Losing Lockstep: Luce Forward Bases Associate Pay on Practice Area, Hours

Luce, Forward, Hamilton & Scripps has ditched lockstep pay for associates in favor a 14-level compensation system based on practice area and hours worked.

Under the system, first-year associates can earn from $145,000 for 1,950 hours to $165,000 for 2,100 hours, the Recorder reports. The flexibility means that a third-year associate working the maximum hours in a high-rate practice area could make more money than someone with two more years of experience working fewer hours in a lower-rate area.

The San Diego-based firm has 222 lawyers.

Managing partner Robert Bell told the legal newspaper the system allows the firm to attract top producers while accommodating lawyers who prefer fewer hours or less profitable practice areas.

"We can accommodate more people,” he said. "If we put all first-years at 165 [thousand dollars], there are some people who wouldn't be profitable. But, at 145, they are profitable."