Random Pensées

Follow up to Time is Money Post

Yesterday, I posted my thoughts about time and it really isn't money and I received, thank you very much, some very thoughtful and interesting comments. By the way, I heart comments and especially the excellent comments y'all left yesterday.

But here is another way to look at time and its value: Through the eyes of the lawyer who bills by the hour (I am reproducing the contents of that page below the fold here just in case the link stops being live, for whatever reason):

The Truth about the Billable Hour

As you try to choose a path in the law, or choose among various law firms, you will often hear mention of the billable hours that are expected of the associates in a law firm. Most law firms make their money by billing their clients by the hour. If you do not bill a certain number of hours, you do not bring in enough money to cover your salary, not to mention the profit share for the partners and overhead. The more hours billed, the more profit for the firm. Government and public interest employers do not typically have any billable hour requirements because they do not bill their hours to a paying client.

Firms "average," "target" or "minimum" billables typically range between 1700 and 2300, although informal networks often quote much higher numbers. The NALP forms ask employers for their average associate billable hours, as do many interviewees, because of its enormous impact on associates' lives.

The purpose of this handout is to help you understand the billable hour expectations most law firms have for associates, and the impact of those expectations on your lifestyle. Keep in mind that not all law firms have the same emphasis on billable hours: public interest law firms, smaller law firms, and law firms outside of large metropolitan areas often require less billable hours and may place more emphasis on training, client development, community-related activities and the like. In addition, government and public interest employers typically do not have any billable hour requirements because they do not bill their hours to a paying client. Speak with a CDO counselor to discuss these options in more detail.

A. The Full Time Job:
Target 1800 Billable Hours

Assume you "work" from 8:00 am - 6:00 pm each day 10.0
Assume you take an hour for lunch -1.0
Assume you take two 15 minute coffee breaks -.5
Assume you spend a half-hour reading legal updates and reviewing general correspondence -.5
Assume you will need to attend department meetings, occasional conferences, and do CLE -.5
This means that you work 10 hours a day but may bill 7.5
If you work a 5 day week x 5
You have been at work 50 hours and billed 37.5
If you do this all year long, and we assume:
3 weeks vacation
2 weeks holiday
No sick days or personal days
You will work 47 weeks x 47
And have billed an annual average of 1762

To gain an extra 70 hours to be respectable you could:
(a). Add approximately 1 1/2 hours a week (approximately 20 minutes per day) 1 ½ x 47=70 1832
So come in at 8:00 am and work until 6:20 pm Monday - Friday
The Commute

With a half hour commute (to your desk and working) you are gone from home 7:30 am to 6:50 pm

With a one hour commute you will be gone from 7:00 am to 7:20 pm, Monday - Friday
OR
(b) Work one Saturday a month (10:00 am to 5:00 pm with 1 nonbillable) 6 x 12 months = 72
You have now billed 1834
You have been "at work" 2434
This schedule does not account for any personal calls at work, training/observing, talking with co-workers, a longer lunch (to exercise? Christmas shop?), a family funeral, any pro bono work (if not treated as billable hours), serving on a Bar committee, writing an article for the bar journal, interviewing an applicant, etc.

B. The Overtime Job:
Target 2200 Billable Hours

Assume you "work" from 8:00 am - 8:00 pm each day 12.0
Assume you take an hour for lunch and an hour for dinner -2.0
Assume you take four 15 minute bathroom/coffee breaks -1.0
Assume you will need the same time for department meetings, conferences and CLE -.5
This means you "work" 12 hours a day but bill only 8.5
You do this 5 days a week x .5
You have "worked" 60 hours but have billed only 42.5
If you do this all year long, and we assume:
3 weeks vacation
2 weeks holiday
No sick days or personal days
You will work 47 weeks x 47
And have billed an annual average of 1997

To gain the needed 200+ hours you could add two Saturdays a month
If you work 10-5 on these Saturdays with 1 nonbillable hour you will have 6 billables per day x 2 = 12 x 12 months = 144
For a new total of… 2141

Still Short!

So add another Saturday a month for 10 months (take a break in Nov. & Dec. for the Holidays)

6 x 10 months =

60

You made it!

You have billed

2201

However, you have been "at work"
3058

The Commute
With a half hour commute you are gone from 7:30 am to 8:30 pm Monday - Friday
And 9:30 am - 5:30 pm three Saturdays a month
With a one hour commute you are gone from 7:00 am to 9:00 pm Monday - Friday
And 9:00 am to 6:00 pm three Saturdays a month
BUT once again this schedule does not account for any personal calls at work, training/observing, talking with coworkers, a longer lunch (to exercise? Christmas shop?), a family funeral, any pro bono work (if not treated as billable hours), serving on a Bar committee, writing an article for the bar journal, interviewing an applicant, etc.

Posted by Random Penseur at February 4, 2005 09:40 AM