• Senior associates saw billing rates increase over 8% in 2024, with some exceeding $1,000 an hour.

• Average associate billing rates rose modestly by 3.1%, with rates for junior associates declining.

• Firms are leveraging experienced associates more heavily in revenue-generating practices.

• Paralegal rates dropped as firms shift certain tasks to automation and artificial intelligence.

Experienced associates in law firms saw the sharpest rise in billing rates between 2023 and 2024, according to the ELM Solutions 2024 Real Rate Report by Wolters Kluwer, cited by Law.com.

• Rates for senior associates in the top third quartile increased by 8.1%, from $735 to $795 an hour.

• “You’re getting some associate rates cresting to over $1,000 an hour, as much as some junior partners, said Jennifer McIver, director of legal operations and industry insights for Wolters Kluwer ELM Solutions and one of the authors of the report. 

• “Those more senior associates — that’s where you saw the biggest level of change,” she added.

Broader Rate Trends

• While senior associate rates surged, the overall average for associates rose modestly by 3.1%, from $579 to $597 an hour. Median rates also climbed by 3.7%, reaching $523 an hour.

• By contrast, partner billing rates saw less dramatic growth, with average rates increasing by just 1.4%, from $792 to $803. Median rates barely budged, rising from $677 to $680.

The increased reliance on experienced lawyers and reduced billing for first- and second-year associates highlight shifting priorities.

Paralegal Rates Drop

Paralegal rates, meanwhile, fell slightly, from $263 to $258 an hour on average. McIver attributes this decline to increased automation and the use of artificial intelligence to handle routine legal tasks.

“Because you’re probably shifting that work, and it’s a sign of the times with artificial intelligence. That work may be becoming more automated,” she said. I think a lot of organizations are not paying for those first and second-year associates.”

Nuances in Rate Changes

Despite the upward trend, not all rates increased. Nearly 29% of timekeepers in the Wolters Kluwer dataset maintained their rates from 2023 to 2024. However, 17.8% saw rate increases of 10% or more.

McIver noted that firms are catching up after freezing rates during the COVID-19 pandemic.

• The largest rate increases were observed at Am Law 50 firms, which raised rates by 7.1% on average. 

• Smaller Am Law 200 firms also saw significant increases, with firms ranked 151–200 reporting an average hike of 5.7%.

As law firms rely more on senior associates, they face challenges balancing cost-conscious client demands with the need to attract and retain top talent. The rising rates reflect a recalibration of firms’ leverage strategies, focusing on high-value work handled by experienced attorneys.