Golden Handcuffs

<p>Can anyone explain to me how "Golden Handcuffs" work. I understand it's basically a law firm paying for your LS education, but Im wondering what are some specifics of the deal? Do they pay you a decreased rate after you graduate, or market value? Guaranteed a summer job? In addition, how would one go about getting "golden handcuffs". Thanks</p>

<p>"Golden handcuffs" usually refers to lawyers who are stuck working in jobs with high stress and long hours because they have to pay back their student loans.</p>

<p>My understanding is essentially the same as im blue's -- a lawyer who is in a high paying, usually large firm, position who would really rather be doing something else but, because of debt (school, expensive home or condo, expensive car) and having developed a high spending life-style, just continues to stick it out at the same job. As to a law firm paying for your law school education, that is something you must have heard about along with other urban myths because it really does not happen.</p>

<p>"As to a law firm paying for your law school education, that is something you must have heard about along with other urban myths because it really does not happen.""</p>

<p>Negative on that. My professor who has a JD and an MBA said that there are law firms out there that do pay for your LS education, but with some strings attached (i.e. you must work with them after for x period of time... they will only pay if you get A's and B's etc). </p>

<p>"My understanding is essentially the same as im blue's -- a lawyer who is in a high paying, usually large firm, position who would really rather be doing something else but, because of debt (school, expensive home or condo, expensive car) and having developed a high spending life-style, just continues to stick it out at the same job."</p>

<p>This may be true. My professor used the term in the in the same paragraph with the aforementioned idea. Maybe I'm wrong. </p>

<p>Can anyone help to clarify?</p>

<p>I'm with Im_Blue & Drusba. "Golden handcuffs" are not specific to law school but can be found in any high-stress, high-salaried profession. It's really hard to cut back your lifestyle - there are actually a fair amount of psychology studies about that. Most people continue in their jobs to afford what they've gotten used to. If you leave a high-paying job for a more satisfying one, your mortgage doesn't decrease, your Italian suits cost the same, your car payments don't decrease, and your property taxes are the same. So unless you sell the house, drive used cars, and give up the spending habits, the job won't pay the bills. Hence, golden handcuffs.</p>

<p>I have been in practice nearly 20 years and have never heard of a firm paying off studet loan debt. No saying it could not happen, just never heard of it. Moreover, since not all "hires" work out, and certainly not all "hires" go on to make partner, it would seem to be a risky business to pay off a 1st year's significant debt not knowing whether or not you will rerally want that person around for a specified period of time.</p>

<p>No one wants a malcontent -- ask the SF 49'ers and Phila. Eagles</p>

<p>"I have been in practice nearly 20 years and have never heard of a firm paying off studet loan debt"</p>

<p>Accd to my professor they dont pay off the debt. While you attend they pay for the schooling as long as you fulfill the requirements they lay out. </p>

<p>Ive heard of this from someone else besides my professor back when i was in HS. has anyone ever heard of such a practice?</p>

<p>
[quote]
Negative on that. My professor who has a JD and an MBA said that there are law firms out there that do pay for your LS education, but with some strings attached (i.e. you must work with them after for x period of time... they will only pay if you get A's and B's etc).

[/quote]
</p>

<p>This does not happen. Ever.</p>

<p>I've been practicing law for 20 years as well, and have never heard of a law firm paying someone's law school tuition. I've heard of corporations that subsidize master's degree tuition, but not law school tuition.</p>

<p>In most large law firms, it looks like $125k (base) is their favorite number. Doe some firms pay more or less than that?</p>

<p>I have actually heard of some law firms offering to pay for continuing education and training for their employees as part of their benefits package. Keep in mind that not everybody who works at a law firm is a lawyer, or even has a law-related profession. For example, I know a number of guys who work at law firms as simple IT administrators, basically maintaining the firm's computer systems, and they use the firm's training perks to take night classes in Microsoft Windows administration and computer network routing and so forth. Furthermore, I am not aware of any golden handcuffs being applied - the firm isn't going to say that since we paid for your class in advanced website development, now you are obligated to work in the IT department for X years. The firm just treats that as part of its standard training and benefits package for its employees. So if one of these guys wanted to take law classes in night school as part of a part-time law degree program, I have a feeling that the law firm would pay for that too, at least partially (depending on the cost), and not apply any handcuffs. So in that sense, you could say that the firm is paying for somebody's legal education. </p>

