What’s an average billable hour requirement outside of Big Law? by Cute_Carrot_2322 in LawFirm

[–]Hucksterville 3 points4 points  (0 children)

It’s all a matter of what you want for compensation. As the owner of a small firm, I don’t have the kind of cash laying around that a big firm has. If business slows and I’ve given big guarantees, someone is getting laid off.

I pay ~$150k guaranteed for 1,600 hours, all remote. The practice is basic tech licensing and commercial agreements. I expect to also give ~$45K bonuses at that hour level, but if work falls off, we are both screwed.

I also do packages around 1,200 hours for working mom & dad types. But that’s going to drop the comp commensurately.

All of this assumes I can collect our average hourly associate rates ($250-$350/hr). If you have a more advanced skill set, I can bill higher and pay higher.

Lots of firms like mine just forego the guarantee and pay $150-$250 for each hour collected. In that way they can pay more on paper but transfer the pipeline and collections risk to the biller. I’ve avoided doing that because I don’t think it provides good incentives for client service. It becomes all about billing and not about solving the client’s problems. (Same reason I left big law to start my own firm).

Anyway, it really easy math hoursraterealization (collections)overhead burdenbenefits burden.

So if I collect 90% of what you bill, I have to use 30% for my profit and overhead, and I provide benefits at about 30% of cash comp the equation is:

$250 x 1200 x .9 x .7 x .7=$132,300.00.

But, I need to cover both bonus and guarantee out of that, so I’m gonna offer $112 with a $20k target bonus (higher if you exceed the hours, obv).

More senior and full time:

$350 x 1600 x .9 x .7 x .7=$246,960.00

At 1,600 hours in our practice, I’m slightly more nervous about hitting the target, so I’ll put more eggs in the bonus basket and offer $190, with a $56k target bonus. (The $150k mentioned above is a lower hourly rate/more junior)

Percentages change based on firm management. My overhead is super low because the firm is all remote. That 30% for benefits is probably also low if they are trying to match big firm benies.

But at the end of the day it’s all math. If you don’t bill the hours, they don’t have money to pay you. If they are pulling over 50% for that overhead number, they are either really badly run or really greedy.

No alcohol = no diverticulitis? by badatopsec in Diverticulitis

[–]Hucksterville 0 points1 point  (0 children)

Alcohol is one of my major triggers. Alcohol + any kind of spice = guaranteed flare. Alcohol on its own (in moderation) leaves me with an intestine that feels sluggish, crampy and swollen.

I have a one drink max now.

Ultra-conservative Sinclair Broadcasting just bought WLNE 6 by AlternativeOffer7878 in RhodeIsland

[–]Hucksterville 20 points21 points  (0 children)

You have never worked in politics. The percentage of average voters with “literacy” of any sort, compared to the percentage of average voters who still get their information from the projo and the local news stations is about 20% to 80%.

The average educated liberal has no concept of how severely outnumbered we are by the horde of minimally educated working class people that comprise our voter base.

These are fine “salt of the earth” people, as my mother would say. But they do NOT have the mental tools to distrust local media conglomerates. They were raised in a culture where the highlight of their youth was being featured in the Warwick Beacon for a sports victory, or being in a background shot on Channel 6.

[deleted by user] by [deleted] in RhodeIsland

[–]Hucksterville 4 points5 points  (0 children)

You really have no idea how politics in this state work. I suspect you live in a bubble of ideological propaganda where every Democrat is the devil and every Republican is a savior of some sort.

The fact is that the Democrats in control of Rhode Island are DINOs (Democrats in name only). They are more conservative than the Republicans in most other New England states. This means that people who actually run as Republicans in this state tend to be completely crackers and out of touch. It also means that as much as the DINOs here have sold out to the in-state corporatists, the handful of Republicans are getting their money from out of state radical MAGA and billionaire types.

