Paralegal Compensation Survey Shows Solid Increases
(Newtown Square, PA, May 22, 2007) - The 2007 Annual Compensation Survey for Paralegals / Legal Assistants and Managers has just been released. The survey, which reports on eleven distinct paralegal positions in law firms and corporate law departments, was conducted by Altman Weil Publications, Inc. in partnership with the International Paralegal Management Association (IPMA).
“The survey shows solid increases in median total cash compensation for most paralegal positions,” notes Altman Weil principal James Wilber. “These numbers not only reflect solid economic growth in the legal industry, especially among law firms, but also the growth and increasing sophistication of the paralegal profession. Legal organizations that want to attract and retain talented paralegals must compensate them competitively.”
Paralegal Compensation
Nationally, the median salary for Paralegals is $53,500 according to the survey. An annual bonus adds $2,500 to cash compensation. Median overtime compensation is reported at $4,177/year. In law firms, 82.9% of Paralegals receive overtime compensation, as do 28.3% of paralegals in corporate law departments. Total cash compensation nationally for the Paralegal position is $59,973, up 9% from 2006.
Paralegal Managers
Paralegal/Legal Assistant Managers (full-time managers of a paralegal program) take home a median $102,000 in salary nationally, plus an additional cash bonus of $8,500. Only 10% of Paralegal Managers report receiving overtime, and those that do earn just $1,936 in overtime pay. Median total cash compensation for the Paralegal Manager position in 2007 is $109,303, up 7.2% from last year.
Specialists
Paralegals with specialized training or expertise, such as nurse consultants, environmental technicians or CPAs, earn $77,940 in salary, $4,484 cash bonus and $7,824 in overtime. Median total cash compensation for the Paralegal Specialist position in 2007 is $84,000, up 6.5%.
Law Firms vs. Law Departments
Nationwide, Paralegals in law firms earn 9.5% more in median total cash compensation than Paralegals in law departments. Legal Assistant Managers in law firms earn 29.4% more; and, Specialists take home 24.6% more in total cash compensation than their law department counterparts.
Practice Areas
In law firms, Paralegals working in an IP/Patent/Trademark practice earn the highest total cash compensation, $69,675. That’s 16.2% higher than total cash compensation nationwide, and 46% higher than the lowest paid law firm practice area for paralegals - Family Law. In law departments, paralegals in Corporate practice earn top dollar, $70,098, while those in a Government/Legislative practice earn least at $41,523 in total cash compensation.
Billing Rates and Billable Hours
The survey reports median billing rates for Paralegals at $160/hour, up 6.7%. Paralegals billed a median 1,490 hours/year in 2006, up 4.5% from the previous year. Insurance Paralegals in law firms logged the highest number of hours at 1,638 hours/year, followed by Litigation Paralegals at 1,562 hours/year.
Data Collection and Reporting
The 2007 Annual Compensation Survey for Paralegals / Legal Assistants and Managers is based on data collected in spring 2007 from 274 law firms and 78 law departments and reports on a total of 14,052 paralegal positions.
About Altman Weil
Altman Weil Publications, Inc. conducts and publishes numerous surveys on the legal profession including the Survey of Law Firm Economics and the Law Department Compensation Benchmarking Survey. For additional information or to purchase a survey, visit our website at www.altmanweil.com/ParalegalComp.
About the IPMA
The International Paralegal Management Association (IPMA), formerly known as the Legal Assistant Management Association, promotes the development, professional standing and visibility of paralegal management professionals. More information on the IPMA can be found at www.paralegalmanagement.org.
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Contact Information
James Wilber
Altman Weil, Inc.
414.427.5400
jswilber@altmanweil.com
Order the survey: www.altmanweil.com/ParalegalComp
