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Copyright © 2016 NALA 2016 National Compensation & Utilization Survey Report; 1
2016 National Utilization & Compensation Survey Report
Prepared by:
Data Point Consulting LLC
Prepared for:
NALA
Copyright © 2016 NALA 2016 National Compensation & Utilization Survey Report; 2
2016 National Utilization & Compensation
Survey Report Key Findings
Background Since 1986, NALA has conducted a national study to better understand the educational backgrounds, work environments, duties & responsibilities, billing, and compensation levels of paralegals. This study and the market research data gathered are particularly valuable to the paralegal profession. Years of data have been used to compare and contrast various topic areas of interest as noted above from both NALA members and non-members. This report captures and analyzes the data that was collected for 2016, as well as provides trends where appropriate. The US Department of Labor1 reported 279,500 paralegal jobs in 2014, which are projected to grow by 8% (21,200 jobs) from now until 2024. Given the number of respondents2 (n = 1,226), it allows this study to make a few assumptions about the paralegal profession. Although individual experiences will differ, this study provides a generalization regarding paralegals who responded to the survey. Survey Respondents Of the respondents, 95% were female and in their upper 40’s. Almost two-thirds of them were a NALA member. Two-thirds received their CP credential and about a quarter attained their ACP. Over one-third of the respondents were from the Southeast region, including states such as Texas, North Carolina, and Alabama. Of the respondents, roughly half of them work in a city with less than 500,000 people and have
1 US DOL http://www.bls.gov/ooh/Legal/Paralegals-and-
legal-assistants.htm 2 This study is specifically for market research purposes
and not intended to price fix on the open market.
earned a Bachelor’s Degree. About a third of them have been in the workforce for over 25 plus years, as well as have over 25 plus years of legal experience. Employment & Responsibilities Approximately 97% of respondents are employed by a company while the other 3% are self-employed/business owners. Over two-thirds work in the private sector with the majority of companies providing more flexible work arrangements over the years. Typically, these flexible work arrangements consist of accommodating temporary schedule adjustments or having a long-term arrangement for all employees. Almost 80% of respondents indicated that their job titles reside under the formal name, Paralegal. Roughly 30% of paralegals work alongside 2 to 5 attorneys, which has been consistent since 2012 with the majority of paralegals working full-time (30 plus hours). Roughly 20% of paralegals stated that for every one to two attorneys in their office, there is one paralegal working with them. Since 2010, roughly 50% of paralegals don’t have secretarial (admin) assistance available to them. Meanwhile 74% of paralegals are seeing an increase in duties and responsibilities in the area of work that involves independent judgement, level of sophistication, and client involvement. A minimum number of paralegals appear before administrative agencies while 40% of paralegals attend department meetings. Overall, paralegals are supervised and work load is assigned by attorneys or office administrators/managers. Paralegal managers have more than 25 years of legal experience. When looking into several specialty areas in which paralegals work, roughly 30% spend 80-100% of their time in the following areas:
Litigation-civil
Family law/Domestic relations
Personal injury
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Also, the majority of paralegals attend legal education seminars for professional growth reasons, while not many paralegals teach courses in paralegal programs or do any type of freelance work. Compensation & Billing About half of paralegals are primarily paid hourly, while the other half are salaried. On average, paralegals work 41 hours per week where 29 of those hours are billable. Roughly 60% of firms bill paralegal time, yet 57% of paralegals are not expected to produce a set number of billable hours per week. Slightly over half of paralegals sometimes work in excess of their normal working hours and 30% of those always receive overtime compensation. In regards to paralegal hourly billing rates, which has been consistent since 2010, the Far West region continues to report the highest hourly billing rate averaging $136 an hour, which includes states like California, Oregon, and Nevada. The Rocky Mountain region includes, but not limited to, Colorado and Montana, averages the lowest hourly billing rate of $106 since 2010. Also, on average, firms that have more attorneys, have a higher billing rate for paralegals. It is not surprising that the more years of legal experience, the higher hourly billing rate one charges, which has averaged $145 per hour since 2014. Over the years, total compensation3 continues to grow, on average 5%, from 2002 to 2016. In 2016, on average, paralegal’s annual compensation totaled $61,671, which is about 6% higher compared to 2014 at $58,410. Higher compensation comes with more years of legal experience, education, and the number of attorneys in one’s firm. Coinciding with the Far West having the highest hourly billing rate compared to other regions, the average compensation for this
3 Compensation includes salary, overtime, & bonuses
region since 2004 is $63,419 while the lowest compensation residing in the Plains States is at $50,997. Slightly over 40% of paralegal’s salary and hourly billing rate increase once a year while another 40% indicated there is not a set schedule. On average, paralegals earned 2% more money with a Bachelor’s Degree compared to an Associate Degree and 5% more money for those who earned a Master’s Degree compared to a Bachelor’s Degree. Employee Benefits Since 2014, 80% of paralegals indicated that their employer provides and contributes to a retirement and/or pension plan for their employees and about 35% of employers provide a profit sharing plan. In regards to benefits, the top 5 benefits that employers offer their employees include:
1. Paid conference/seminar fees 2. Paid professional dues 3. Parking 4. Health insurance 5. Life insurance
Roughly 25 to 30% of employers offer their employee’s families health, dental, and vision insurance.
