MSBA RESEARCH NOTES
Legal Profession Trends Highlights SPRING/SUMMER 2019 | VOLUME 1, ISSUE 2
MSBA RESEARCH NOTES
Legal Profession Trends Highlights SPRING/SUMMER 2019 | VOLUME 1, ISSUE 2
Informing our members and curating content to make efficient use of their time is an important role of the MSBA. We hope this MSBA Research product provides insightful data and trends as you consider the evolving nature of the legal profession.
MESSAGE FROM THE PRESIDENT
As we look ahead toward the warmer months that are often accompanied by vacations and travel, this newest edition of the report reflects the important topics affecting the legal field both nationally and in Maryland occurring in late 2018 and early 2019. Staying informed while battling information overload is simultaneously a necessity and a struggle. We strive to bring our Members the most relevant and important issues affecting your profession so you can be better informed and knowledgeable about the ever-changing legal field.
For questions or suggestions for future MSBA Research topics, please email feedback@msba.org
Criselle Anderson
Research Notes Editor Maryland State Bar Association
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Victor L. Velazquez, CAE
Executive Director Maryland State Bar Association & Maryland Bar Foundation
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
Maryland Legal Profession Updates
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MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
M A RYL A N D L EG A L PR O F E S S I O N U PDAT E S
Important numbers
40,806
The amount of active attorneys in Maryland.
0.88%
increase from May 2018 (Source: Client Protection Fund of the Bar of Maryland - April 2019)
THE 10 LARGEST MARYLAND FIRMS ( BY N U M B E R O F AT T O R N E Y S ) :
M A R Y L A N D B A R PA S S R AT E HITS HISTORIC LOWS
1. VENABLE, LLP
The number of people sitting for the Maryland bar examination in February hit its lowest level in more than 50 years, 302 test takers. The 2019 figure slightly surpassed March 1965, when only 279 people opted to take the test.
2. MILES & STOCKBRIDGE, PC 3. MARYLAND LEGAL AID 4. WHITEFORD, TAYLOR & PRESTON 5. SHULMAN ROGERS 6. DLA PIPER 7. OFFIT KURMAN, P.A. 8. BAKER DONELSON 9. GORDON FEINBLATT LLC 10. LERCH, EARLY & BREWER Venable, LLP rose to 1st place, replacing Miles & Stockbrige, PC. Maryland Legal Aid continues at 3rd place while 4th, 5th, and 6th place remain unchanged from 2018. (Source: Daily Record MD’s Largest Law Firms 2019)
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39% passed this February 2019 compared to 38% in February 2018. 43% of University of Baltimore School of Law graduates and 35% of University of Maryland Francis King Carey School of Law graduates passed the February exam. 31 UM Carey graduates and 77 UB Law graduates took the exam in February. (Source: https://thedailyrecord.com/2019/04/16/feb-bar-exam-sees-recordlow-number-of-test-takers)
The UBE is expected to be implemented in Maryland for the July 2019 exam. (Source: https://thedailyrecord.com/2018/12/21/stories-of-the-year-in-law-anew-firm-new-leaders-and-a-messy-dispute)
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
M A RYL A N D L EG A L PR O F E S S I O N U PDAT E S
Important numbers S U R V E Y: F I R S T - Q U A R T E R L AW Y E R O P T I M I S M T O P S 2 0 1 8
Respondents’ overall confidence in the legal market, on a scale of -100 to 100, was 0, which is higher than the index score for all of 2018. The highest overall confidence level last year was -4, reported in the fourth quarter. Overall confidence about the economy fell slightly from 2018. 58% of attorneys working at firms with 3 to 15 attorneys felt positive about the state of the economy versus 60% in 2018. 63% of attorneys who work at firms with 41 or more lawyers, down from 76% in 2018.
