Agencies Are Paying Different Wage Rates For People On the Same Project
Would it surprise you to learn that different contract attorneys are not always paid the same wage rate for doing the same exact work? This discrepancy holds true even for those staffed on the same project and responsible for performing the same set of duties. If you are working on a temp assignment, you could very well be earning less than what the person sitting next to you is making. Unless you are performing contract work due to some inexplicable, altruistic motivation, this should come as disturbing news. Like it or not, this is a well documented common agency practice. Not all agencies engage in this manipulative practice, but it happens much too frequently.
I Was Paid Less Than The Other Temps On the Project
When I first started doing contract work not too long ago, I was staffed on a long term project by an agency that offered me a wage rate slightly lower than the market rate of $35. Despite my initial hesitation, I took the assignment because there were promises made by the agency that the project had the potential to last a very long time. Because longevity is a valuable commodity in the temporary lawyer business, I agreed to the slight wage reduction as consideration for the opportunity to work on a longer duration project.
A few months into it, I was sitting at my computer command station with my headphones on when I casually overhead two contract attorneys discussing their document review experiences. One temp had been on the project before I came along and another had only recently joined the team. The subject of wage rate disparity came up and the newer temp mentioned that the agency was paying him a rate of $35 an hour. The older temp immediately became agitated and expressed his shock and incredulity. Apparently the older temp was only being paid $33 and had been under the impression all this time that everyone else was being compensated at the same rate. The only reason he had agreed to the pay cut was because the agency had promised a long stint.
This information disturbed me greatly. After all, I later learned, we were all DC barred and likely being billed off at the same rate. Eventually more contract attorneys joined the conversation, and we discovered that only the newer temps were being paid the slightly higher wage rate. Several of us immediately called the agency to demand an explanation. After several attempts at feigning innocence and putting the blame on the law firm, the agency agreed to bump the wage rates of those affected to the same rate as everyone else. Requests for retroactive application were rejected.
Comparatively, my story is tamer than the ones I’ve heard from some other people. One individual being staffed on a supposedly lucrative foreign language review was being paid a rate of $40 an hour. It was not until a few months into the project that she learned that her similarly situated peers were being compensated at $53.
While not legally improper, the practice of paying different wage rates is very distasteful and underhanded. While not all legal staffing agencies practice this, some do, and those that do this give the rest a bad name.
Temporary Legal Staffing Agencies Try To Limit Information To Maintain their Competitive Edge
Many legal temp agencies try to make the discussion of certain subjects taboo. Most, if not all contract attorney staffing agencies have their own boiler plate employee policies that expressly prohibit temps from discussing topics such as wage rate. The conclusion I can draw is that agencies want to adopt policies that will allow them to maintain competitive control over their temps. While they want the strategic right to offer different deals to different contract attorneys, they also want to limit key information that could cause rebellion or unrest in Temp Town.
I think these agencies must be really naive if they think they can perpetually keep their contract attorneys in the dark. You know what they say. You can fool some of the people all of the time, and you can fool all of the people some of the time, but you can’t fool all of the people all of the time.
Agencies will not be able to fully prevent contract attorneys from talking among themselves regarding subjects like compensation. If legal staffing agencies want to encourage loyalty among their contract attorneys and ensure quality of effort and work, it’s in their own interest to maintain fairness in how they treat their contract employees. There is nothing good that can come out of paying similarly situated workers differently.
I will not list names at this time, but I know many contract attorneys are already well aware of which agencies have this type of shady practice. Their tainted names are routinely circulated among those in Temp Town.
November 13th, 2007 at 12:15 pm
I have never seen this phenomonon arise on projects where everyone is similarly situated, as far as credentials are concerned. But I have seen it on one project where some of the team members were D.C. barred and some were not. The evil there is that you have D.C. barred attorneys and non-D.C.-barred attorneys doing the same work.
If a project team is under the supervision of an associate, there is no reason why they should have to be D.C. barred in order to do rote, document review. Project attorneys who are D.C. barred, on the other hand, should be able to take on higher level work.
But the ethics opinion on Rule 49 that pertains to contract attorneys states that the turning factor in determining whether an attorney is engaged in the practice of law is whether they are being billed out as an attorney–not the type of work that they are performing. So an attorney can be doing the same work as a paralegal, but if the attorney is being billed out as a lawyer, then the attorney is engaged in the practice of law.
But no one has said what the magic number is.
In drafting its opinion, I wonder if the ethics committee enlisted any contract attorneys to advise them on how their opinion would affect the competence standards that were outlined in the ABA’s 1992 McCrate Report. Maybe you should write to them and ask.
November 15th, 2007 at 8:18 am
It’s an obvious point. The piece is too long and lacking in punch.
November 22nd, 2007 at 1:58 am
Wow, what a stupid comment. Go back to Russia and join the communist revolution. This is america and you are only worth what you are willing to accept. Taking the lower rate is your short comings. Probably why you are working with headphones on. Take charge of your life and career by getting what you are worth based on what you are worth not others. Welcome to capitalism already in progess..
November 23rd, 2007 at 2:37 am
While I don’t totally agree with the tone of John’s comment, I kinda agree with the sentiment. There should be fluctuating wage rates.
I’ll concede that it seems unfair for two attorneys to do the exact same thing for the exact same temp agency and get paid differently. But, I do think that different temp agencies should have the option of having different wages, even if multiple agencies are staffing the same project. I’ve read a comment (maybe even on this very same blog) complaining about how all the agencies seem to collude to set a fixed price for contract attorneys. I’d like to see more competition. In my geographical area, there does seem to be some variation in wages. I don’t like it when agencies all gang up together and decide “okay, $30 is it. We’re all going to pay that rate and none of us are going to pay any higher.” Let the markets figure it out. The temp agencies that pay the best will undoubtedly do the best, and perhaps other agencies will follow suit. Otherwise, there will never be wage rises.
January 9th, 2008 at 2:52 pm
I’ve always analogized the DC temp lawyer debacle to the Pimp/Whore scenario. Everyone knows that the pimps (agencies) love the young whores (new contract lawyers). They are impressionable, and have not been jaded by the system yet. Once they (agencies/pimps) bring them in by paying a higher rate, they’ve locked them into the prostitution ring. Subsequently, as time goes on and they become old used up whores, the ‘ho’s’ are more likely to take whatever rate is presented; as long as they’re based upon promises of longevity.
“Look bitch, I’m gonna pay you $28/hour. Now, you know how long you’ve been my ‘ho’?! Don’t worry; I’m looking out for YOU. You know how much money we’ve made together? This project may go for three months!â€
Hell, THREE rent checks in that god-forsaken overpriced evil town is like gold.
January 14th, 2008 at 1:49 am
Forcing the employer to pay everyone the same — collective bargaining or antitrust violation?