An Overview of Austin’s Legal Landscape
Austin has long been known as the technology and startup capital of Texas, but the legal industry here is equally vibrant. The city is home to a community of more than 10,000 active lawyers, making it the second largest legal market in the state after Dallas. The firms vary in size, from small boutique firms to leading international firms with a major presence in Central Texas. Lilly & Blackwell, the leading platform of commercial law firms in Austin recently released its 2023 State of Austin Law report, which revealed that the Austin legal market experienced an overall revenue growth of 3.4% in 2022 despite slower growth in the final quarter of 2022.
The legal industry in Austin has become more competitive in recent years, with firms looking to recruit top talent and gain an edge over their competitors. With the Texas economy continuing to boom, businesses are looking for more legal representation to handle their increasing needs. Austin’s legal landscape is characterized by a mix of small, midsize, and large firms across various practice areas . Firms here tend to be more focused on meeting the needs of their clients, emphasizing practical solutions and providing personalized service.
Over the past decade, Austin has seen significant advancements in its legal technology infrastructure, with many firms leveraging technology to streamline their operations and offer innovative solutions to their clients. This has helped in the growth of Austin’s legal tech ecosystem, making it a leading hub for the development and implementation of legal tech solutions.
The legal industry in Austin is also supported by a thriving academic community, with several local law schools producing a steady stream of new legal talent. These schools offer a variety of programs, including those focused on alternative dispute resolution, intellectual property law, and environmental law.
Overall, the legal industry in Austin is a major contributor to the city’s economy and a key player in the regional business ecosystem. The firms here are well positioned to continue to thrive and grow in the coming years, as the city continues to attract new businesses and new talent from around the world.
Largest Law Firms in Austin by Size
There is no exact definition of a big law firm, but most people agree that it refers to a firm with a high number of attorneys. Austin is home to several such firms. The majority of the largest law firms are national or international and have many different offices. The following law firms are in the Austin area and have more than 100 attorneys.
DLA Piper
Overview: This firm has 1,020 attorneys and 130 other licensed paraprofessionals. DLA Piper is the eighth largest law firm in the United States and the third largest that is based in the state.
Major Areas of Practice: This firm has 129 practice areas but focuses mostly on issues confronting businesses, such as corporate law, bankruptcy, and intellectual property.
Skadden, Arps, Slate, Meagher & Flom
Overview: There are 829 attorneys at this law firm, with 25 in Austin.
Major Areas of Practice: Many of the firm’s attorneys in Austin focus on litigation and mergers and acquisitions. Summer associates tend to practice in these areas as well.
Baker Botts
Overview: This law firm has 699 attorneys in the Austin area and a total of 729.
Major Areas of Practice: The Austin office has the largest practice group dedicated to intellectual property litigation within the firm. The firm also has one of the top mergers and acquisitions practices in the country.
Sidley Austin
Overview: This firm has 554 attorneys total, with six in Austin.
Major Areas of Practice: The largest group of attorneys in Austin focuses on litigation, including products liability, intellectual property, and environmental.
Littler Mendelson
Overview: This firm has 522 attorneys and 448 of them are in Austin.
Major Areas of Practice: Given that this firm is comprised entirely of labor and employment attorneys, the practice areas are limited primarily to employment-related issues.
Vinson & Elkins
Overview: The firm has 442 attorneys in total and 334 in Austin.
Major Areas of Practice: Its largest group of attorneys is in the litigation department, followed by antitrust, energy, and environmental law.
Areas of Practice and Specialization
Among the special characteristics of Austin’s largest law firms are the particular legal services that make them stand out. Many of these large firms have unique practice areas that help define their services.
For example, one of Austin’s largest law firms has an entire department devoted to representing municipalities. This firm’s municipal law attorneys in Austin work on municipal projects, local ordinances, development agreements with the city, economic development matters and contracting with the state of Texas.
Another independently recognized leader in the area of regulatory law has established the first and only specialist practice in the United States to focus exclusively on consumer product safety and the internet of things. With consumer product liability claims a large concern for many companies, the attorneys in this Austin law firm’s Consumer Product Safety & Internet of Things Law practice regularly advise clients on product safety and testing comprehensively.
One Austin firm’s 40-plus attorney practice group focuses only on the representation and counsel of health care providers. These attorneys represent all types of licensed health care providers, from hospital and health systems to multi-hospital system mergers, physician practices, managed care organizations, academic health institutions, long-term care providers and other providers of health care goods and services.
Another of Austin’s largest law firms has carved out a specialty in representing companies in the security and privacy fields. Their Computer & Technology team includes attorneys with substantial technology and coding backgrounds to assist with the legal and business issues raised by evolving technology.
Notably, also among the largest law firms in Austin is a company that specializes exclusively in franchise law. This firm’s lawyers are responsible for a diverse franchise practice representing hundreds of franchisors and franchisees across numerous states and industries, which include retail, wholesale, hospitality, food service, distribution, web-based businesses, convenience and petroleum, maintenance and repair service and business-to-business service industries.
Recognition and Honors
The large law firms in Austin have earned a number of accolades and recognitions for their work in various fields of law. For instance, many of these firms have been included in the Chambers USA guide for the United States.
Chambers is one of the best-known publications in the legal industry. Its guide is created based on extensive research and interviews with attorneys and clients to identify the most successful law firms operating in the U.S.
One of the most common reasons for the success of these firms in the Chambers rankings is their employment practices. They are often lauded as some of the few law firms that have achieved a good work-life balance for their attorneys. Many of them are ranked as "Band 1" firms, the highest possible rating, in the state of Texas by Chambers USA 2020.
The Austin Bar Association, which serves central Texas, also compiles an annual list of the best lawyers in Austin. Several of these large law firms’ attorneys make the list.