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2016 National Utilization & Compensation Survey Report
Report Overview
This study was conducted to better understand the educational backgrounds, work
environments, duties and responsibilities, billing, and compensation levels of paralegals.
This study is particularly valuable to the paralegal profession by providing analysis of
several years of market research data.
Methodology
NALA hired Data Point Consulting LLC as a third party to develop, administer, analyze,
and provide a report of the survey results. The anonymous survey was administered
electronically to both NALA members and non-members through direct and forwarded
emails as well as social media platforms (Facebook, LinkedIn) during September of
2016. Multiple reminders were sent to increase the response rate. This study is
conducted every two years since 1986. A total of 1,226 individuals responded to the
survey in 2016, 1069 in 2014, 1330 in 2012, and 1451 in 2010.
Although there is no standard response rate across research, the higher the response
rate, the better. Typically, market research warrants a response rate of 30% to be
acceptable. Given the number of individuals that responded in 2016 and the
demographic makeup of NALA members, the sample that responded to this survey is
representative of the NALA’s paralegal population. This study is specifically for market
research purposes and not intended to price fix on the open market.
The report is broken out into four sections, including, demographics, employment and
responsibilities, compensation and hours, and benefits.
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Figures
Respondent Demographics
Figure 1: Gender ........................................................................................................................ 8
Figure 2: Membership ................................................................................................................ 8
Figure 3: Generation Breakdown ............................................................................................... 8
Figure 4: Credential Attained ...................................................................................................... 8
Figure 5: Region ........................................................................................................................ 9
Figure 6: Population of City Where Work ................................................................................... 9
Figure 7: Highest Degree Attained ............................................................................................10
Figure 8: Paralegal Education Program ....................................................................................10
Employment & Responsibilities Figure 9: Current Employment Status ......................................................................................12
Figure 10: Firm’s Governing Status ...........................................................................................12
Figure 11: Flexible Work Arrangement by Employer .................................................................12
Figure 12: Flexible Work Arrangement Scenario .......................................................................12
Figure 13: Total Years Work Experience ...................................................................................13
Figure 14: Total Years Legal Experience ..................................................................................13
Figure 15: Job Titles .................................................................................................................13
Figure 16: Attorney Count .........................................................................................................14
Figure 17: Employment Basis ...................................................................................................14
Figure 18: Secretarial Assistance ..............................................................................................14
Figure 19: Duties & Responsibilities ..........................................................................................15
Figure 20: Areas of Increased Duties & Responsibilities ...........................................................15
Figure 21: Various meeting/agency participation .......................................................................15
Figure 22: Overall Supervision ..................................................................................................16
Figure 23: Years Legal Experience by Supervision ...................................................................16
Figure 24: Assignments ............................................................................................................16
Figure 25: Employees Reporting ...............................................................................................16
Figure 26: Tools for Professional Growth ..................................................................................18
Compensation & Billing Rates
Figure 27: Primary Compensation .............................................................................................20
Figure 28: Average Hourly Billing Rates by Region ...................................................................21
Figure 29: Average Hourly Billing Rates by Size of Firm ...........................................................21
Figure 30: Average Hourly Billing Rates by Total Years Legal Experience ................................22
Figure 31: Average Hourly Billing Rates by Type of Paralegal Program ....................................22
Figure 32: Firm Bill Paralegal Time ...........................................................................................23