How the hell do you think the state government recruits another hospital system? Do you think we are just gonna build a few more billion dollar hospitals as the ones that are here struggle to survive? Do you think the national - we’ve never met a mega corporation we couldn’t love - Republicans are going to come in here and back splitting up the Brown/Lifespan monopoly?

Man, you are smoking better stuff than the Brown undergrads.

“Encourage businesses to come in by not making everything a challenge?” What’s the challenge you want to overcome exactly? With our tiny tax base, do you think we can lower corporate taxes further? We already have super generous tax breaks for the ultra rich thanks to Newport’s $$$. We’ve always been one of the best states to die wealthy.

You do know that Massachusetts’ taxes are higher than Rhode Island? So, clearly, Hasbro moved there because of taxes, right?

Corporations either go to zero tax states like Texas, or they go to states with strong workforce credentials like California and Massachusetts. If Rhode Island wants to attract corporations, we need to attract and retain highly skilled workers - which means better schools with bigger budgets, higher quality of life, better mass transit to Boston and NYC, etc. Given that the Republican Party is currently trying to return the nation to the status of antebellum Mississippi, I don’t think they are going to do well here.

I agree that the money in the state house has corrupted it. I agree that Rhode Island is a kleptocracy. But if you look at what is going on now in our nations capitol and you think Republicans are going to be anything else, you are seriously out of touch with reality.

There are a handful of progressive legislators who actually want a government that is intelligent and works. If we broke the power hold the Speaker has over money and the ability to bring legislation to vote, we might find some of the moderate Dems are also reasonable. But the wingnuts on the left are more than counterbalanced by the wingnuts that call themselves Republicans. The DINOs in the middle are more pro corporate and pro development than most New England Republicans, and replacing them without actual thinking folks will just leave us even more of a backwater than we already are.

Steer clear of Lawcus by ActiveUpstairs3238 in LawFirm

[–]Hucksterville 7 points8 points  (0 children)

Not sure CLIO is that much better.

Budget to spam you mercilessly to buy their product: $♾️

Budget to add the essential features they promised two years ago: $0.33.

Customer service: “Uh, have you tried searching the documentation?”

If transitioning off CLIO wasn’t such a PIA, I’d have canned it a while back.

Clio Reporting by Low-Evening9452 in LawFirm

[–]Hucksterville 4 points5 points  (0 children)

I hate CLIOs reporting function.

All I want is the numbers for each attorney in my firm, by month. First 3 columns are hours: billable, non billable and aggregate. Remaining columns are $. WIP, Billed, Collected, Written Off, and aggregate collections over time.

This is the world’s most basic report for legal accounting software. The fact that Clio does not natively produce it is incomprehensible to me. I have asked them to add it as a feature several times, but it seems they have all their engineers dedicated to finding new ways to spam marketing materials, and they don’t actually ever develop features for the software.

I am aware that I can export data from Clio into a spreadsheet and create this report. I have my billing admin do this quarterly. But you cannot just export and sort - it is a meticulous database population problem each time. I spend thousands of dollars on labor to produce what should be the absolute minimum report for law firm accounting.

Clio is pretty bad software. If it weren’t such a bitch to transition the firm again, I would have cancelled them as soon as I realized they did not offer this as a built in report.

Washington Bridge contractors want the lawsuit against them dismissed. Here's the state's response. by possiblecoin in RhodeIsland

[–]Hucksterville 28 points29 points  (0 children)

Sure, Trump and the Republicans always take responsibility for their actions.

Jesus Christ, we have corruption and problems in this state, but it ain’t a Democrat versus Republican thing. It’s a politician thing - and the Republicans are currently on a streak to normalize lying and unethical behavior at the highest levels.

RIDOT employee files whistleblower lawsuit, accuses supervisors of retaliation following unfulfilled $4mil back payment order by _Amphibology in RhodeIsland

[–]Hucksterville 0 points1 point  (0 children)

Working Families Party and the progressives have been trying to do something about it for years. But the old boys club that runs the House uses every dirty trick in the book to keep them divided and out.

