Hourly rates are the engine that drives attorney fees. Hour rates are the most important single factor in determining attorney fee awards. There are several factors that determine hourly rates. NALFA has identified four hourly rate factors that have significant impact on prevailing market hourly rates. At NALFA, these four factors are known as the primary variables and should be a part of any hourly rate survey. We've ranked these hourly rates factors in order of importance:
Geography / Jurisdiction: This is the most important of the factor in determining hourly rates. Where an attorney practices matters the most. Simply put, all things being equal, hourly rates in Manhattan are not the same as hourly rates in Oklahoma City.
Years in Practice / Position Title: This is the second most important factor in determining hourly rates. The more senior or experienced the attorney, the higher the hourly rate. Simply put, all things being equal, hourly rates for partners are not the same as hourly rates for associates.
Practice Area / Complexity of Matter: Often overlooked and subtle, the nature of the underlying matters in determining hourly rates. Hourly rates for more routine matters will not be the same as more complex areas of law. Simply put, all things being equal, attorneys who practice in insurance defense or workers comp will charge different rates than attorneys who practice in antitrust litigation or white collar crimes.
Law Firm Size: This is the least important of the factors, but still somewhat relevant. Simply put, all things being equal, solo practitioners may have different rates than attorneys at very large law firms.