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New York

Of all the places in the world to practice law, New York is one of the most exciting, challenging and dynamic. Wall Street offers a steady flow of work to corporate law firms, many of which have defined the way large scale deals are put together and negotiated. Indeed, many of the US powerhouse firms originated in New York and all US firms of note have an office in Manhattan. The recent credit crunch has had an effect on hiring needs in general but some firms are still looking for antipodean lawyers

Firms in NYC

The towering skyscrapers of New York City are home to many of the worlds leading law firms. A number of them are known as White Shoe firms, being equivalent to Londons crme de la crme Magic Circle firms. Unlike Magic Circle firms which traditionally pay the highest salaries, New York salaries are consistent across the board for top firms and White Shoe firms are not distinguished by paying higher salaries.

Salaries and Billing Targets

Firms in New York pay a premium and generally are a little higher than most other large cities in the US. Billing targets vary amongst firms, though its safe to say that New York law firms are not known for their low billable hour targets. As of May 2008, a general indicative breakdown of annual salaries in USD is as follows:

1 PQE   $160,000
2 PQE   $170,000
3 PQE   $185,000
4 PQE   $210,000
5 PQE   $230,000
6 PQE   $250,000

Taxes

Tax rates for foreign qualified professionals in the United States operate according to a progressive scale as they do in Australia and New Zealand and vary according to whether you file as a single person, married or head of household. Note that in New York income is taxed by the Federal government, New York State and the City of New York. The overall tax rates are not dissimilar to those in Australia and New Zealand.

Bonuses

Its hardly surprising that bonuses which reward hard work and (often) long hours are alive and well in New York law firms! Although billable hours are key to qualifying for a bonus other factors such as performance reviews are part of the equation for some firms. As of May 2008, many firms were paying around $40,000 bonuses to first year lawyers, with more senior lawyers receiving higher amounts.

Relocation Expenses

Firm policies vary widely in this regard however the cost of flights is standard (including immediate family). Other costs such as shipping of personal possessions and temporary accommodation upon arrival vary from firm to firm.

Visa Requirements

Australians can now avail themselves of the E-3 visa that covers lawyers and their spouses and children. Its important to note that the spouse (actual, not de facto) is given full working rights in the US. The visa is initially granted for a two year period and is renewable indefinitely. Other options include the H1-B visa (however there is a limited amount and the quota is usually met before the end of the year in which it was issued) and the greencard lottery which, if successful, can lead to American citizenship.

Qualification Requirements

There isnt any way around it, the NY bar exam is two full days of hell, preceded by two months of rote learning and memorization. New Yorkers will tell you its the hardest in the country (Californians will tell you the same thing). The good news is that firms will pay for your bar review course and pay you while you are studying (some firms give two weeks, others give three to four). Most firms require you to pass the bar within 18 months of arriving (its offered twice a year, February and July). You will also have to take the MPRE (Multistate Professional Responsibility Exam) that isnt nearly as onerous but a required pass is needed to be admitted to the bar.

Cost of Living

The most significant cost of living in New York is accommodation, average monthly rentals are higher than major cities in Australia and New Zealand. Other living costs such as transport are generally less expensive and the prices at restaurants and bars are comparable to what you might expect at home. Tipping is customary for most services (bars, restaurants, hairdressers, etc.). If youre able to secure a job with a major firm the high salaries will generally translate to a higher disposable income than you would have living down under.