<p>However, if you're talking about a situation where a firm will 'sponsor' somebody to attend a full-time law school with the expectation that they will return to the firm afterwards, I will say that I have never heard of this, although I suppose it is possible. I have heard of people getting sponsored for their full-time MS, or their full-time MBA. For example, I know a number of people who are getting their full-time MBA's at HBS and MITSloan who are fully sponsored by Boeing, meaning that not only is Boeing paying all tuition, but is also paying all living costs AND, best of all, paying them their regular salaries. Hence, they're actually making very good money while getting their elite MBA's. I have even heard of companies like Merck who partially sponsor people to get their PhD's. However, I have never heard of a law firm sponsoring somebody to get their full-time law degrees.</p>

<p>I haven't heard of law firms sponsoring law degrees either. Intuitively, it doesn't make sense to me, because no one can predict what kind of grades you'll get, which are the single most important factor in law firm hiring. I can't see why a company would invest $150,000 in someone when they could be at the bottom of the class and fail the bar exam just as easily as be in the top of the class. Besides which, how can the average Joe get into the position where the law firm would be so confident of his abilities to risk $150k on him?</p>

<p>A slight disagreement...</p>

<p>A few years ago, I did hear of law firms offering tuition - in a very, very specific situation. Basically, if science Ph.Ds would work for the firm as technical consultants, they would pay their night tuition - with the expectation that they would work as attorneys there afterwards. My former manager had considered the offer - but then again, she had been working as a scientist for about 20 years at that point. Rare situation.</p>

<p>Actually, now come to think of it, I have heard of big pharmaceutical companies like Pfizer offering to sponsor some of their scientists and engineers (usually guys holding PhD's) for full-time law school if they would come back and serve as liaisons between the company's R/D division and the legal division. Intellectual property and patents are very big deals to pharmaceutical companies - their entire business model is based on IP protections. Note, this offer wasn't provided to just anybody off the street, but only to scientists and engineers who had been in the company for a number of years and had thus established a strong track record within the company. </p>

<p>However, these are actual companies who are offering sponsorship. I would say that it's rare for actual law firms to offer sponsorship.</p>

<p>As to ihateCA's question, that $125K is no longer the magic number for large firms. You have missed what has been happening in the last six weeks. Several of the large New York firms jumped that number to $135K, then some to $140K and now some even to $145K and the ripple effect is going on in most major cities right now so that the number will be getting closer to that $135-140K in a number of places very soon. For the large firms the actual number will vary, particularly depending on location but also among large firms in a city. NY, Boston, Chicago, LA, San Fran, and DC tend to be close to each other and other large cities a bit less.</p>

<p>I would point out, however, that these salary figures that are being bandied about are salaries for the major law firms at the big cities. These kinds of positions are generally available only to the top students at the top law schools. The majority of law students have little chance of landing these kinds of jobs. Plenty of law students end up working in small law firms, or for companies as inhouse counsel, or for the government in some capacity, or for nonprofits, etc., where the pay is obviously lower. </p>

<p>According to the BLS, in 2004, the median earnings of all lawyers (not starting salaries, but all salaries) was about 95k. The median salary for first-year lawyers was 55k. </p>

<p><a href="http://www.bls.gov/oco/ocos053.htm#earnings%5B/url%5D"&gt;http://www.bls.gov/oco/ocos053.htm#earnings&lt;/a&gt;&lt;/p>

<p>"I would point out, however, that these salary figures that are being bandied about are salaries for the major law firms at the big cities. These kinds of positions are generally available only to the top students at the top law schools"</p>

<p>I was wondering if you could estimate how many spots are available and how many firms offer such starting salaries</p>

<p>Your chances of landing such top paying jobs almost completely depend on your law school and class rank. At the top 15 or so schools, the majority of the students can land these $125k jobs, while at a top 50 school, you'd need to be in the top 10%-20%. It's even tougher for worse schools.</p>

<p>Intel, as I understand it, has a relatively generous education benefit for employees, some of whom may use it toward law school tuition. They have a more specific and more generous program for some of their hi-tech employees who train to become IP lawyers for Intel.</p>

<p>The US Military has a few programs for Law Schools, which are similar in character to their undergrad programs and the scenario listed here. Although, I don't think you have to drill during the year ala ROTC. I remember the Marine Corps' being the best, although I didn't research that deeply.</p>