Big Law is weird. One day you’re hearing about "hiring freezes" and the next, some firm in Houston is basically lighting a match to the standard pay scale just to see what happens. If you’ve been following the law firm salaries news lately, you know the vibe is shifting. We aren't just talking about the "Cravath Scale" anymore; we're talking about a fragmented world where $225,000 is the floor, but the ceiling has basically vanished.
Most people think Big Law pay is a monolithic block. It’s not. Honestly, while the big names like Milbank and Cravath, Swaine & Moore set the pace, the real story in 2026 is how "boutique" firms and middle-market players are scrambling to keep up—or choosing to opt out of the rat race entirely.
The 2026 State of the "Market" Salary
The magic number for a fresh-faced first-year associate at a top-tier firm currently sits at $225,000. That’s the base. No bonuses, no perks, just the starting line. But if you look at the newest data from NALP (National Association for Law Placement), that "market" rate is actually a bit of a mirage.
Only the largest firms—those with 700+ lawyers—are consistently hitting that $225k mark. Once you drop down to firms with 100 to 250 attorneys, the median slides closer to **$170,000 to $190,000**.
The Current Lockstep Scale (Standard Big Law)
For those inside the "Cravath" bubble, the progression is predictable, almost like a military pay grade. Here is how the base pay looks as of early 2026:
- First Year: $225,000
- Second Year: $235,000
- Third Year: $260,000
- Fourth Year: $310,000
- Fifth Year: $365,000
- Sixth Year: $390,000
- Seventh Year: $420,000
- Eighth Year: $435,000
It looks great on paper. But there’s a catch.
Why the $225,000 Number is Deceptive
You’ve probably seen the headlines about Houston-based boutique AZA hiking its starting pay to $235,000 recently. They basically looked at the New York giants and said, "We'll see your bet and raise you ten grand."
This isn't just a Texas thing. It’s a signal. Elite litigation boutiques are increasingly paying over the market scale because they need people who can actually try cases, not just "review documents" (AI does that now anyway).
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But for most associates, the "real" money is in the bonuses. In late 2025, we saw a massive "bonus blitz" where firms like Paul Weiss, Dechert, and Baker Botts didn't just match the standard year-end bonus (which tops out at $115,000 for seniors), they added "special" bonuses on top.
The 2026 Bonus Breakdown
If you're at a firm that matched the Cravath/Milbank scale, your total year-end haul probably looked like this:
- Class of 2024: $20,000 (Year-end) + $6,000 (Special)
- Class of 2021: $75,000 (Year-end) + $20,000 (Special)
- Class of 2018+: $115,000 (Year-end) + $25,000 (Special)
Some firms, like Morrison & Foerster, have even introduced "over-market" merit bonuses. High billers there can see total bonuses hitting $218,200. That is life-changing money, but you're likely billing 2,400 hours to get it. That's basically living in your office.
The Rise of the Nonequity Tier
Here is the law firm salaries news nobody really wants to talk about: the "Partnership" is changing.
Just this month, Sullivan & Cromwell—one of the last holdouts of the traditional model—announced a new "income partner" or nonequity tier. They join the ranks of WilmerHale, Cleary Gottlieb, and Paul Weiss.
What does this mean for your paycheck? Basically, the "Senior Associate" phase is getting longer. Instead of a binary "You're a partner or you're fired" moment in year eight, you now have this middle ground.
- Income Partner Salary: Usually ranges from $300,000 to $600,000.
- The Perk: You get the title.
- The Reality: You don't own a piece of the firm, and you’re still technically an employee.
Sullivan & Cromwell also introduced a $50,000 referral bonus for associates who bring in new talent. If you refer a friend and they stay a year, you get a check. It’s a bit "tech startup-y," but it shows how desperate these firms are for reliable mid-level talent.
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Geography vs. The Remote Work Hangover
Location used to be everything. If you were in NYC, you made the big bucks. If you were in Charlotte, you took a 20% haircut.
In 2026, that gap is closing but hasn't disappeared. "Secondary markets" like Nashville, Denver, and Salt Lake City are seeing first-year salaries in the $155,000 to $185,000 range. It’s lower than Manhattan, but when you factor in the cost of a two-bedroom apartment, the "lower" salary often wins.
Wait. There's another thing.
Firms are getting "disciplined" about remote work. Some have started quietly tying bonus eligibility to "office attendance." If you’re not in your seat three or four days a week, that "Special Bonus" might suddenly vanish.
What Most People Get Wrong About Big Law Pay
Most people think associates are getting rich. Some are. But many are "income poor" because of the places they have to live.
A fifth-year associate making $365,000 in San Francisco after taxes, student loans (which often exceed $200k), and a $5,000-a-month rent check isn't exactly "wealthy" in the way people imagine.
There's also the "In-House" lure. A 2025 BarkerGilmore report showed that while law firm pay is skyrocketing, in-house counsel salaries only grew about 2.8%. If you jump ship to go work for a tech company or a bank, you're likely taking a pay cut of 30% to 50% in exchange for your weekends back.
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Actionable Steps for Navigating 2026 Salaries
If you're an associate or a law student looking at these numbers, don't just look at the $225,000 base. That’s the shiny object. Look at the structure.
1. Check the "Special Bonus" History.
Does the firm pay special bonuses every year, or was 2025 a fluke? Firms like Milbank have made it a habit. Others only do it when they’re afraid of losing people.
2. Audit the "Billable" Definition.
Does the firm count pro bono, recruiting, and "firm-building" toward your 2,000-hour bonus threshold? Sullivan & Cromwell’s new "enhanced" bonus only goes to the top 10% of billers. If you’re at 1,900 hours, you might get $0 extra.
3. Watch the Nonequity Move.
If your firm just added a nonequity tier, ask the senior associates how it changed the "path." Is it a stepping stone or a parking lot?
4. Leverage Referral Bonuses.
If your firm is offering $50,000 for a referral like S&C, use your network. That’s effectively a 22% raise for a first-year associate just for helping a friend get a job.
The law firm salaries news cycle isn't slowing down. With revenue up 12% across the top 50 firms, the money is there. The only question is how many hours of your life they'll require in exchange for it.
Check your firm’s latest internal memo against the "Cravath/Milbank" benchmark. If you aren't at $225,000 as a first-year in a major market, you’re officially "below market," and it might be time to look at those boutique firms that are currently out-hustling the giants.