The OSBA Releases Report on the Economics of Law Practice in Ohio

The Ohio State Bar Association (OSBA) Solo, Small Firm and General Practice Section recently posted its publication, "The Economics of Law Practice in Ohio, a Desktop Reference for 2007." The report is based on an on-line survey conducted by the OSBA's Solo, Small Firms and General Practice section during the spring of 2007. The survey collects data about the current demographics of attorneys practicing in Ohio, attorney income by the type of practice, gender, and field of law, full- or part-time status, firm size, and years in the practice. The study also evaluates average hourly billing rates and average hourly billing per week.

The purpose of the study is to provide law practice management information, including overhead associated with maintaining an office, billing rates, and support staff pay rates. In addition, the study provides information regarding trends during the last several years regarding income, hourly billing rates, and time expended in the practice of law.

According to the report, more than 70 percent of Ohio attorneys are in private practice. Of the remainder, 15 percent work in the public sector and 10 percent are in-house counsel. The majority of Ohio attorneys, 61 percent, are men working full time. Only about 29 percent of attorneys in the state are women working full time.

The report highlights some key changes from 2000 to 2006 in attorney income. Specifically, while the group of all attorneys surveyed showed an increase of 2.2 percent from 2000 to 2003 and an increase of 2.1 percent from 2003 to 2006, the annual growth in income for all attorneys surveyed was lower than the annual inflation rate. Subsets of attorneys, such as private practitioners, did show an increase in income greater than the annual inflation rate for 2000 to 2003. The same level of increase was not realized for 2003 to 2006.

In addition, the report indicates that full-time Ohio attorneys are working fewer billable hours than they did previously, dropping from 40 billable hours in a workweek in 2004 to 35 billable hours in a workweek in 2007. While billable hours among full-time attorneys decreased during that time period, billing rates increased. In fact, the trend is to increase billing rates more frequently now than in the past. From 2001 to 2004, billing rates increased 5.6 percent. A more moderate increase of 1.9 percent was seen during the 2004-2007 period. Approximately 36 percent of fees billed by Ohio attorneys are uncollectible.

Source:

"The Economics of Law Practice in Ohio, a Desktop Reference for 2007," Ohio State Bar Association (OSBA) Solo, Small Firm and General Practice Section.