I had this problem when I worked as an attorney where billable hours rule. If I efficiently got a memo done in 2 hours and someone else took 4 hours, the person who took 4 hours ends up with more billables and is a better associate in the eyes of the firm.
I think it depends on the law firm. For instance, in patent law, with fee caps, you generally want to complete the work as quickly as possible to avoid running over budget. And, since there was plenty of work, it wasn't a problem. I generally cut my own hours to get in under the cap.
Back when I was doing patent law, well before the market collapse, there was generally a pretty solid supply.
These days I do contingency fee work with no billable requirements, so hours aren't an issue.
