It hasn't escaped the notice of younger members of the bar that there is a significant lag in starting salaries offered by big Minnesota law firms as compared to their counterparts in larger markets on the East and West Coasts. (See "Big firms in Minn. are surrendering in the salary wars" in Minnesota Lawyer, password required.)
Many might think it's a bunch of whining given that fledgling lawyers can still fetch $120K/year at the largest Twin Cities-based firms. (After hitting the $120K point last year, there has been little upward movement in Twin Cities big firm salaries this year, despite the fact that bigger market firms are up to $160k and, in at least one case, $180K.) The $40K to $60K more new lawyers can make in a bigger market is no doubt a big deal to them. Heck, that's the price of a pretty nice car for every year they work at that other firm. Plus, their salary as second and third-year associates will increase at an exponentially greater rate. By the time they are partner in a big New York City firm, lawyers who opted for the bigger market will be clearing seven figures.
Of course there are tradeoffs. The big New York is more likely to be a meat grinder requiring lawyers to bill every passing breath to make their billable hour requirements. And there are those long commute times. Goodbye PTA meetings or coaching that little league team. Of course, even in Minnesota, the requirements of working at a big firm are no cake walk. There is just a bit more breathing room.
So does it matter that big firms here pay less? I think that it does to a degree. Loan-strapped law students would find the temptation of that extra cash from the large market difficult to pass up. Minnesota was never going to get top talent to come here specifically for the money, but if the differential gets large enough, homegrown top talent that would rather stay here may feel compelled to leave. With four law schools here pumping out grads, there will undoubtedly be plenty of smart folks happy to fill those big firm spots eschewed by those opting out of Minnesota. However, there is a certain stature to being a place that retains some of its very top prospects. We don't want to become the Minnesota Twins of the legal world.
In short, while I don't think we have to offer the same salaries as New York City and L.A. firms here, I think we have to be careful to remain within a competitive range nationally. Fortunately, at present, firms in bigger markets appear poised to take a time out in their salary wars, keeping Minnesota from losing any ground as it takes its own breather.
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[Source: Minnesota Lawyer Blog]
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