Law Firms NAICS 541110

Aug 19, 2025 - Law Schools Push Back on ABA Curriculum Changes

• The American Bar Association (ABA) is getting pushback from accredited law schools for its plan to double the amount of hands-on legal credits students need to graduate. Under the proposal, scheduled for implementation no later than 2032, students will have to take 12 credits (up from the current six) of course work that aims to create real legal work in order to graduate more trial-ready attorneys. The credits can take the form of clinics, externships, simulation courses, or courses that include some element of hands-on legal work. Critics of the proposal say it would be too costly for schools and students, especially those who work part time or have day jobs. Some law school administrators also question the entire premise of the expansion, saying the ABA has not provided enough evidence that the extended credits actually benefit students and that the association is micromanaging curriculum.
• In trying to strike a balance in partner compensation transparency, some law firms are finding a ‘middle-ground’ approach is the best fit, according to Law.com. In completely transparent models, firms report the compensation of all partners, which can often lead to distractions and friction as partners scrutinize various metrics to compare themselves with peers. To avoid the possible pitfalls of full transparency, some firms take the opposite approach, sometimes called the ‘black box’ – where all compensation information is kept confidential. Amid the cultural pull toward transparency and the need for an amiable work environment, more firms are taking a ‘middle-ground' approach where partners can see where they stand on a compensation spectrum rather than the specific dollar amount of every partner at the firm.

• Revenue for the legal services industry grew by 8% in the fourth quarter of 2024, per the US Census Bureau, in an industry that is in high demand due to complicated regulatory requirements and a boom in companies looking for cyber security and data privacy legal services. Other emerging practice areas ripe for growth include healthcare law, intellectual property, and environmental and scientific compliance. Also fueling revenue growth is a 9% jump in billing rates in 2024, per the American Bar Association, with the need for specialized legal expertise in emerging areas driving the cost increases. These issues have all combined into a robust market for legal services, which have pushed the industry to near-record profitability. This does, however, add pressure to law firms in that they will need to almost double profit growth consistently to counter rising operational costs and still meet market demand.
• Federal judges in May 2025 blocked executive orders (EO) from the White House targeting law firms Perkins Coie, Jenner & Block, and Wilmer Hale. The rulings were the biggest repudiation yet of the Trump administration’s strategy of using EOs to target firms that previously worked for Trump’s political rivals or acted as legal opponents in his civil trials. The EOs are roiling the legal industry and triggering a variety of responses. Several big firms, including Paul Weiss and Skadden, have agreed to about $1 billion in pro-bono work for the Trump administration in exchange for dropping the orders, which stripped them of federal security clearances, banned their lawyers from federal buildings, and cancelled government contracts for legal services. The challenges from targeted law firms accused the federal government of retaliation against them based on who they choose to represent and employ.