Maryland Lawyer’s Confidence Survey: Round 9 QUESTION
INDEX
-100 -80 -60 -40 -20 0
Our firm plans on hiring additional attorneys within the next 3 months
20
40
60
80 100
-31
Our firm anticipates an increase in billable hours over the next 3 months
22
Within the next 3 months, our firm plans to invest or expand in the following areas: Marketing
14
Within the next 3 months, our firm plans to invest or expand in the following areas: New Technology
12
Within the next 3 months, our firm plans to invest or expand in the following areas: Support Staff
-18
Within the next 3 months, our firm plans to invest or expand in the following areas: Infrastructure
-25 24
The overall state of the economy is good
RESPONSES (TOTAL = 467)
0 50 100 150 200 250 300 350 400 450 Disagree Strongly
Disagree Somewhat
Neutral
Agree Somewhat
Agree Strongly
(Source: The Daily Record’s Maryland Lawyers Confidence Index, 3/28/19)
The Latest from the Session M S B A K E Y L E G I S L AT I V E P R I O R I T Y I N 2 0 1 9
During the 2019 Session of the Maryland General Assembly, the key priority of the MSBA was passage of legislation to authorize creation of much-needed judgeships in both the Circuit Court for Washington County and in various Districts of the District Court of Maryland. Judgeships at both levels must be created by statute and budgeted by the General Assembly. Senate Bill 205 – Judgeships – Circuit Court and District Court, introduced by the Maryland Judicial Conference, passed in the waning days of the 2019 Session. The bill provides for 1 circuit court judgeship for Washington County, and for District Court judgeships for Anne Arundel, Baltimore, St. Mary’s, and Prince George’s Counties. Senate Bill 205 takes effect July 1, 2019. (Source: Richard A. Montgomery III, Director of Legislative & Governmental Relations Maryland State Bar Association) 4
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
M A RYL A N D L EG A L PR O F E S S I O N U PDAT E S
Recent Maryland Mergers TWO LOCAL LAW FIRMS MERGE TO FORM A NEW, WOMEN-OWNED PRACTICE IN JANUARY 2019
Two area law firms have merged to create a new Hunt Valley practice, Downs Ward Bender Hauptmann & Herzog P.A. The newly created woman-owned firm is the product of a merger between Cockeysville practice Morgan Carlo Downs, and Towson’s Ward & Herzog. The deal became effective on January 1, and was designed to grow both firms and their services. (Source: https://www.bizjournals.com/baltimore/news/2019/01/08/two-locallaw-firms-merge-to-form-new-women-owned.html)
M I L E S & S T O C K B R I D G E TA K E S A H I T A N D L O O K S T O E X PA N D I N T O D . C . I N A P R I L 2 0 1 9
Miles & Stockbridge suffered a dip in revenue and a big ding to partner profits in 2018 in the aftermath of a lateral raid by a new Big Law rival, Nelson Mullins Riley & Scarborough. Gross revenue dropped 1.7 percent last year to a little more than $114.6 million, and profits per equity partner sank 14.2 % to $411,000. Net income declined 13.3 % to $30.96 million last year. Despite the departures that Miles & Stockbridge reported to its total partner loss, the firm remains the second largest law firm in Maryland. (Source: https://www.law.com/americanlawyer/2019/04/03/milesstockbridge-took-a-hit-in-2018-but-sees-promise-in-dc)
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MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
National Legal Profession Updates
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MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
In-House Counsel News A NEW ANTI-CORRUPTION TOOL FOR I N - H O U S E C O U N S E L : C ATA L O G O F E-GOVERNMENT SERVICES
TRACE International, Inc. announced the launch of its new online tool: the TRACE e-Gov Portal. It is the first comprehensive collection of over 15,000 links to e-government services in 90-plus countries. The site is divided into categories, such as procurement, customs, travel, etc., and the design allows for the addition of new links as more countries come on board with digital services. TRACE will count on the cooperation of individual governments, global business, and compliance communities to expand and maintain the database, according to TRACE president, Alexandra Wrage. The best feature is that the site open publicly to allow any company, law firm, or individual to use it. TRACE is a globally recognized anti-bribery business organization and leading provider of cost-effective third party risk management solutions. Members and clients include hundreds of multinational companies headquartered worldwide, including a location in Annapolis, Maryland. (Source: https://www.law.com/corpcounsel/2019/04/16/a-new-anticorruption-tool-for-in-house-counsel-catalog-of-e-governmentservices/)
“From our perspective, it’s a chance to avoid a shakedown... From theirs, it’s a chance to address the lost revenue associated with bribe-tainted contracts when shoddy goods sell at inflated prices...Solutions that companies, governments and civil society can all get behind are worth a closer look.” - ALEXANDRA WRAGE, TRACE PRESIDENT
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MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
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Legal Technology News LEGAL TECHNOLOGY IS A BIG DEAL AND BIG BUSINESS
$1 billion in 2018 investments. Contrast to $233 million in 2017*
*(Source: https://www.entrepreneur.com/article/321864)
Half of that sum went to ONE company:
AMONG SOME OF THE N O TA B L E I N V E S T M E N T S T H I S Y E A R :
• $100 million reported to e-discovery company Exterro. • $65 million to Atrium, the combination law firm and legal technology company. • An investment in UnitedLex said to be “one of the largest transactions to date with any legal services provider.” • $50 million to Kira Systems, a Toronto-based developer of machine learning software for contract review and analysis. • $30 million to Seal Software, a developer of AI-powered content discovery and analytics products.
