Do firms enforce bar prep / fees clawback if you leave to clerk? Forum

[haldren2198]

I've accepted a big law offer and it includes the typical entry level stuff: bar exam fees, prep course, and a salary advance during 3L summer. The offer letter notes that I will owe the firm a refund of the bar and prep course fees if I leave within a year of starting.


I'm starting to get more interested in clerking and would like to apply for clerkships that go from 25-26. If I can get one, I realize that most clerkships start around Aug / Sept. I think my firm usually starts in early October, so I would be about 11 months into work.


I'm not going to base any decisions on something that would end up being like $5k, but do firms usually actually enforce that clawback provision in this situation? I totally get it if you leave after 2-3 months to go to a different firm, but this seems different (since there's often an assumption that you'll return).

[Anonymous User]

I've accepted a big law offer and it includes the typical entry level stuff: bar exam fees, prep course, and a salary advance during 3L summer. The offer letter notes that I will owe the firm a refund of the bar and prep course fees if I leave within a year of starting.


I'm starting to get more interested in clerking and would like to apply for clerkships that go from 25-26. If I can get one, I realize that most clerkships start around Aug / Sept. I think my firm usually starts in early October, so I would be about 11 months into work.


I'm not going to base any decisions on something that would end up being like $5k, but do firms usually actually enforce that clawback provision in this situation? I totally get it if you leave after 2-3 months to go to a different firm, but this seems different (since there's often an assumption that you'll return).

I can't speak for all firms, but I know that at least some forgo the option to claw back for clerks in hopes that the clerk will come back the following year, as you suggest. I believe my V20 does this. You're right that this is probably more directed at folks who lateral elsewhere or go in house quickly.

I would recommend talking to your firm to let them know about your interest in clerking and politely/casually ask about the clawback provision. They may say it's a hard policy, but it can't hurt.

[soft blue]

I've accepted a big law offer and it includes the typical entry level stuff: bar exam fees, prep course, and a salary advance during 3L summer. The offer letter notes that I will owe the firm a refund of the bar and prep course fees if I leave within a year of starting.


I'm starting to get more interested in clerking and would like to apply for clerkships that go from 25-26. If I can get one, I realize that most clerkships start around Aug / Sept. I think my firm usually starts in early October, so I would be about 11 months into work.


I'm not going to base any decisions on something that would end up being like $5k, but do firms usually actually enforce that clawback provision in this situation? I totally get it if you leave after 2-3 months to go to a different firm, but this seems different (since there's often an assumption that you'll return).

The real answer here is that if you leave on good terms, some senior associate or partner will happily write it off, policy be damned. That's comfortably within their budget and discretion.

[Anonymous User]

Not for clerking (offer was accepted, expected that I would return still) but as soon as I changed firms during the clerkship, yes.

[Anonymous User]

The real answer here is that if you leave on good terms, some senior associate or partner will happily write it off, policy be damned. That's comfortably within their budget and discretion.

How did this skate through? What senior associate do you know that has the authority to write off a $50k+ bonus for another associate who is leaving early?

[Anonymous User]

How long does someone have to pay it back? Is it all due immediately?

[Contango]

The real answer here is that if you leave on good terms, some senior associate or partner will happily write it off, policy be damned. That's comfortably within their budget and discretion.

How did this skate through? What senior associate do you know that has the authority to write off a $50k+ bonus for another associate who is leaving early?

The topic asks about clawback of a bar prep stipend. Those are typically $2-3k all-in. Not sure I’m familiar with a situation where a senior associate would have authority to write off even $2k, but it’s more plausible than an associate writing off an entire clerkship bonus.

[Anonymous User]

The real answer here is that if you leave on good terms, some senior associate or partner will happily write it off, policy be damned. That's comfortably within their budget and discretion.

How did this skate through? What senior associate do you know that has the authority to write off a $50k+ bonus for another associate who is leaving early?

The topic asks about clawback of a bar prep stipend. Those are typically $2-3k all-in. Not sure I’m familiar with a situation where a senior associate would have authority to write off even $2k, but it’s more plausible than an associate writing off an entire clerkship bonus.

You're right my bad, but also as you suggest still implausible for even the $2-3k.

[Anonymous User]

How long does someone have to pay it back? Is it all due immediately?

The firm can ask for immediate repayment, but it cannot legally deduct the money from your paycheck in most states and is (probably) not going to sue you over less than $10k. This means you have a lot of leverage to negotiate a payment plan and I have to imagine most firms will play ball with you if you do so.

[soft blue]

The real answer here is that if you leave on good terms, some senior associate or partner will happily write it off, policy be damned. That's comfortably within their budget and discretion.

How did this skate through? What senior associate do you know that has the authority to write off a $50k+ bonus for another associate who is leaving early?

The topic asks about clawback of a bar prep stipend. Those are typically $2-3k all-in. Not sure I’m familiar with a situation where a senior associate would have authority to write off even $2k, but it’s more plausible than an associate writing off an entire clerkship bonus.

I was a little glib there. I don't think that a senior associate could expense that on their own authority, but I would be shocked if they couldn't email a partner and say "this person was good and we should write this off," I'd also be surprised if the partner didn't listen. My point was more that you don't need to impress a partner to get this taken care of.