Many of the large law firms in Austin have also appeared on lists compiled by the Houston Chronicle, such as the 2019 list of the best Texas law firms from the newspaper’s Houston Lawyer publication. The Houston area has a significant population of clients serviced by many of the firms in Austin.
Career Prospects in Austin’s Largest Law Firms
Job prospects in Austin’s largest law firms can be rewarding for those willing to climb the corporate ladder. Morgan, Lewis & Bockius LLP and Fish & Richardson P.C. are among the firm’s with the most prestigious clientele which may offer more competition for a position but could pay off in experience later down the line. Most of the large firms take interns as well as offering full-time positions for entry-level lawyers. The summer associate program at these larger firms have high standards and each firm only accepts a small number of candidates into the program. Large firms also tend to offer a range of employee benefits such as 401(k) plans, medical insurance, dental and vision plans, paid time off and regular bonus opportunities .
For those in entry- to mid-level positions, the yearly salaries recently ranged in this tier from $61,295 to $270,000. For example, Kirkland & Ellis LLP offered $65,000 to recent graduates while Morrison & Foerster LLP paid $120,000. Working long hours is a frequent expectation of a higher-level position and is a common complaint among employees at large firms. As expected, the large firms have the most opportunities to grow with the highest starting positions as well. The office has space for over 50 attorneys and the firm has 55 lawyers and 81 staff members. Kirkland & Ellis LLP has more than 250 employees in Austin. These large firms value employees who share their commitment to building the success of the firm. In addition, they often provide pro bono assistance to help underserved members of the community.
Selecting an Ideal Firm to Reflect Your Needs
With more large law firms present in Austin today than even just a few years ago, choosing the right firm for your specific needs can be challenging. Regardless of the size of the firm, thoughtful planning is essential to ensure that you select a firm that is well suited to meet your needs.
Here are a few tips that may help in finding the right Austin law firm:
- Determine your needs and then prioritize them – You probably have a lot on your mind so prioritizing your needs will give you a roadmap to work from that will make your decision easier.
- Identify the scope of your legal needs and your project – This should be easy if you’ve prioritized your needs. Figure out the time frame you need your legal team to work within, the areas of law your matter may touch and the type of expertise and experience your matter requires.
- Read the fine print in your retainer agreement and understand exactly what you are hiring the law firm to do – Remember that if you are not seeking the advice of in-house counsel, you are hiring the law firm on a transactional basis; they are not your in-house trusted advisor. If you have questions about the scope of the law firm’s services as set forth in the engagement letter, ask questions and don’t be afraid to negotiate the agreement to appropriately distinguish between advice and services you are paying for and those you are not.
- When evaluating the attorney qualifications – Pay careful attention to the details. More than one client has been disgruntled with their law firm because (a) they assumed that the attorney listed as the "relationship partner" was working on the matter, when that person was only monitoring the progress of the matter; or (b) the attorney at the firm who has substantive experience within the industry at issue is not the same attorney assigned to the matter – Client assumes it is and the client becomes frustrated not to be working with the attorney who has the industry background or experience required to further the matter at hand.
- Carefully read the budget section, if included, of the fee agreement – Price is always a consideration in hiring a law firm and clients are often concerned about the amount of budget overruns. The devil is in the details when dealing with law firms and it is important to understand what services are provided under the budget outlined in your fee agreement, as well as what is not.
- If there are multiple firms to choose from on similar projects, consider taking the attorneys you have met with for a "test drive," to get a better feel for their competencies – Consider having a phone conference with the firm to discuss and flesh out the scope of the retainer agreement with them prior to moving forward. Many firms have internal policies that are not adhered to, like the firm’s ability to work on a "contingent basis." If this is something that you have a question about or need to know more about, don’t be afraid to ask for clarification on the firm’s policies. Test driving is the best way to find out if a firm fits your needs.
These six tips should help narrow down the field and make the decision-making process more straightforward. Good luck!
The Evolution of Austin’s Large Law Firms
Looking ahead, the future of large law firms in Austin appears to be one of continued growth and adaptation. With the city’s robust economy drawing in talent and clientele, the next decade promises to be a pivotal one for these firms.
As the legal landscape shifts towards more tech-driven solutions, firms are proactively exploring cutting-edge legaltech prospects that enhance their service delivery. For example, Austin has seen an increase in firms adopting artificial intelligence (AI) for tasks such as due diligence, legal research, and contract analysis. These investments not only streamline processes but make the firms’ offerings more attractive to tech-savvy clients.
Another area of growth is in the realm of alternative legal services (ALSPs). While ALSPs aim to provide cost-efficient options for legal services, large law firms in Austin are also leveraging the expertise of these entities to fill specific gaps in their offerings. For instance, a firm may partner with an ALSP for e-discovery work in a major corporate transaction or litigation. This allows firms to remain competitive while benefiting from the specialized services provided by ALSPs .
The challenge, of course, remains how large firms will differentiate themselves in the face of swelling competition from smaller, agile law firms and ALSPs. Large law firms in Austin are beginning to address this by focusing on niche areas of expertise, superior client service, and forging strategic alliances with other local firms. By carving out these specialties, they can establish their position as go-to authorities in high-demand fields, such as healthcare law, technology law, and intellectual property law.
Finally, the current pandemic has forced firms to rethink their physical office spaces. While many have shifted to remote work, the crux remains if this arrangement is viable in the long term. Half of Austin’s top law firms are already looking to downsize their office space amid the "new normal," thus altering the dynamics of how they operate both internally and in their client-facing relationships.
Given all these factors, the future of large law firms in Austin is closely tied to their ability to customize their models to benefit clients and remain relevant in a dynamic legal environment. All indicators suggest that with the right strategies, Austin’s large law firms will continue to thrive and grow in the years to come.