“If you compare the legal industry to the tech investments made by the financial industry, you will understand the vast opportunity. JPMorgan’s 2017 revenue was $94 billion, and they spent an astounding $9.5 billion on technology. That is more than 10 percent of their revenue and over 10 times more spend on tech than the legal industry.” - EDEN SHOCHAT, ALEPH VC (Source: https://www.entrepreneur.com/article/321864)
• $25 million to Everlaw, and e-discovery and litigation platform. • $25 million to Logikcull, an e-discovery company. • $17.5 million to Eigen Technologies, a London-based AI company. • $13 million to Tessian, a UK startup that uses AI to secure emails and data for law firms and enterprises. • $6 million to Court Buddy, a San Francisco company that matches consumers and small businesses with a-la-carte attorneys. • $12 million to LawGeex, a company whose AI product automates the review and approval of contracts. • $5.5 million to PactSafe, a cloud-based contracting platform. • $3.4 million in Clarilis, the UK document-drafting automation platform. • $3.2 million to Gavelytics, a judge-analytics platform. • $1.8 million invested in Australian legal tech startup LawPath by LegalZoom. • $1.5 million in Legaler, the Australian legal technology company. • An investment of an undisclosed amount in PracticePanther, the practice management platform. (Source: https://www.lawsitesblog.com/2018/12/20-important-legaltechnology-developments-2018.html)
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MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
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Legal Technology News ARTIFICIAL INTELLIGENCE IN THE LEGAL FIELD
A legal tech startup challenged a group of 20 experienced lawyers to test their skills against its AI-powered algorithm. The task was to review risks contained in several non-disclosure agreements (NDAs). The AI achieved an accuracy level of 94% while human lawyers managed an average of 85%. The AI was also faster, taking just 26 seconds to review all of the documents compared to the human lawyers’ average speed of 92 minutes. 23% of legal work can be automated. There will be many tasks, however, that are beyond the current capabilities of AI. Global business value derived from AI is forecast to be $1.2 trillion in 2018, and $3.9 trillion in 2022. (Source: https://www.weforum.org/agenda/2018/11/this-ai-outperformed20-corporate-lawyers-at-legal-work/?_lrsc=b992505d-a6b2-485bb6dc-1e2935159d69)
Rate of Automation
2018
71% human 29% machine
58% human 42% machine
2022
2025
48% human 52% machine
S L O W PA C E F O R A I & M A C H I N E LEARNING ADOPTION IN THE LEGAL FIELD
44%
offer employee training on the technologies.
12%
weren’t even aware of machine learning being used in their industry.
26%
of legal industry executives said they do not use artificial intelligence or machine learning in their work.
20%
of legal senior executives do not believe that advanced technologies make their businesses more competitive.
“Only government leaders were less likely than law firm managers to report taking advantage of artificial intelligence or other emerging technologies” – RELX GROUP SURVEY
(Source: https://www.law.com/legaltechnews/2018/11/20/survey-finds-legalindustry-in-last-place-in-ai-machine-learning-adoption-397-13985/)
Only 10%
of lawyers used artificial intelligence-based tech tools for their legal work in 2018. (Source: https://www.law.com/legaltechnews/2019/01/11/aba-survey-only10-percent-of-law-firms-are-currently-using-ai/) 9
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
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Legal Technology News LEGAL BOTS AND ACCESS TO JUSTICE
Over the past decade, the number of people qualifying for assistance has increased approximately 25%.
28% of Americans
—89.3 million people—qualified for LSC (Legal Services Corporation)-funded services at some point during 2016.
Only 2%
—1.8 million people—received LSC (Legal Services Corporation)-funded services during 2016.
(Source: ABA Days 2019/LSC Funding fact sheet)
Learn more about our efforts to increase access to justice in Maryland The Maryland Access to Justice Commission, a partnership with the MSBA, unites leaders to drive systemic reforms and innovations to make the civil justice system accessible, user-friendly, and fair for all Marylanders. A R E T H E L AT E S T D E V E L O P M E N T S I N L E G A L T E C H T H E S O L U T I O N ?