Figure 33: Billing Hours Expectations ........................................................................................23
Figure 34: Work Excess Hours & Overtime Pay ........................................................................23
Figure 35: Annual Salary Ranges..............................................................................................24
Figure 36: Annual Compensation Ranges .................................................................................24
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Figure 37: Total Compensation .................................................................................................25
Figure 38: Salary .......................................................................................................................25
Figure 39: Bonuses ...................................................................................................................25
Figure 40: Compensation by Years of Legal Experience ...........................................................26
Figure 41: Salary by Years of Legal Experience ........................................................................26
Figure 42: Compensation by Region .........................................................................................27
Figure 43: Salary by Region ......................................................................................................27
Figure 44: Compensation by Attorney Size ...............................................................................28
Figure 45: Salary by Attorney Size ............................................................................................28
Figure 46: Salary by Education .................................................................................................29
Figure 47: Salary/Billable Hourly Rate Increase ........................................................................29
Employee Benefits
Figure 48: Employer Retirement/Pension Plan ..........................................................................31
Figure 49: Employer Profit Sharing Plan ...................................................................................31
Figure 50: Employer Contributions ............................................................................................31
Tables
Respondent Demographics
Table 1: Region & State breakdown ........................................................................................... 9
Employment & Responsibilities
Table 2: Specialty Area breakdown ...........................................................................................17
Compensation & Billing Rates
Table 3: Billing Rates ................................................................................................................20
Table 4: Compensation/Salary by Association ..........................................................................29
Employee Benefits
Table 5: Benefits Employer Provides/Pays for Employees ........................................................32
Table 6: Benefits Employer Provides/Pays for Families ............................................................32
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Respondent Demographics
Results
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Respondent Demographics
Figure 1: Gender Figure 2: Membership
Figure 3: Generation Breakdown
Figure 4: Credential Attained
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Respondent Demographics
Table 1: Region & State breakdown
*Green denotes top 10 states that responded to the survey
Figure 5: Region
Figure 6: Population of City Where Work
Region State Count Frequency
Alaska 5 0%
California 102 9%
Hawaii 2 0%
Nevada 19 2%
Oregon 45 1%
Washington 4 0%
Illinois 15 1%
Indiana 7 1%
Michigan 23 2%
Ohio 1 1%
Wisconsin 7 1%
Connecticut 1 0%
Maine 2 0%
Maryland 8 1%
Massachusetts 1 0%
New Hampshire 1 0%
New Jersey 20 2%
New York 12 1%
Pennsylvania 15 1%
Rhode Island 1 0%
Delaware 2 0%
District of Columbia 7 1%
Vermont 1 10%
Iowa 13 1%
Kansas 17 1%
Minnesota 5 40%
Missouri 16 1%
Nebraska 23 2%
North Dakota 25 2%
South Dakota 20 2%
Colorado 22 2%
Idaho 4 0%
Montana 35 3%
Utah 15 1%
Wyoming 11 1%
Alabama 19 2%
Arkansas 5 4%
Florida 227 19%
Georgia 17 1%
Kentucky 8 1%
Louisiana 5 0%
Mississippi 10 1%
North Carolina 37 3%
South Carolina 28 2%
Tennessee 28 2%
Virginia 48 4%
West Virginia 16 1%
Arizona 62 5%
New Mexico 4 0%
Oklahoma 13 4%
Texas 137 12%
Far West
Great
Lakes
New
England/
Mid East
Plains
States
Rocky
Mountains
Southeast
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Respondent Demographics
Figure 7: Highest Degree Attained
Figure 8: Paralegal Education Program
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Employment & Responsibilities
Results
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Employment & Responsibilities
Figure 9: Current Employment Status Figure 10: Firm’s Governing Status
Figure 11: Flexible Work Arrangement by Employer
Of the respondents who indicated that their employer provides a flexible work arrangement, figure 12
represents their typical work arrangement.
Figure 12: Flexible Work Arrangement Scenario
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Employment & Responsibilities
Figure 13: Total Years Work Experience Figure 14: Total Years Legal Experience
Figure 15: Job Titles
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Employment & Responsibilities
Figure 16: Attorney Count
Figure 17: Employment Basis
Figure 18: Secretarial Assistance
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Employment & Responsibilities
Figure 19: Duties & Responsibilities
Of the respondents who indicated that their duties and responsibilities increased, figure 20 represents
the areas that increased.
