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Hoc Committee on on Billable Hours Model Talking Points |
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Model Talking PointsWhat is the Ad Hoc Committee on Billable Hours?What is the Ad Hoc Committee on Billable Hours working on? What is the Committee doing to address these issues? Will the Committee issue a report on its findings? Q: What is the Ad Hoc Committee on Billable Hours? A: ABA Immediate Past President Bob Hirshon established the ABA Commission on Billable Hours in August, 2001, to examine the effect of the billable hours system on lawyers and the culture of law firms. His concern was that the billable hours system may be contributing to lawyer dissatisfaction with quality of life issues, and that relying on such a system to measure lawyer value ignores many other valuable contributions that lawyers make, that do not easily fit into the billable hours rubric. The ABA Section of Business Law, enthusiastic about the continued study of the impact of the billable hour, now houses the entity, renamed the Ad Hoc Committee on Billable Hours. Q: What is the Ad Hoc Committee on Billable Hours working on? A: The Committee is examining the effect of the billable hours system on lawyers and the culture of law firms. The Committee is concerned because, according to the National Association for Law Placement, young associates in law firms have an attrition rate of roughly 40% in the first three years. Surveys show that lawyers leave their jobs in
law firms with high billable hours requirements for jobs where they
have more control over their working hours - for example, in corporate
legal departments and professional service firms. Pro bono work is in danger of dropping off, given the increasing demands of billable hours. Lawyers' public service in their communities
may drop off, since they don't have time to contribute their many
talents outside of the office. Q: What is the Committee doing to address these issues? A: The Committee is exploring alternatives to the billable hours system, as well as innovative ways to work within the billable hours system, to see if there is a better way to meet lawyers' expressed dissatisfaction with quality of life issues. Surveys have shown that some lawyers do leave the profession because they want a more satisfying work/life balance. Many lawyers say they are dissatisfied because they feel "chained to their desks" and isolated from participating in firm culture. Mentoring in firms also is declining because billable hours pressures do not allow for such activities. Thus, newer lawyers don't gain as much guidance or training from senior lawyers in the firm as would be optimal. Q: Will the Committee issue a report on its findings? A: Yes. Note that the ABA Commission on Billable Hours, from which the Committee stems, issued its final report at the ABA Annual Meeting in August 2002. Since the billable hours system will never be completely eliminated, the report recommends innovative billing methods that will provide a more accurate measure of value to clients, as well as ways to enhance the billable hours system while making the practice of law more rewarding. The report examines the pros and cons of several alternatives to billable hours that are currently being employed in firms around the country, such as:
The Commission focused on recommending innovations in hourly billing systems that reflect value to the client, and enhance the professional development and satisfaction of lawyers. Click here to proceed to the next section.
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