DoNotPay is a free app that offers AI-powered legal counsel. It advertises that it can be used to “sue anyone by pressing a button,” and its focus is on suing corporations and navigating the complex bureaucracies that stand between people and their everyday rights. DoNotPay highlights a big problem with the justice system: it doesn’t matter how much protection the law gives you if you’re not aware of it. Unless you studied law in college or are lucky enough to have friends working in the legal profession, it’s rare for anyone to sit you down and tell you what your rights are in specific situations. DoNotPay levels the playing field in many ways. It’s not creating any more legal rights for anyone; it’s just educating them about the rights they already have.
Paladin, which streamlines pro bono management, recently partnered with Dentons (the largest law firm in the world by headcount) to help users access pro bono opportunities without having to seek them out themselves. The need for technology to help solve legal problems was highlighted in one report* that found that 86 percent of civil legal problems among low-income Americans fail to achieve adequate access to legal services. *(Source: https://www.lsc.gov/media-center/publications/2017-justice-gapreport)
Investment in companies like Paladin are designed to provide legal help for millions that will not otherwise have access to justice.
DoNotPay was created by Joshua Browder, who initially developed it to dispute parking tickets. Now, it offers legal advice in all 50 states for a variety of issues from volatile airline prices, data breaches, late package deliveries, to unfair bank fees. Although the service is currently free (and lets users keep 100% of the money they win in court), Browder has said that he’s considering charging for more specialized legal advice in the future. (Source: https://www.theverge.com/2018/10/10/17959874/donotpay-do-notpay-robot-lawyer-ios-app-joshua-browder) 10
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Legal Disruptors “There is no single technology, provider, buyer, or legal ecosystem stakeholder that will unilaterally transform the trillion-dollar global legal industry. Change involves several inter-related elements and stakeholders in the legal ecosystem—the Academy and providers; legal professionals and providers; and providers/legal buyers.” – MARK A. COHEN (Source: https://www.forbes.com/sites/markcohen1/2018/04/26/legal-change-why-drip-not-disruption/#68bf1e191fbf)
5 TECH DISRUPTIONS IN THE LEGAL FIELD
1. Digital documents Digitizing documents and storing them via the cloud gives lawyers access to information in a few simple clicks while enabling remote document access via mobile phone and tablet devices. Using other cloud-based applications enables teams to share screens and edit documents in real time, encouraging collaboration and saving time. 2. Data processing Maximizing the collection and processing of data identifies new areas of business and tailors law firms’ services to specific clients. Data analysis technology makes it possible to quickly recognize patterns and relationships that a human analyst would miss. The legal analytics market was valued at $450 million in 2017 and projected to grow to $1.9 billion by 2022. 3. Chatbots Chatbots provide an ideal opportunity for legal firms to attract customers online. When hosted on a website, they offer Q&A facilities to potential clients, allowing them to make inquiries about services and better understand their specific legal needs. Artificially intelligent chatbots free up human operators and provide potential clients with round the clock customer service. 11
4. Flexible working The growing use of technology in the workplace is changing the way that legal professionals work. A new legal service business model is based around freelance work, offering lawyers greater autonomy over their working hours. Offering clients and legal professionals more choice is the future of a sector with a projected rise in non-traditional service providers over the next few years. 5. Predictive analytics Predictive analytics has a growing role in the legal sector in the identification of patterns in data to predict future outcomes. This is particularly relevant for the way that lawyers work on cases. These applications can help lawyers decide whether or not a client is likely to win their case, which judge would be more favorable in a given case, and if a jury versus a bench trial would prevail or fail. (Source: https://disruptionhub.com/5-technologicaldisruptions-in-the-legal-sector/)