Figure 20: Areas of Increased Duties & Responsibilities
Figure 21: Various meeting/agency participation
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Employment & Responsibilities
Figure 22: Overall Supervision
Figure 23: Years Legal Experience by Supervision
Figure 24: Assignments Figure 25: Employees Reporting
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Employment & Responsibilities
Table 2 represents several specialty areas in which paralegals work and the amount of time spent during a typical 5-day work week. For example, < 20% indicates one day or less in a certain specialty area. Table 2: Specialty Area breakdown
*Green denotes top 10 specialty areas in the % of most time spent in the area
Specialty Area < 20% 20% to 39% 40% to 59% 60% to 79% 80% to 100%
Administrative/government/
public including compliance 42% 19% 11% 6% 22%
Admiralty/Maritime 85% 4% 0% 4% 8%
Aviation 87% 3% 2% 3% 5%
Banking/Finance 59% 19% 7% 5% 11%
Bankruptcy 70% 14% 6% 2% 8%
Collections 68% 13% 9% 4% 8%
Civil rights 62% 17% 11% 5% 5%
Commercial 48% 22% 14% 7% 9%
Construction 57% 21% 7% 5% 10%
Corporate 48% 19% 13% 8% 13%
Contract 50% 18% 12% 7% 14%
Criminal 53% 14% 8% 2% 23%
Elder law 63% 22% 5% 4% 7%
Employee benefits 71% 16% 8% 2% 4%
Employment/Labor law 57% 18% 10% 6% 10%
Entertainment 83% 6% 6% 4% 2%
Environmental law 69% 16% 5% 3% 8%
Energy/Utility 68% 10% 6% 5% 10%
Family law/Domestic relations 40% 11% 12% 7% 31%
Healthcare 53% 11% 11% 9% 16%
Immigration 78% 9% 3% 3% 9%
Insurance 39% 14% 11% 10% 25%
Intellectual property 49% 13% 13% 4% 22%
Legislation/Lobbying 75% 13% 5% 3% 4%
Litigation-civil 27% 12% 13% 11% 36%
Mass tort litigation 62% 11% 9% 5% 13%
Medical malpractice 52% 17% 9% 7% 16%
Mergers/Acquisitions 67% 18% 7% 6% 1%
Multi-state litigation 63% 10% 11% 4% 12%
Native American/Tribal 78% 17% 3% 2% 0%
Non-profit 70% 14% 5% 2% 10%
Office management 57% 21% 10% 6% 7%
Oil & Gas 71% 14% 6% 3% 7%
Personal injury 35% 16% 8% 10% 32%
Probate 48% 19% 11% 9% 14%
Product liability 54% 15% 13% 4% 14%
Real Estate 48% 19% 11% 7% 16%
Securities/Antitrust 79% 5% 7% 6% 4%
Social Security 71% 9% 3% 5% 12%
Tax 76% 11% 6% 2% 6%
Telecommunications 84% 7% 0% 6% 4%
Trusts & Estates 49% 16% 13% 7% 14%
Veterans law 86% 4% 2% 6% 2%
Work compensation 63% 16% 9% 3% 9%
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Employment & Responsibilities
Figure 26: Tools for Professional Growth
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Compensation & Billing Rates
Results
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Compensation & Billing Rates
Figure 27: Primary Compensation
Table 3: Billing Rates
*% of respondents that fall within billing rate range; Green denotes top 10 billing rate ranges in each year
Billing Rate Ranges 2010 2012 2014 2016
Less than $30 2% 2% 2% 2%
$31 to 35 1% 1% 0% 1%
$36 to 40 0% 0% 1% 0%
$40 to 45 1% 0% 0% 0%
$46 to 50 2% 1% 0% 1%
$51 to 55 1% 1% 0% 0%
$56 to 60 1% 1% 1% 0%
$61 to 65 4% 1% 1% 1%
$66 to 70 2% 2% 2% 1%
$71 to 75 9% 9% 6% 5%
$76 to 80 2% 3% 3% 3%
$81 to 85 4% 4% 3% 3%
$86 to 90 6% 7% 4% 5%
$91 to 95 5% 4% 4% 4%
$96 to 100 10% 10% 11% 11%
$101 to 105 1% 1% 0% 1%
$106 to 110 4% 3% 5% 3%
$111 to 115 1% 1% 2% 1%
$116 to 120 1% 1% 2% 2%
$121 to 125 9% 11% 9% 12%
$126 to 130 2% 2% 2% 2%
$131 to 135 3% 3% 3% 4%
$136 to 140 3% 3% 2% 2%
$141 to 145 0% 0% 2% 2%
$146 to 150 2% 2% 8% 8%
$151 to 155 1% 7% 1% 1%
$156 to 160 1% 1% 1% 2%
$161 to 165 1% 1% 2% 2%
$166 to 170 1% 1% 0% 1%
$171 to 175 2% 1% 4% 3%
$176 to 180 1% 4% 2% 1%
$181 to 185 1% 12% 2% 1%
$186 to 190 1% 7% 1% 0%
$191 to 195 1% 10% 1% 3%
$196 to 200 1% 10% 2% 2%
$201 to 205 0% 1% 0% 0%
$206 to 210 0% 4% 1% 1%
$211 to 215 1% 3% 1% 0%
More than $215 - - - 8%
