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BigLaw firms lift associate pay again as AI job fears mount

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9

Why it matters

Milbank raised associate salaries on June 2, resetting the Cravath scale with first-year base pay at $235,000 and eighth-year pay at $455,000—increases of $10,000 to $20,000 depending on class year, effective July 1. McDermott Will & Schulte matched the new scale, and Susman Godfrey moved its starting salary to $240,000 this week.

The moves follow the long-standing Cravath scale, the de facto benchmark for top-tier firm compensation. NALP data showed the median first-year salary had reached $200,000 by January 2025, but many large firms had not yet aligned with the highest market moves. Whether other firms will follow remains unclear.

The timing is notable because firms are raising salaries while simultaneously debating whether AI will reduce demand for junior lawyers and reshape the billable-hour model. Attorneys managing associate hiring and staffing should monitor whether this salary escalation holds or whether firms begin moderating compensation as legal automation advances. The disconnect between rising pay and acknowledged technological disruption may signal either confidence in sustained associate demand or a temporary market dynamic before structural change arrives.

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