Billing rates for top-tier timekeepers in high-value practices are exceptionally high, with some partners charging over $2,300 per hour and high-end associates nearing $2,000 per hour in 2024.
The LexisNexis CounselLink 2025 Trends Report reveals an increasingly pronounced divide between large law firms and their smaller counterparts, characterized by rising disparities in billing rates and market influence. Firms with more than 750 attorneys have strengthened their hold on high-value legal services, now commanding nearly half of all corporate legal spending. For the first time, median partner billing rates at these large firms exceeded $1,000 per hour, with some elite partners charging upwards of $2,300 per hour. Meanwhile, smaller and midsize firms have experienced comparatively modest increases, underscoring their limited pricing leverage and deepening the economic chasm across firm tiers.
Fee structures also vary considerably by practice area. Complex, high-demand fields such as mergers and acquisitions, regulatory compliance, and intellectual property litigation saw substantial increases, driven by specialized expertise and intense client demand. In contrast, insurance litigation remains consistently lower-priced due to aggressive negotiations and high competition among service providers.
The report highlights a gradual but meaningful growth in alternative fee arrangements (AFAs), accounting for roughly 7% of total legal billings. AFAs have gained particular traction in predictable, high-volume areas like intellectual property and employment law, signaling an incremental shift toward client-driven pricing approaches.
Significant geographical disparities emerged as well, with attorneys in metropolitan hubs such as Washington, D.C., Boston, and Chicago recording notably sharper rate increases compared to other regions. Collectively, these findings indicate a continued trend of market consolidation, as larger firms further solidify their dominance in the industry's highest-stakes segments.
Published April 22, 2025.
