Law firms pay new hires to work for public good

WASHINGTON (AP) — If things had gone according to plan, Lindsay Murphy would be a big-city tax lawyer by now. Instead, the recent law school graduate found herself doing legal aid, listening to complaints about raw sewage bubbling up into the bathtubs of a Mississippi Delta housing project.

Murphy is among hundreds of newly minted lawyers who have been forced by the recession to take a detour on their way to the nation’s top firms, spending up to a year helping out nonprofits for as little as a third of the salary they’d expected.

From San Francisco to New York, high-powered firms are postponing the start dates of new hires they recruited before the economic meltdown. Many are paying the “deferred associates” stipends to spend a year doing public interest work until the business slowdown ends.

For cash-strapped nonprofits and government law offices, the free help is an unexpected silver lining. And the young lawyers and the firms that pay them say they are benefiting from valuable training and hands-on experience.

Murphy, 25, started her public interest fellowship at the University of Mississippi’s Civil Legal Clinic in August. She has helped poor clients with housing and tax problems and traveled this month to the poverty-ridden Delta with other attorneys and law students to investigate one low-income neighborhood’s sewer problems.

“This is what this profession is for — it’s for helping people,” said Murphy, who focused on corporate tax early in law school at Ole Miss. “I had lost sight of that.”

Nobody has an exact count of how many law firm associates have been deployed to public interest law offices, but experts say it’s likely in the high hundreds.

The list of firms paying such stipends include some of the biggest legal names.

Murphy, for example, is one of 59 public interest fellows from Morgan, Lewis & Bockius, whose Dallas office she plans to join next year. Ropes & Gray is paying 51 incoming associates to do public-interest work. Orrick, Herrington & Sutcliffe has 45 participants. All are international firms with large offices around the country.

The economic downturn has meant less work for law firms, fewer experienced attorneys leaving jobs and thousands of lawyers laid off. From August 2008 to August 2009, total law office employment fell by nearly 26,000 jobs, a mere 2 percent but striking for an industry accustomed to constant growth.

While a few firms rescinded offers entirely, most have taken pains not to lose graduates they recruited and hosted as summer associates in 2008. They offered stipends for the deferral period, in many cases tying the stipends to public interest work at nonprofits or government law offices.

“We knew them well, we’d invested time in recruiting them and working with them over the summer,” said Eric Kraeutler, firmwide hiring partner at Morgan Lewis.

Most deferred associates remain in big cities. A few, like Murphy, are spending the year away from the major legal centers. Two of the 30 public interest fellows from the firm Mayer Brown are working overseas — one in Brazil and the other in Namibia.