Legal Definitions - billable hour

Billable Hour

A billable hour refers to a unit of time that a legal professional, such as an attorney, paralegal, or law clerk, spends working on a client's case or matter, for which the client is subsequently charged. These hours are typically tracked in smaller increments, often in tenths or quarters of an hour, to ensure accurate accounting for the services provided.

Here are some examples illustrating how billable hours are applied:

• Imagine a lawyer representing a client in a personal injury lawsuit. The lawyer spends 1.5 hours drafting a detailed complaint to file with the court, outlining the client's claims. This 1.5 hours is recorded as billable time because it represents work performed directly on the client's behalf, for which the client will be invoiced according to the agreed-upon hourly rate.

• Consider a business client seeking advice on a new contract. A corporate attorney reviews the proposed agreement, identifies potential legal risks, and suggests revisions, taking 3.2 hours to complete this task. These 3.2 hours are billable because the attorney is providing specialized legal services directly related to the client's business transaction, and the client will be charged for this time.

• A paralegal is tasked with conducting legal research for an attorney who is preparing for a client consultation regarding a complex property dispute. The paralegal spends 0.7 hours researching relevant case law and statutes. This 0.7 hours is considered billable time because the paralegal's work directly supports the client's legal matter and contributes to the legal advice the client will receive from the attorney.