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Associates May Have Closer Eye On How They Are Billed Out
Hourly rates can be a moving target as clients negotiate down firms' published rates, but in a low-demand era where lawyers need every dollar they can bring in, it seems associates are the ones troubled lately with how rates are set.
A recent lawsuit and a disciplinary action from last year both lifted the hood on how law firms price their talent and how it may differ internally from what the public and clients are told.
The question becomes whether clients and associates should have any say on law firms' profitability models. Some firms and consultants have suggested not, but others have noted that any attorney whose compensation is in part tied to their billable rate should be aware of what they are charged out at and what a client actually pays.
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