Legal Question in Employment Law in Florida

Value of an associate

Question:

An attorney hires an associate and agrees to pay him $52,000.00 a year. After 6 months the associate is neither billing nor collecting $1,000.00 a week to cover his salary, not to mention costs involved in having this associate (malpractice insurance, health insurance, dues & licenses, etc.). The associate's theory is that by being there he is reducing problems that the attorney would have to handle himself, therefore, taking off some of the attorney�s workload. The associate believes that should be factored into the equation as substitution for collecting fees regarding ''paying for himself.''

I disagree with the associate's theory and think its ''smoke and mirrors.''

The attorney still needs to collect billable time to pay for him and the costs.

What do you think? If you agree, how would you calculate the associate's value?

I sincerely hope you can help me with this. I appreciate your time.

Sincerely,

--name removed--


Asked on 2/25/03, 1:43 pm

1 Answer from Attorneys

Keith Stern Shavitz Law Group

Re: Value of an associate

If you are paying the associate a salary, his/her billing and/or collecting has absolutely nothing to do with his/her entitlement to a salary. That is why the employee is salaried--and not commission or incentive based. Accordingly, while I understand the problems you've outlined--as a sole practitioner with similar dilemmas--if you cannot afford to pay the associate a true salary, or if the associate isn't generating enough work to justify that salary in your eyes, I suggest that you discuss changing with the associate the way he/she is paid in the future. However, recognize that "your" problems are not the associate's problems and that as a result, the associate--understandably--won't want to change the way he/she is paid. By that, I mean that the fact you have your own business is a choice you've made and the consequences of that choice should not, in my opinion, become the "problems" of the associate who is at the end of the day just an employee. Legally there is nothing that provides an answer to your question, but practically speaking, you have to do what makes financial and HR sense.

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Answered on 2/25/03, 2:34 pm


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