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Another Firm Stiffs First-Year Associates On Bonuses

Everyone but first-years are happy with the bonuses...

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On Friday Morgan Lewis left fun little voicemails for associates detailing their 2017 bonuses. Well, the voicemail was fun as long as you aren’t a first-year associate. First-years get a big fat goose egg from the firm this year, but 2016 (and earlier) grads will get the expected market rates, set by Cravath two weeks ago.

Sure, the class of 2017 hasn’t been working at the firm all that long, but that doesn’t mean they haven’t been working hard. And while no one is suggesting they get the full dollar amount for a first-year, a pro-rated bonus is appropriate. The firm collects money on (some of) the hours they’re billing after all. Plus the end of the year is when you traditionally recognize good employees, and it just makes sense to give a little something to new employees who meet expectations (not to mention they’ve likely mentally considered themselves employees of the firm since the start of their 2L year over two years ago). Maybe the firm saves a few thousand dollars per associate, but isn’t their appreciation and loyalty (not to mention avoiding the bad publicity) worth that much?

UPDATE: More tipsters reached out with clarifications about first-year bonuses. According to them it is the firm’s calculation of the fiscal year that screws over the new associates. Still sucks when you look around and all your colleagues got a nice, fate bonus and you’ve got coal in your stocking (not to mention the twinge of regret when you see classmates that chose other firms receive a pro-rated bonus):

Morgan Lewis operates on a fiscal year ending September 30 and its bonuses are based on calculation of hours and other factors from September to September.  First years did not start until October and are therefore not bonus eligible.

Here are the the bonuses Morgan Lewis is giving out, as per tipsters:

2017: $0 (they don’t give pro-rated bonuses)
2016: $15,000
2015: $25,000
2014: $50,000
2013: $65,000
2012: $80,000
2011: $90,000
2010 and earlier: $100,000

In order to receive the bonus, associates must have a satisfactory year-end performance review with a 1900 billable hours requirement. A wrinkle to the hours requirement is the firm has a “pro bono challenge” which stipulates at least 20 of the counted hours must be pro bono.

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The firm also provides additional discretionary bonuses for the best associates, though as one tipster noted, “nobody knows how or why those are decided.”

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headshotKathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

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