Overall attorney income in Florida is holding steady, but many of the state’s lawyers are pessimistic about the future.
Forty-six percent of the lawyers responding to The Florida Bar’s 2008 Economics and Law Office Management Survey said their practice has worsened due to the economy and 43 percent expect a decrease in profitability over the next two years.
Lawyers in the central/southwest part of the state seem to be the hardest hit so far, with 52 percent of respondents saying they have seen decreased business over the past two years, compared with 40 percent of their northern colleagues and 44 percent of those in southeast Florida.
When asked how they expect the economy to impact their practice in the next two years, 43 percent of respondents anticipate a decrease in profitability, compared to 30 percent who said it will remain the same, and 12 percent who expect improved profitability. Fifteen percent said the economy does not impact their practice.
When asked in 2008 to list the average salary levels for attorneys in their firm, the compensation levels were the same as reported in the 2006 survey — except in the case of partners, where compensation levels fell by $20,000.
Survey respondents indicated associates fresh out of law school averaged $50,000. The median for lawyers with fewer than three years of experience was $65,000, compared with $75,000 for those in practice three to five years, and $90,000 for those with six to eight years of experience. Associates with more than eight years experience had a median salary of $110,000.
The poll is taken every other year to keep lawyers informed on what their colleagues are doing in various areas of law office management. This year’s survey was completed by 409 lawyers from a sample of 2,770 in-state members. The 15 percent response rate gives a 5 percent margin of error, according to Mike Garcia, director of the Bar’s Research, Planning, and Evaluation Department.
Florida lawyers in private practice also reported spending an average 50 hours each week in the office and billing for 29 of those hours — numbers similar to those reported for the past six years.
The median 2007 net income of $110,000 for Bar members was the same as in 2005. In 2003 the median net income was $100,000 compared with $85,000 in 2001, $82,000 in 1999, and $75,000 in 1997.
The survey found 80 percent of Florida lawyers are in private practice, while 14 percent are government lawyers or judges. The remainder work as corporate counsel, for legal aid offices, or for other employers.
Sixty-six percent of respondents reported working in a firm or other legal setting with five or fewer lawyers, while 12 percent say they work with 26 or more attorneys. Overall, 77 percent work in firms consisting of 10 or fewer lawyers, with 32 percent indicating they are sole practitioners.
Overall, 2007 net income reported in the survey ranged from zero to $2 million.
The 2007 median net incomes broken down by legal classification are as follows:
• Partners, $180,000.
• Corporate counsels, $110,000.
• Sole practitioners, $100,000.
• Associates, $90,000.
• State government attorneys, $60,000.
By gender, the survey found the average male lawyer netted $125,000 in 2007 and female lawyers earned, on average, $75,000. The typical male lawyer, however, has been in practice for 18 years compared to 10 years for female lawyers, according to the survey. When comparing males and females with five or less years of experience, the survey showed males earning an average of $75,000 compared with $62,400 for females. One reason for that disparity, Garcia said, is that newly admitted women lawyers are going into government practice at a greater number than their male classmates. Two years ago, the survey found the net income of male and female lawyers with five or less years experience was equal.
Respondents also reported 50 percent of their offices’ gross receipts in 2007 went to pay the lawyers in the office, while 20 percent went to support staff salaries, and the remaining 30 percent paid for all the other firm expenses, percentages that all held steady over the past six years.
Nearly two-thirds (63 percent) of all respondents report working at least 50 hours per week, while 23 percent work at least 60 hours a week.
Billable Hours
The poll showed that 72 percent of all respondents maintain billable hours, and, for those who keep them, 49 percent billed 1,600 hours or more in 2007. Of that group, 37 percent reported that they billed more than 1,800 hours in 2007.
Eight percent billed between 1,401 and 1,600 hours; 10 percent billed from 1,201 to 1,400 hours; 10 percent said they billed from 1,000 to 1,200; and 23 percent less than 1,000 hours.
The survey found 91 percent of respondents list their hourly rate at $150 or higher (up from 83 percent in 2005), 69 percent report they charge $200 or more (up from 60 percent), and 18 percent bill $300 or more an hour, the same as two years ago.
Seventy-five percent of respondents in private practice report they always use written fee contracts.
Contingency Fees
Just under half (45 percent) of all respondents report their firms handle contingency fee cases. Of those who accept cases on a contingency basis, the majority say those types of cases comprise less than 25 percent of the total cases they handle. The study found no significant difference since 2000 in the percentage of cases that are handled on a contingency fee basis. Sixty-three percent of those who handle contingency cases report their firm receives 30-39 percent of the amount awarded if the case is won.
— Courtesy Florida Bar News