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Cybersecurity “You can’t defend. You can’t prevent. The only thing you can do is detect and respond.” – BRUCE SCHNEIER, SPECIAL ADVISOR TO IBM SECURITY
T O P 4 C Y B E R S E C U R I T Y R I S K S T O L AW F I R M S
1. Phishing/Hacked Email Accounts
2. Ransomware
3. Leaks of Sensitive Data
4. The Risk of Legal Malpractice Allegations Due to Poor Cybersecurity
(Source: https://www.lawtechnologytoday.org/2018/10/four-biggest-cybersecurity-risks-law-firms-are-currently-facing/)
In June 2017, the DLA Piper suffered the “Petya” malware attack. The firm had to shut down its email, phone, and digital operations around the world while dealing with the hack for three consecutive days, including resorting to communicating with people at its law firms by text messages. (Sources: http://fortune.com/2017/06/29/dla-piper-cyber-attack/, https://www.americanbar.org/groups/litigation/committees/commercial-business/articles/2018/spring2018-cybersecurity-and-the-lawyers-standard-of-care/)
The 2018 ABA Legal Technology Survey reports that about 23% of respondents overall reported that their firms had experienced a security breach at some point. A breach broadly includes incidents like a lost/stolen computer or smartphone, hacking, a break-in, or website exploit. This compares with 22% 2017, 14% in 2016, 15% in 2015, 14% in 2014, and 15% in 2013—an increase of 8% in 2017 after being basically steady from 2013 through 2016. In 2018, the reported percentage of firms experiencing a breach generally increased with firm size, ranging from 14% of solos, 24% for firms with 2-9 and 10-49, 42% with 50-99, and about 31% with 100+. (Source: https://www.americanbar.org/groups/law_practice/publications/techreport/ABATECHREPORT2018/2018Cybersecurity/)
The recent cyber attack on Baltimore City’s computer network will cost an estimated $18.2 million according to Baltimore’s budget office. The ransomware attack continues to hobble their computer network and there is no timeline for when full network access will be restored. Failing to following proper cybersecurity protocols will prove very costly for local governments as well as law firms who do not take risks seriously. (Source: https://thedailyrecord.com/2019/05/30/maryland-baltimore-virus-attack-4/)
F O U R T I P S O N P R O T E C T I N G Y O U R L AW F I R M
1) Prepare for when (not if) you will be breached 2) Address all of the security functions: • Identify • Protect • Detect • Respond • Recover 12
3) Study past data breaches and apply lessons from them to minimize future risk 4) Train, train, train! (Source: “Anatomy of a Data Breach: Analyzing Past Breaches to Minimize Risk” - Dave Ries, Jen Woods, ABA 2019 TechShow presentation)
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Women in the Legal Profession WOMEN IN THE LEGAL PROFESSION
38% women 62% men
Women in working as attorneys increased by 2% from 2018. In Corporations, women make up 30% (3.6% increase from 2018) of Fortune 500 General Counsel, and 23.8% (no change from 2018) of Fortune 501-1000.
L AW S C H O O L A D M I N I S T R AT I O N — D E A N S
“It’s long overdue...The talent that has always been there is finally being recognized. It’s no secret that women and people of color have had to fight harder to get the recognition and move into positions of leadership. I am delighted that it is now happening.” - RENÉE MCDONALD HUTCHINS (Source: https://www.law.com/nationallawjournal/2019/01/10/moreminority-women-ascend-to-law-dean-jobs/?fbclid=IwAR2-5ymSbZee hfFNK2t18G1LyXGcF5HgLhqHsbmvUV9H38jV-JMbINqv1MQ)
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35% women 65% men
(Source: https://www.americanbar.org/content/dam/aba/administrative/ women/current_glance_2019.pdf)
Women now occupy the Dean’s office at 35% of law schools, and minority women are more visible than ever in leadership positions. This represents an increase of 30% since 2015. In 2019 so far, Rutgers Law School named Kimberly Mutcherson as its new co-dean and University of the District of Columbia David A. Clark School of Law has named University of Maryland law professor Renée McDonald Hutchins as its Dean. MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Women in the Legal Profession WOMEN IN THE LEGAL PROFESSION: GENDER BREAKDOWN
Female attorneys are younger than their male counterparts on average (42 years vs. 50 years). Among younger attorneys (ages 25 to 34), the pool of women is on par with that of men. Among Older attorneys (35+ ), the number of men outweighs that of women. Female attorneys work full-time, year-round on average more than the average for all working women (82% vs. 63%). They are more likely to work for the government and less likely to be self-employed than their male colleagues.