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Compensation & Billing Rates
Figure 28: Average Hourly Billing Rates by Region
Figure 29: Average Hourly Billing Rates by Size of Firm
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Compensation & Billing Rates
2016 Average hours per week (billable & non-billable): 41 hours/week 2016 Average billable hours per week: 29 hours/week
Figure 30: Average Hourly Billing Rates by Total Years Legal Experience
Figure 31: Average Hourly Billing Rates by Type of Paralegal Program
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Compensation & Billing Rates
Figure 32: Firm Bill Paralegal Time Figure 33: Billing Hours Expectations
Figure 34: Work Excess Hours & Overtime Pay
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Compensation & Billing Rates
Figure 35: Annual Salary Ranges
Figure 36: Annual Compensation Ranges
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Compensation & Billing Rates
Figure 37: Total Compensation
Figure 38: Salary
Figure 39: Bonuses
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Compensation & Billing Rates
Figure 40: Compensation by Years of Legal Experience
Figure 41: Salary by Years of Legal Experience
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Compensation & Billing Rates
Figure 42: Compensation by Region
Figure 43: Salary by Region
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Compensation & Billing Rates
Figure 44: Compensation by Attorney Size
Figure 45: Salary by Attorney Size
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Compensation & Billing Rates
Figure 46: Salary by Education
Table 4: Compensation/Salary by Association Average Salary Average Compensation
2014 2016 2014 2016 NALA Member $ 55,360 $ 58,110 $ 58,923 $ 62,160
Non Member $ 54,334 $ 56,572 $ 57,090 $ 60,456
CP Certification $ 56,516 $ 59,660 $ 59,794 $ 64,156
Non CLA $ 51,805 $ 55,187 $ 53,090 $ 56,308
ACP Certification $ 66,051 $ 73,321 $ 62,802 $ 67,571
Non Advanced Certified $ 54,273 $ 57,340 $ 56,077 $ 59,853 *Average compensation includes salary, bonuses, & overtime
Figure 47: Salary/Billable Hourly Rate Increase
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Employee Benefits
Results
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Employee Benefits
Figure 48: Employer Retirement/Pension Plan
Figure 49: Employer Profit Sharing Plan
Figure 50: Employer Contributions
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Employee Benefits
Table 5 represents whether or not an employer provides or pays employees for various benefits.
Table 5: Benefits Employer Provides/Pays for Employees
*Green denotes top 5 benefits employer pays/provides; Red denotes top 5 benefits employer doesn’t pay/provide
Table 6 represents whether or not an employer provides or pays benefits for their employee’s families.
Table 6: Benefits Employer Provides/Pays for Families
Benefits Offered to Employee Yes No Partial Not Offered
CLE/Conference/Seminar fees 73% 9% 9% 9%
Professional dues 70% 13% 4% 13%
Parking 59% 14% 6% 20%
Health insurance 58% 5% 29% 8%
Life insurance 58% 13% 14% 15%
Mileage 57% 20% 4% 20%
Disability insurance 49% 20% 14% 17%
Dental insurance 45% 19% 22% 14%
Maternity benefits
(excluding FMLA) 42% 23% 8% 27%
Vision insurance 38% 23% 21% 18%
Tuition reimbursement 35% 26% 11% 29%
Free representation 26% 23% 12% 40%
Cell phone reimbursement 17% 38% 6% 39%
Health club membership 14% 38% 9% 40%
Leased car 4% 46% 1% 49%
Childcare 3% 45% 2% 51%
Benefits Offered to Families Yes No Partial Not Offered
Health insurance 31% 32% 25% 12%
Life insurance 19% 48% 12% 21%
Dental insurance 27% 37% 20% 16%
Vision insurance 25% 38% 18% 18%
Free representation 12% 42% 9% 37%