughts and actions, which gives you a sense of agency. You must resolve to achieve a healthy balance in your life. As you assert and reassert control over the things that are important to you, you must gradually develop this skill. It might take years.
Major financial errors to avoid
You can increase your average annual salary regardless of where you rank on the lawyer pay scale by avoiding a few common financial pitfalls.
Because personal finance is not a subject covered in law school, learning how to manage your money can feel like a second job. However, a few changes can position you for success:
- Take control of your student loan debt by making early repayments or applying for loan forgiveness
- Utilize the full range of benefits offered by your company.
- Learn about backdoor IRAs and increase your savings rate.
Most importantly, don't raise your standard of living because you anticipate having more money in the future. Set up a meeting and consult with a financial planner. To help your money work harder for you, you'll receive professional advice.
Paying lawyers: The essentials
A 360-degree perspective is crucial when examining the average lawyer salary in the United States because a variety of factors affect both the right career path and one's ability to support oneself.
Some of the highest-paying industries include intellectual property, medical malpractices, tax law, corporate and securities law, sports, and entertainment, with salaries ranging from $126,000 to $182,000.
However, occupations like employment and labor, family law, personal injury, and immigration pay much less, between $60,000 and $82,000 annually.
The salary for those who want to practice law or already do so is anticipated to remain stable or increase gradually over the next few years. Regarding the job outlook, it is anticipated that it will exceed the national average due to the high demand for highly qualified attorneys in the ever-evolving legal environment of today.
The data presented here should be used as a guide when making a choice because each person's situation and goals are unique. At the end of the day, effectively making a decision is greatly influenced by having a thorough understanding of the average salary and the factors that influence it.