Lawyers: 1960-2016 N UM BER
MEN
WOM E N
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
1960
1970
1980
1990
2000
2010
2016
Percentage of lawyer who are women 50 40 30 20 10 0
1960
1970
1980
1990
2000
2010
2016
Note: Lawyers’ refers to the Standard Occupation Classification category of Lawyers, Judges and Related Workers. For information about confidentiality protection, sampling error, nonsampling error and definitions in the American Community Survey, visit www.census.gov/programs-survey/acs/technicaldocument/code-lists.html Source: U.S. Census Bureau, 2016 American Community Survey 14
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Women in the Legal Profession WOMEN IN THE LEGAL PROFESSION: GENDER BREAKDOWN
The median earnings between women and men, with a female-to-male earnings ratio for full-time, year-round attorneys is 76%, lower than the 80% average across all occupations. For women early in their career (under age 35), median earnings between female and male lawyers are relatively close at $77,000 and $85,000 annually (a 91 percent ratio). The differences in earnings increase with age so that by mid-career (ages 45 to 54), median earnings for women are $121,000 compared with $156,000 of men (a ratio of 78%).
Lawyers by Age and Earnings: 2016 MEN
WOMEN 10th percentile
Median
90th percentile (All ages) (All ages)
PERCENTAGE OF AGE GROUP 0
20
40
60
EARNINGS FOR FULL-TIME, YEAR-ROUND LAWYE R S 80
$0
$100,000
$200,000
$300,000
$400,000
$500,000
25 to 34*
35 to 44
45 to 54
55 to 64
65+
*The difference between the percentages for men and women is not statistically significant for the age group 25 to 34. Note: Lawyers’ refers to the Standard Occupation Classification category of Lawyers, Judges and Related Workers. For information about confidentiality protection, sampling error, nonsampling error and definitions in the American Community Survey, visit www.census.gov/programs-survey/acs/technicaldocument/code-lists.html (Source: U.S. Census Bureau, 2016 American Community Survey) (Source: https://www.census.gov/library/stories/2018/05/women-lawyers.html)
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MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Women in the Legal Profession G E N D E R D I V E R S I T Y I N C H E S F O R WA R D
“U.S. law firms are on track to achieve gender parity in partner promotions by 2032, and gender parity within the partner ranks at a time far beyond that, a reality some say necessitates drastic change if firms hope to alter the current trajectory. Recent data published by the Diversity and Flexibility Alliance shows that 39 percent of those promoted to partner in the U.S. in 2018 were women. That’s 1 percent higher than the year before.” “In 2018, six of the 134 law firms included in the report did not promote any women to partner in the U.S. And there were 26 law firms that promoted cohorts of attorneys made up of fewer than one-quarter women. While some law firms performed exceptionally well, there were more firms that had partner classes of less than 25 percent women than there were firms that had partner classes of more than 50 percent.” (Source: https://www.law360.com/articles/1119398/firms-crawl-to-genderdiversity-shows-long-road-ahead?nl_pk=228a48ea-fbad-40bd-a1ddab4cc2d9bea5&utm_source=newsletter&utm_medium=email&utm_ campaign=special)
Partner Promotions by Gender
2 0 12
2 0 13
2 0 14
2 0 15
33% 34% 32% 34%
2 0 16
37%
2 0 17
38%
2 0 18
16
39%
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Women in the Legal Profession The Best of 2018 Promotion of women to partner in 2018 outpaced men at 23 of the 134 law firms included in the Diversity and Flexibility Alliance’s report
GIB B ONS
100.0%
ZUC KERMAN SPAEDER
100.0%
S Q UI R E PAT TON B OGGS
9
SHUT TS & B OWEN
4
2
7
J ENNER & B LOCK
2
77.8%
8
T HOMPSON HINE
81.8%
80.0%
1
DENTONS
4
6
3
66.7%
66.7%
1 66.7%
2
M I LE S & STOCKB RIDGE
7
ARENT FOX
4
6 4
3
57.1%
M O RRISON & FOERSTER
4
3
57.1%
F OX ROT HSCHILD
63.6% 60.0%
4
A RNOL D & PORTER
13
B AKER DONEL SON
6
54.5%
10
B OLES SCHIL LER
3
FRAGOMEN 3
9
57.1%
3 60.0%
2
LIT T LER
15
MCDERMOTT
10
MORGAN L EWIS
4 15
2
52.6%
60.0%
2 4
KRAMER L EVIN
56.5%
10 5
COZ EN O’CONNOR
