One
thing
is
certain
about
Biglaw
billable
rates
—
they’re
always
going
up.
Despite
that
maximum,
it’s
still
news
in
the
industry.
It
was
more
than
a
decade
ago
that
partner
billing
rates
first
hit
$1,000/hour,
but
it
wasn’t
much
longer
before
we
hit
the
$2K
mark.
Now,
according
to
data
from
Valeo
Partners,
we’ve
approached
the
$3,000/hr
line.
Thanks
to
the
disclosures
required
in
bankruptcy
fee
filings,
Law.com
was
already
able
to
suss
out
some
of
the
firms
nearing
the
$3K
threshold.
Valeo
Partners
declined
to
name
the
firms.
However,
some
recent
bankruptcy
fee
packages
reveal
some
firms
are
close
to
the
$3,000
mark
already.
Wilson
Sonsini
Goodrich
Rosati
billed
$2,720
an
hour
this
year
for
top
partners
in
the
Rite-Aid
bankruptcy.
McDermott
Will
&
Emery
was
charging
top
partners
out
at
$2,590
hourly
at
the
end
of
2023
in
the
Mountain
Express
Oil
Co.
bankruptcy.
Overall,
Valeo
Partners
estimates
that,
for
the
Am
Law
50,
senior
partners
billing
rates
will
average
$2,100
in
2024,
with
partners
averaging
$1,900/hour.
However,
sky-high
rates
for
the
tippy
top
of
the
Biglaw
food
chain
are
pretty
understandable.
But
that
isn’t
the
only
place
Biglaw
is
increasing
rates.
Third-year
associates…
yup,
those
only
three
years
removed
from
law
school…
are
being
billed
out
at
a
bunch
of
firms
at
over
a
cool
grand.
For
associates,
rate
increases
will
be
more
notable
among
third-years.
Currently,
16
of
the
Am
Law
50
firms
have
third-year
associates
with
rates
over
$1,000,
but
Valeo
projects
around
half
of
the
Am
Law
50
to
have
rates
of
over
$1,000
amongst
this
group
by
2025.Billing
rates
for
first-year
associates
are
approaching
$1,000
at
a
handful
of
firms,
with
Paul,
Weiss,
Rifkind,
Wharton
&
Garrison
charging
a
minimum
of
$895
for
associates
in
2024,
bankruptcy
records
show.
Sullivan
&
Cromwell
charges
nearly
as
much—$850
hourly—for
first-years.Sullivan
&
Cromwell
and
Paul
Weiss
also
have
among
the
top
rates
for
senior
associates,
with
associates
maxing
out
at
$1,575
at
Sullivan
&
Cromwell
and
$1,560
at
Paul
Weiss.
And
while
that
may
give
some
sticker
shock,
once
senior
associates
crossed
into
the
four-figure
billing
rates,
it
was
only
a
matter
of
time
for
junior
rates
to
hit
that
benchmark.
This
will,
seemingly
inevitably,
trigger
the
latest
round
of
complaints
over
the
high
cost
of
top-notch
legal
talent.
Of
course,
that
might
just
be
a
ruse
for
markdown,
since
in-house
counsels’
tolerance
for
big
bills
(from
the
right
lawyer)
only
seems
to
be
growing.
Kathryn
Rubino
is
a
Senior
Editor
at
Above
the
Law,
host
of
The
Jabot
podcast,
and
co-host
of
Thinking
Like
A
Lawyer.
AtL
tipsters
are
the
best,
so
please
connect
with
her.
Feel
free
to
email
her
with
any
tips,
questions,
or
comments
and
follow
her
on
Twitter
@Kathryn1 or
Mastodon
@[email protected].