The latest data from the National Association for Law Placement (NALP) indicates a stabilization in first-year associate salaries across U.S. law firms. As of January 1, 2025, the median base salary for entry-level associates remains at $200,000, unchanged since 2023. At firms with more than 700 lawyers, the median salary is slightly higher at $215,000. Despite some firms offering starting salaries of $225,000, these figures have not become standard across the industry.

NALP Executive Director Nikia Gray attributes this stagnation to a softened market and reduced competition for talent. “Without the stiff competition of the talent wars to push it along, the market is not moving as quickly to follow the few big firms who have announced first-year pay increases as we saw in the last cycle,” Gray stated. Only 32% of law firms reported offering the $225,000 starting salary, with this figure rising to 45% among firms with more than 700 lawyers.

The report also highlights a decline in summer associate hiring, with the median number of offers per law firm office decreasing from seven in 2023 to six in 2024. This trend reflects a shift in hiring focus towards experienced lateral hires amid uncertain demand and falling productivity.

Geographically, the $225,000 starting salary is more prevalent in major cities such as New York, Washington D.C., San Francisco, Boston, Houston, and Austin. However, even in these markets, the higher salary has not become the norm.

The current landscape suggests that while some firms continue to offer higher starting salaries, the overall trend points towards a stabilization of associate compensation, influenced by market conditions and strategic hiring practices.