STE PTOE & J OHNSON LLP
WOM E N
100.0% of partners promoted were women
GOLDB ERG KOHN
D E BE VOISE & PLIMPTON
MEN
13
53.6%
13
53.6%
71.4%
1 66.7%
(Source: Diversity and Flexibility Alliance) 17
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
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Women in the Legal Profession The Worst of 2018 At 26 firms in 2018, less than 25 percent of those promoted to partner were women. CADWAL ADER
7
0.0%
WEIL
7
0.0%
6
DAVIS POLK 2
0.0%
M I LL ER & CHEVALIER
2
0.0%
SCHU LTE ROTH
2
0.0%
1
11.1%
8 2
W HITE & CASE 1
6
14.3%
KU TAK ROCK
1
6
14.3%
S ULLI VAN & CROMWELL
1
6
14.3%
2
11
DAVIS W RIGHT
1
5
16.7%
MIL B ANK TW EED
1
5
16.7%
STROOCK
1
5
16.7%
2
GOODWIN
15.4%
10 3
KING & SPALD ING
16.7% 13
DRINKER B IDDLE
1
4
20.0%
L ATHROP & GAGE
1
4
20.0%
ST ERNE KESS LER
1
4
20.0%
TH OMPSON & KNIGHT
1
4
20.0%
3
SHOOK HARDY 2
7
22.2%
PROSKAUER
2
7
22.2%
S IMPSON THACHER
2
7
22.2%
3
18.8%
12
DUANE MOR RIS
NELSON MU L LINS
12.5%
14
FRIED FRANK
AKIN GUMP
WOM E N
0.0%
FI TZ PATRICK CELLA
TROUT MAN SANDERS
MEN
10
20.0%
23.1%
(Source: Diversity and Flexibility Alliance) 18
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
N AT I O N A L L EG A L PR O F E S S I O N U PDAT E S
Diversity in the Legal Profession A N O P E N L E T T E R T O L AW F I R M PA R T N E R S A B O U T L A C K O F D I V E R S I T Y
In January 2019, more than 170 general counsel and corporate legal officers signed an open letter to big law firms lamenting new partner classes that “remain largely male and largely white.” The letter says their companies will prioritize their legal spending on those firms that commit to diversity and inclusion. The letter was signed by chief legal officers in a variety of industries, including those in technology, retail, media, hospitality, and financial services. The companies range from small tech outfits to large corporations, such as Google Fiber, Etsy, Heineken USA, Chobani Global Holdings, Waymo, Lyft, Vox Media, S&P Global Ratings, and Booz Allen Hamilton. “We, as a group, will direct our substantial outside counsel spend to those law firms that manifest results with respect to diversity and inclusion, in addition to providing the highest degree of quality representation. We sincerely hope that you and your firm will be among those that demonstrate this commitment,” reads the letter. Read the letter here. (Source: https://www.law.com/americanlawyer/2019/01/27/170-gcs-pen-open-letter-to-law-firms-improve-on-diversity-or-lose-our-business/)
D E PA R T M E N T O F L A B O R ’ S O F F I C E O F F E D E R A L CONTRACT COMPLIANCE PROGRAMS (OFCCP) I S S U E S WA R N I N G T O C O N T R A C T O R S F O R L A C K OF DIVERSITY
Minority women are 3% of law firm partners. “Law firms need to get their houses in order...There is a big problem at law firms for women and women of color.” — Craig Leen, Director of OFCCP The Office of Federal Contract Compliance Programs (OFFCP) enforces pay, hiring, promotion, and other discrimination protections for workers employed by federal contractors. The OFCCP’s Drirector’s comments come after a waive of sex distcrimination accucations against large national law firms such as Jones Day, Ogletree Deakins, and Proskauer Rose. OFCCP’s office is notifying 3,500 federal contractors that they could be selected at random for OFCCP audits in fiscal year 2019, including firms of Haynes and Boone, Ballard Spahr, Fox Rothschild, and Mayer Brown. Some firms that do business with the government have argued that the OFCCP doesn’t have the jurisdiction to investigate potential discrimination against partners because those lawyers are considered owners or shareholders, rather than employees. The Labor Department plans to issue guidance on that question and in the meantime, the OFCCP is looking at partner promotions as a possible form of discrimination. (Source: https://biglawbusiness.com/law-firms-warned-about-diversity-byfederal-contractor-watchdog)
19
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019
For our members. For the profession. Serving, connecting, and empowering Maryland’s legal professionals. 20
MSBA RESEARCH NOTES: LEGAL PROFESSION TRENDS & HIGHLIGHTS 2019