Firms paying for associate rent? Forum

[Anonymous User]

Hi All,

I heard from a very senior partner at my firm that the partners are considering eliminating some/most of the office space that we are currently occupying and instead giving associates a set amount of money to use for rent/mortgage payment. Essentially transferring the payment from one real estate (offices) to another (associate homes).

Is this something that you guys have heard of before? I think it's an amazing idea. Sure there will be loss of office culture but I think there are ways around that with in-person parties or appreciation months or something of that sorts.

I'm in a satellite office of a V50. I'm not sure how prevalent this will be but it's interesting to discuss.

[Anonymous User]

I find this unlikely, for a few reasons.
1. This would have to be years down the line -- when leases expire.
2. “Flexible” office space is deeply unpopular -- do you want to not even have your own desk or workstation? (This is made significantly worse when there are summers.)
3. There are all-hands-on-deck events where people Just Need To Be There; having insufficient space for those would be a problem. (Closings where there are last second issues, trial, etc.)
4. This is atrocious for associate development. I think -- and I suspect most would agree -- that 1st-3rd years being in the office lets them build relationships with people and have face-to-face education/mentorship that allows them to go from useless to useful.
5. For people who want to own, you’re even more stuck in the golden handcuffs. I wouldn’t feel comfortable spending my share of this income on a home/condo because ... what if I get fired and can’t afford my mortgage?

[malibustacy]

Right. And are they also going to give out BMWs too?

[Anonymous User]

OP.

I really don't know the details, when/if this will happen, or to the extent that this was discussed. I just know that it actually came up in the partner meeting.

Effect on development aside, I don't understand the comment about BMWs. Is paying for associate rent seen as a supremely luxury benefit? Again, I don't know the details, but I don't see how the partners would "lose" money if they shifted their spending from office rentals to apartment rentals for associates. This would encourage associates to get bigger places to accommodate for a separate office space.

Just to note, I don't know if I am for or against this idea. I literally heard about this today and was curious what others thought.

[nealric]

Right. And are they also going to give out BMWs too?

Reminds me of The Firm (i.e. the John Grisham novel/movie).

[malibustacy]

OP.

I really don't know the details, when/if this will happen, or to the extent that this was discussed. I just know that it actually came up in the partner meeting.

Effect on development aside, I don't understand the comment about BMWs. Is paying for associate rent seen as a supremely luxury benefit? Again, I don't know the details, but I don't see how the partners would "lose" money if they shifted their spending from office rentals to apartment rentals for associates. This would encourage associates to get bigger places to accommodate for a separate office space.

Just to note, I don't know if I am for or against this idea. I literally heard about this today and was curious what others thought.

They're not going to do this. I'm sure partners suggest all sorts of wild things in meetings - in the end, they'll just end up pocketing the cash.

To elaborate - partners aren't investing in associates who are only going to be around 1 - 4 years anyway. They've already seen hundreds of lawyers come and go over the decades. For those that will stick around longer and are proven to be competent, they have other ways to individually reward/motivate those folks. Also, I seriously doubt your satellite office has anywhere near the authority to make such a decision.

[parkslope]

Hi All,

I heard from a very senior partner at my firm that the partners are considering eliminating some/most of the office space that we are currently occupying and instead giving associates a set amount of money to use for rent/mortgage payment. Essentially transferring the payment from one real estate (offices) to another (associate homes).

Is this something that you guys have heard of before? I think it's an amazing idea. Sure there will be loss of office culture but I think there are ways around that with in-person parties or appreciation months or something of that sorts.

I'm in a satellite office of a V50. I'm not sure how prevalent this will be but it's interesting to discuss.

This strikes me as quite unlikely--is that even a tax-deductible expense from the law firm's perspective? I can't imagine any scenario other than law firms using "work from home" as a vehicle to reduce real estate costs and increase profits.

[2013]

This could cause firms a lot of headaches. They could potentially have “offices” in CT/NY/NJ.

[Anonymous User]

Tax man isn't just going to not get their cut

[12YrsAnAssociate]

As an associate, I think partners should absolutely buy our houses, and double our income while they're at it. My mind might change if I make partner. Time will tell.

[estefanchanning]

As an associate, I think partners should absolutely buy our houses, and double our income while they're at it. My mind might change if I make partner. Time will tell.

LOL. this.

[Whatislaw]

As an associate, I think partners should absolutely buy our houses, and double our income while they're at it. My mind might change if I make partner. Time will tell.

LOL. this.

Lol that's a good one.