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Does anyone have experience being the first ever summer associate at a firm or insight into what that may mean for job prospects after this summer. Should I expect an offer?

FWIW - I'm a 2L summer associate at a 20ish lawyer firm. The firm has had 1L summers before, but never a 2L. They do management side L&E and various transactional work. Pay is probably market (but I have no idea what market is because its not a major market).

I don't think anyone can answer this question. My expectation is that the firm would continue hiring 1Ls if they didn't have a hiring need so I would expect they believe they can offer you. But that might change because those sort of things do change at smaller firms. Just work hard and see what happens. If you're especially nervous, ask someone you trust at the firm if there's a possibility of an offer.

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i guess it's nice that they hire 1Ls so that 2Ls aren't wasting their time at a place that probably won't result in an offer? so maybe the pivot to 2L means it's a conscious decision that an offer is at least contemplated? and the fact that they told you this... is good news?

Just treat it as a ≈10 week interview. There's nothing else you can do at this point. Good luck.

I was the first ever summer at a large investment bank, continued to work part time during 3L, then stayed on for 2 years after graduating before lateraling. Not a law firm, but a similar situation. Feel free to ask any questions here or PM me for anything really specific.

As others have said, the best thing you can do is treat it as a 10 week interview. I'm sure that my willingness to stay on part time during 3L made a huge impact on their decision to hire me post grad.