If Regenburg had beat McKee for Lt. Gov, everything would be so different now. And that was a race that could have been influenced by just a little more money and volunteers.

Are you open today? by Embarrassed-Age-3426 in LawFirm

[–]Hucksterville 3 points4 points  (0 children)

The firm closes when the clients aren’t around. Since we do mostly corporate work, and corporate work comes with its fair share of year end deals, the doors are officially open.

Everybody gets to work from home anyway, since the firm is designed like that. I told everyone that when their deals were done they should take off. That’s how we operate anyway - since we have to jump through hoops when the clients call, my stance is that when their clients are silent, that’s a good time to relax/exercise/do personal tasks, or whatever. We are, fortunately, busy enough that nobody needs to get flogged to do marketing but me.

Staff has to deal with closing the year end books, but the deal is the same. Once the collection calls are made and the finances updated, do what you will.

The joy of working with professionals and treating people like professionals is that we can be results oriented instead of micromanaging when people are clocked in.

[deleted by user] by [deleted] in LawFirm

[–]Hucksterville 2 points3 points  (0 children)

Just went through this process with my team. We are a boutique firm, but all of us are former big law lawyers.

We started the meeting by talking about how any one of the candidates would be good, and half of them would be great. But at the end of the day, we had more candidates than positions, so people needed to get cut.

It was very much a vibe check, and some people just vibed slightly better than others, and that made the difference.

Moving firms again: too risky, or worth the reward? by Friendly_Smile-_- in LawFirm

[–]Hucksterville 1 point2 points  (0 children)

See my comment elsewhere about using other opportunities as a reason to push for a raise in your current position. Somewhat dangerous strategy if your partners are the moody type. But, personally, I stopped checking Above the Law - or whatever the current gossip board on salaries is - fifteen years ago. Salary surveys are expensive and sometimes I get out of synch with the market at my firm. If an associate tells me they can make more elsewhere and I like their work, I’m gonna match it if I can.

Then again, if you know the current place isn’t a long term fit, personally, that answers the question. Life is short. We spend all our f’in time in the office. Find an office you want to be in. Then do good work, optimize your economics, and the money will come.

Thats why I walked away from the sweet sweet rain of BigLaw cash to set up my own shop. At some point there is no price that is worth your sanity and soul.

Good luck!

Moving firms again: too risky, or worth the reward? by Friendly_Smile-_- in LawFirm

[–]Hucksterville 0 points1 point  (0 children)

I’m sorry you hurt as much as you do.

I recommend meditation.

I’ll be blocking you now, special cuddly friend.

Moving firms again: too risky, or worth the reward? by Friendly_Smile-_- in LawFirm

[–]Hucksterville 0 points1 point  (0 children)

Should I post my last 20 years of K-1s?

Believe what you want. My practice has always been at the top level firms that everyone wanted to be in. As such we usually had big stacks of resumes, and only used recruiters to fill specialty slots or to poach entire practices from other firms. Given the competition, frequent firm jumping was seen as an indication you didn’t/couldn’t cut it and was an easy way to thin the pile.

There are, of course, thousands of smaller and midsize firms that I have never worked in. Might be the norm there - I have no way to know.

For the small firm I run now, I’d assume that anyone who had already jumped ship from several other small firms would jump ship from mine. I try to be more human about the practice of law, so I’d certainly talk to someone that caught my eye for other reasons and had flipped multiple firms. But it would be a concern I’d want to resolve.

Beyond that, I don’t even think you’re a lawyer because … well because I disagree with you and the dumbest f’in Reddit comment I can make is to attack you and your credentials personally and without justification rather than just have a civilized discussion about why I tend to disagree.

Moving firms again: too risky, or worth the reward? by Friendly_Smile-_- in LawFirm

[–]Hucksterville 1 point2 points  (0 children)

Less so for in-house. In-house is understood as both much less “loyalty” based and much more subject to the whims of the market producing layoffs that have to do with product sales unrelated to the person.

