The number of non-equity partners has increased substantially in recent years, with some estimates suggesting that they may soon outnumber equity partners at law firms. However, this trend has not been without contention. Many non-equity partners are currently involved in lawsuits against their firms, arguing that they experience the disadvantages of both worlds: neither receiving the profit-sharing benefits of equity partners nor the standard tax withholding and employment benefits typical for regular employees.
David Lat, the guest on today’s episode of the podcast On The Merits, discusses how a non-equity partnership can be beneficial for both attorneys and firms if managed properly. Lat, an author of the newsletter Original Jurisdiction and a columnist for Bloomberg Law, outlines strategies that firms can adopt to make the non-equity partner status work effectively for all parties involved. He highlights specific types of attorneys who might particularly benefit from this arrangement.
For those interested, you can listen to the full podcast episode here and subscribe to On The Merits on various platforms, including Apple Podcasts, Spotify, Megaphone, and Audible.