Attorneys can command an attractive salary, depending on their field of expertise and local costs of living. However, before accepting such employment offers in their city and state.
New York-based law school graduates typically begin their legal careers with an estimated starting salary of about $160,000; however, since 2007 this number has steadily decreased as many firms reduce starting salaries for entry level lawyers.
Salary ranges
When it comes to lawyers’ salaries, factors like job type, experience level and geographical location all play a key role. This is especially true for lawyers living in major metropolitan areas with higher living costs – this data can give an idea of average salaries by state across America broken down by seniority level for you to use when estimating how much they might expect when starting work as attorneys.
Salaries for new lawyers vary significantly by state, region and employer. On average, attorneys at larger firms tend to earn more than those at smaller ones; according to an American Bar Association survey first-year associates at large firms earned median salaries of $135,000. This represents an increase over last year.
The national average salary can also vary based on firm size, location and specialization. Law firms with more than 75 attorneys tend to command higher average salaries than firms with under 35 attorneys; additionally, attorneys who specialize in areas like criminal or civil rights law often earn more than generalists.
Biglaw firms were once well-known for offering generous first-year salary increases to attract top law school graduates, however since 2008 recession many firms have decreased starting salaries and some have even stopped offering bonuses altogether; there are however still a handful of firms which provide some of the highest starting salaries in this field.
Some of the nation’s largest corporations pay their lawyers six-figure salaries. Lawyers working for non-profit entities, such as legal aid, typically make less money; those hired as in-house counsel at corporations may earn significantly higher incomes.
Location and industry of employment also play a role in attorney salaries; government employees such as district attorneys and public defenders typically receive lower pay because federal law mandates that their salaries not differ by more than 5 percent from private-sector attorneys.
Job outlook
Job prospects for attorneys remain optimistic, though salaries remain lower than they were 30 years ago. Law school tuition continues to increase at three to five times faster than inflation – making a six-figure salary seem impossible for many new graduates; however, pay scales vary widely depending on type of work performed and location of practice.
Bureau of Labor Statistics estimates that attorneys typically earn an annual average income of $126,930; or approximately $70-an-hour. Attorneys in private practice can make even higher salaries if they specialize in particular areas of law. California and Washington DC boast some of the highest-paying attorneys; together they employ more attorneys than any other individual state; other states offering high salaries include New York, Massachusetts and Connecticut.
Lawyers working at large law firms tend to make more than other workers; the first-year associate salary at such firms often surpasses $160,000. Yet this still falls below 2009 market peak when nearly two-thirds of firms paid this amount to new hires.
Attorneys can look forward to receiving generous benefits packages in addition to their base salaries. Many employers offer medical and dental coverage as well as free or reduced-cost eye care and gym memberships; additionally, attorneys may earn up to 13 days of vacation each year.
The salary of an attorney varies by state, making it important to take this into account when choosing your career path. Some states offer higher incomes while others feature a lower cost of living and smaller populations – in states with high costs of living the average attorney salary is typically $142,180 while in those with lower income levels it reaches $173,970.
As the legal profession expands in America, job prospects for lawyers remain promising. According to projections, new attorneys are projected to increase by 4 percent within five years compared with national average of 3 percent growth. Demand for attorneys is particularly strong within healthcare, finance, and insurance fields where jobs may come more readily while salaries tend to increase quickly in these sectors.
State salary averages
Lawyers may have an image of making big bucks, but individual attorney salaries can differ widely depending on state and type of work. Deborah Merritt of Law School Cafe recently reported that attorney salaries at the 25th, 50th and 75th percentiles fell below inflation during 2016. In addition, Deborah noted that lawyers working in small firms in nonmetropolitan areas made less than those in larger firms in metropolises due to recession and Covid-19 reimbursement issues; these trends all combined have caused law firm hiring rates to decrease and it is therefore crucially important that individuals gain clarity regarding average attorney salaries in their state prior to beginning new jobs.
New York State attorneys enjoy the highest average salary in the nation, earning a median pay of $96,041 USD each year – which represents a substantial increase from the national average of $52,000 USD, but may still fall short in covering living expenses in some cities.
To determine the average attorney salary in your region, compare all salaries in your state. The Bureau of Labor Statistics maintains a database with attorney salaries organized by state; you can access this information on their website and plan your budget and choose a location best suited to your needs.
Starting salaries for lawyers depend on both their employer and level of experience, with government jobs typically using the General Schedule (GS) pay scale set forth by the U.S. Department of Justice; annually published salary tables by OPM provide both base pay and locality pay per geographic region for this payscale; additionally attorneys employed by DOJ may receive extra compensation in regions with high cost-of-living issues.
Law clerk salaries average $29,820 annually in the US. Their duties typically involve researching cases, preparing legal documents and aiding judges in making decisions as well as documenting judicial proceedings. Law clerks can be found working at courts, government agencies and private corporations as well as occasionally promoted into paralegal or assistant law librarian positions.
Firm salary averages
Lawyer salaries depend on a number of variables, including where and how much a law firm pays its associates. Typically, the higher up a law firm ranks, the more money its attorneys can expect to make; this is especially true of large firms where lawyers often represent wealthy clients at higher premiums; nonetheless it should also be remembered that starting salaries for new attorneys average around $120,000 annually which provides enough financial cushion to help alleviate student loan debt loads.
Recent data reveals that starting salaries have seen dramatic increases at large firms while not at smaller ones; median first-year salary at small firms has barely doubled over 15 years, reflecting an alteration to their business models that has increased competition leading to bimodal salary distribution.
While most newly graduated attorneys begin their legal careers working at large firms, others opt for private practice or public service post graduation due to its more flexible schedule and potential to pursue their desired career paths more freely; plus they often earn higher salaries than those joining large law firms.
Salary potential right out of law school is an attractive draw for new graduates and can help alleviate debt levels after graduating. According to the National Center for Education Statistics, the average law school loan balance stands at an estimated $145,500 and having access to a steady source of income may help decrease this figure significantly.
Most new lawyers will receive a bonus for their hard work in addition to a salary, typically in the form of extra salaries or extra vacation days or other perks. A bonus can be an incentive for new lawyers while simultaneously showing that a firm values investing in its associates.
Milbank announced this increase, prompting rival Cadwalader to quickly match it, with some associates receiving as much as $20,000 additional compensation annually. Other large firms may follow suit due to competition for associates among large firms as well as increasing inflation and wage costs.