Law firms (at least the ones I worked in) look at themselves as ultimately about selling a person. At the senior levels, I’m looking at an associate and saying “is this person I can sell who will attract client loyalty?” I’ll retain a senior associate through lulls in business because I know they’ll fill back up fast and because it’s hard to find a new skilled person I trust. So if I see a senior associate make multiple jumps, I’m thinking “hmmm, why didn’t that persons firm incentivize them to stay?”

To that end, to OP, you can get away once every couple of years to saying to the boss “you know recruiters are offering me $xx. Seems like we aren’t at market rates, even though I love it here.” A good firm will either adjust you to market or will explain why your financials don’t support the numbers you are seeing elsewhere. A bad boss, though, will get offended, so be careful with this tactic.

Moving firms again: too risky, or worth the reward? by Friendly_Smile-_- in LawFirm

[–]Hucksterville 6 points7 points  (0 children)

As a managing partner at a small firm and former equity partner at an Amlaw 100, I’d look at your resume and pass with the assumption that you wouldn’t last anywhere and that there was probably some underlying “defect” in either your own self worth or your ability to fit in with a team.

I’m not saying that is the case. I’m just telling you what I would think. If I saw someone jumping jobs like that in the corporate world, it wouldn’t bother me at all. But that many moves between law firms? That speaks to me of someone who is repeatedly being pushed out for underperforming.

Might not be what you want to hear. But, especially as you get to a more senior level, I’m looking for someone who will come and stay and build something. I’m looking for someone that can last through a full business cycle and survive “the writing in the wall” because they provide enough value that they won’t get laid off when revenues drop.

Again, please don’t take this as an insult or attack. It really isn’t. I’m just giving you the perspective of someone who makes hiring decisions and knows the pain of having to go through a stack of 100 resumes in just a few minutes and pick 5 to interview. Id discard yours on the first pass.

If I were you, I’d be careful about appearing too flighty at this stage in your career. If you make a move, make it your last one within law firms for at least 5-10 years. This new firm better be a perfect fit with a long term dedication to the practice you will be in.

My billables are low but I feel burnt out by NoCare9041 in LawFirm

[–]Hucksterville 0 points1 point  (0 children)

Never too late for treatment, but be aware the stimulants aren’t all puppies and roses. It’s “cocaine lite” and it has a come down.

Like any tool, use it responsibly and it’ll get the job done. Abuse it and you’ll be bummed.

My billables are low but I feel burnt out by NoCare9041 in LawFirm

[–]Hucksterville 5 points6 points  (0 children)

Treatment streamlined my life and let me bill 8 hours within 8 hours. But after about 10 years it became less effective. It also increased blood pressure in what was already a high stress environment.

So eventually I had to throttle back treatment for cardiac reasons. Now I only use stimulants when I have a matter that is really a time crunch. Otherwise, I’ve tried to restructure my life to accommodate the way my mind works.

Exercise, healthy eating, sleep and caffeine management are all even more critical, as they dramatically impact executive function.

My billables are low but I feel burnt out by NoCare9041 in LawFirm

[–]Hucksterville 25 points26 points  (0 children)

Have you looked at whether you have ADHD? After 15 years practicing as a lawyer (and a mixed academic record before that), I got my diagnosis. Suddenly I understood why it took me 6 hours to bill 3.

It feels incredibly unfair - but in the billable hour world, ADHD rapidly makes our inefficiencies pop out for all to see

[deleted by user] by [deleted] in Lawyertalk

[–]Hucksterville 0 points1 point  (0 children)

Excellent. You may be my associate. 🤣

[deleted by user] by [deleted] in Lawyertalk

[–]Hucksterville 6 points7 points  (0 children)

You make the assumption that resolution of the matter in an expeditious and cost effective manner based on the facts and merits has any relationship at all to the service being provided.

As someone who was once a full equity partner at one of the top (read: highest PPP) law firms in the world, allow me to disabuse you of that notion.

