RTO and NYC Junior Lawyers - How Much Does Rent Suck Out of Those Nosebleed Salaries

 The JD Class of 2023 who have landed associate positions with large law firms in New York City have plenty to worry about. 

Currently that includes if the start date will be delayed. And, as happened during the global downturn in 2008 – 2009, if the offer will be snatched back.  

But a more standard concern is what they will have to pony up for rent in NYC. Commuting from wherever is not really an option. 

Big Law firms with offices in NYC tend to facilitate their lawyers being able to come in immediately for a client emergency. That's part of the reason for the high salaries: So that they can afford NYC rent. For example, suppose a client's hotel catches fire during the night. Partners contact junior lawyers to join them in managing the initial legalities for that in real time. 

With RTO creeping back, the odds are that lawyers will also have to be back in-person more. Some speculate that, like Ropes & Gray, many law firms will put teeth in RTO. Ropes & Gray has tied attendance compliance to bonuses. Therefore, living more affordably in rural Pennsylvania is less and less an option for junior lawyers. 

In addition, more junior lawyers who began Big Law during the WFH days of COVID are recognizing there are gaps in their professional development. In-person mentoring, both formal and casual as through sticking your head in the partner's office, is being requested.

Way back in WFH time in The Wall Street Journal interview Paul Weiss chair Brad Karp described how, as a new lawyer, he gained a knowledge/skill edge sitting next to partners. They would manage client calls, then pause to explain to Karp the strategy.

By his second year at Paul Weiss Karp was being assigned “real work” in the high-profile Pennzoil litigation. That was and still is rare for such a junior lawyer. Along the way his own signature has become The Generous Mentor.

Obviously, many signs point to Off To The Office We Go. So, it's no surprise that a post on Reddit Big Law asks what junior lawyers are paying for rent in NYC. Here is the thread.

Responses are primarily in the middle or high $3,000s a month. A one-bedroom lux in a high rise goes for $4,800. A studio - described as a "shoebox" - goes for $2,500 a month (peanuts). 

Of course, that eats a major chunk out of the juniors’ base compensation. Not so much will be pre-paid on student debt.

But downright catastrophe can hit if there is a layoff or rescinded offer. NYC landlords don’t fool around. If you are locked into a $3,800 monthly lease and your severance or stipend has run out you likely will be in financial distress.

In addition, there is the tough job of an apartment search.

Here is a cute anecdote associated with that. This new generation of JDs is too young to remember when Harvard Law School graduate Elie Mystal struggled to rent in Manhattan when taking an entry-level job with Debevoise & Plimpton. That was more than a decade ago.

As Mystal told the story on Abovethelaw, property owners’ eyes popped when they spotted his credit rating. He had fallen behind on $150k student loan repayments – which back then was, you bet, a huge amount of debt.

But, be inspired. Mystal did get a rental. Incidentally, this may also be inspiring to some who aren't a fit for Big Law: He established a career path outside of practicing law. That includes being a best-selling author (“Allow Me to Retort”).

Lawyers tend to be risk-averse. However, as I have learned from those I coach, most don’t approach taking on NYC rent as a risk. Rather it’s an investment. Yes, keep thinking that way. It’s also a must piece of branding. Of course, I nested on the UES for as long as I had to for my own career path.

Intuitive career coaching, with the option to use the Tarot, about your present and your next. Step back from that committee in your head and open to possibility.  Sliding Scale Fees. Please make an appointment for a complimentary consultation at janegenova374@gmail.com.