Continuing Alverson Taylor coverage

Emails and comments I've received about the change to hourly compensation (although under the mantle of "salary") at Alverson, Taylor, Mortensen & Sanders suggest the change may not entirely unwelcome by the associates and may not be a violation of U.S. labor law.

One anonymous associate writes:

Everyone in town knows Alverson requires a large number of billable hours (2000). That requirement has always been there and associates that want to stick around work long hours to keep their average billable hours worked at 43-44 hours for the week. All that's changed is we now get the cash in hand for every billable hour worked over 40 hours in a week. It's not the revolution you make it out to be. In fact, I welcome the extra cash in hand for each hour over 40 that I bill for. I'll take home more money this year thanks to the change so I have no complaint.

Sounds like not everyone at Alverson Taylor is bothered by the change. I have received a report, however, that three associates have left the firm due to the new policy.

In regards to allegations that paying associates "hourly" wages based on billable hours does not constitute salary and therefore may violate U.S. labor law, an employment attorney writes:

I don't think there's anything illegal per se about the compensation plan. While compensation paying someone on an hourly basis would not fall under the Dept. of Labor regulatory definition of salary, attorneys or law firms are exempted from the strict definition of salary. As a result, the compensation structure probably doesn't violate labor law even if an associate has earned less than their salaried income at the end of the year.

Well there you go: it's not unlawful. But is it a step in the wrong direction? The New York Times Style section published an article this week on the growing attempts by east coast firms to make their associates more comfortable and happy at work, including the growing movement to bring down the billable hour.

If it's happening out east, the wave of change should hit us here in Vegas in about 5 years.