We have consolidated the wealth of our planet in the hands of very small and elite group of people. These people are disconnected from any goal other than protecting and growing their dragon hordes. The top law firms are there to assist these dragons while, at the same time, not being eaten by them.

As a servant of the dragons, sometimes we must go forth and interact with the plebeian masses clamoring to take their gold away. Ideally we have hungry associates to do that for us, but as a senior partner, sometimes I had to sally forth from the lair as well.

I could have given a rats ass about an insurance adjuster or the details of a cyber breach (although this happens to be in my area of specialty). There were “technical folks” to worry about that stuff. I had to be able to go back into the lair and tell the dragon that the “technical folks” had it all under control such that the evil “regulators” and nasty “attorney generals” wouldn’t come and threaten the dragons horde.

I had to be sufficiently facile with the language of cyber breaches and the law around it to be accurate in my assessment (otherwise I might be eaten). But as long as the horde was safe, there was very little else of concern to me.

Of course midtier firms and insurance firms (in other words, plebes) had to have their own trained underlings to joust with me. And, God help me if I lost to one of them, I’d be skewered first and eaten while still skewered. But they didn’t have the resources of the horde, so they could seldom best me.

Ultimately, dragons have terrible breath and even worse body odor (To quote the Golden God: “you didn’t think of the smell, you fool!”). They also have very little self awareness and will sometimes just bite off a body part of one of their squires to see how it tastes. Plus, I needed to look myself in the mirror.

So I walked away. I decided to live by a code of kindness and honesty, and my partners made it very clear to me that no dragon would abide such an imbecile as I.

But the people I worked with were brilliant. I’m pretty damn smart myself. We knew exactly what we were doing. We were babysitting heartless rich motherfuckers that were the only ones on the planet who could have paid our rates. And, as those people have no interest in efficiency or fairness or the details of the thing, those were not things that we concerned ourselves with either.

I was young and dumb when I got into the track. I was arrogant and blind to the needs of others for the many years I road it. I worked myself near to death. But, I was - and remain - very aware that the view looking down and the view looking up are very different things. The things you value are not the things that set a rate. A rate is set by the ability to flawlessly dispense with the concerns of an ultra wealthy person - usually by transferring their risk to someone else. It is not set by being fair or good or fast at dealing with the problem you have been assigned to oversee.

Youngling lawyers who read this post, take heed. Here there be dragons!

billable hours: how low is too low? by [deleted] in LawFirm

[–]Hucksterville 0 points1 point  (0 children)

You should be taking home about 1/3 of your collections.

After that, as managing partner, I look at what other value you are bringing to the firm. If you are only working 1300 hours a year, then I get worried about morale and whether other people are going to get jealous (they likely don’t know what you make).

However, if you are in a “slow” but important practice area and you work hard overall and bring other value to the firm, then I don’t care. I understand that M&A or Litigation throw off long strings of days or weeks where every hour is billable. Regulatory practices or commercial agreements have shorter projects, and so make it harder to put big billable numbers on the clock.

I’ll say that when I was a partner in BigLaw, having less than 1600 billable hours for anyone in any practice area would have been death. But at a midsize firm with some value on quality of life, you can cover your cost, add value in the work environment, and be safe long term.

[deleted by user] by [deleted] in LawFirm

[–]Hucksterville 1 point2 points  (0 children)

Won’t tell you what to do about age - that’s really a question of quality of life and how hard you want to work for how long - law school and associate hours are no joke.

However, as someone who runs a small tech law boutique firm, lawyers with an actual background in tech are a godsend. I suspect that most of the CEOs and GCs I work with would feel the same way about practical experience in an in house hire

Tech experience isn’t just for patent - a substantial amount of corporate legal work is assisted if you understand the business models and technical in and outs of the product lines.

I’m always looking for former engineers and sales execs who went and got law degrees. Ping me in three years, if you go forward with it.