One BigLaw Firm Abandons the Billable Hour
Thursday, November 20, 2014

BigLaw labor and employment firm Jackson Lewis says that it is eliminating the billable hour in 2015 for its associates, who will now be measured on client service, responsiveness, and efficiency as well as how good a team player they are and how committed they are to pro bono work.

So are people in hell now being served ice water?

According to a quote from firm chairman Vincent Cino in an American Lawyer article,

“The billable hour is directly opposed to the best interest of the client and to the provider of service because by its very nature it adds an artificial barrier to the accomplishment of the only real objective, which is a quality legal product for a set and expected price.”

Yes, this is good for Jackson Lewis associates.  Instead of having to deliver 1,900 billable hours per year to qualify for a bonus, they will now be tasked with delivering real value to their clients and community.   And maybe will even be able to carve out a few hours for a life outside work.

The real beneficiaries here should be the firm’s clients, which chairman Cino so correctly notes have one real objective:  quality work at a set price.  Which is something that many of my clients, mostly small firms and solos, have been delivering for some time now.

Especially for consumer law, alternative billing solutions simply work better.  The client knows how much representation he or she can afford and will no longer tolerate an open spigot.  Spurred by the economic recession, the market continues to demand transparency on pricing.  And you can’t put the genie back in the bottle on this one.

Several years ago, divorce attorney Lee Rosen was just like many other consumer law attorneys…struggling with ever increasing amounts of accounts receivable. Yet while everyone else was still weighing the “pros and cons” of flat fee billing, he set out to fix his cash flow and in doing so he fundamentally changed his practice – for the better!

As a direct result of this “radical” decision (which many of his colleagues told him couldn’t be done) his revenues have never been higher, his profit margins are larger, and he’s building a lifestyle law firm.

 

NLR Logo

We collaborate with the world's leading lawyers to deliver news tailored for you. Sign Up to receive our free e-Newsbulletins

 

Sign Up for e-NewsBulletins