Attorneys get paid in different ways, depending on the type of law, the type of case, and the particular circumstances. Sometimes the lawyer will get paid directly by the client, whether as a flat fee (for example, $2000 for preparing an estate plan) or on an hourly basis. Sometimes the lawyer will get paid by an insurance company, such as the lawyer hired to defend an insured in litigation. Sometimes the lawyer will get paid at the end of a case from the other side (assuming the lawyer wins the case), either as a contingtency (a percentage of the judgment won for the client) or as an attorney fee awarded in certain kinds of cases by the judge.

Regardless of how they get paid, the lawyer pays his/her employees like any other cost of doing business (like the rent, the utility bills, etc.). If the lawyer receives income on a fairly regular basis (such as being paid flat or hourly fees on a number of jobs), then the overhead is paid out of income (like with any business). If the lawyer specializes in large contingency cases, which may only pay the lawyer after several years of effort, then the lawyer must have adequate financial reserves and/or credit to pay the bills until the big payday for the lawyer arrives. As with any business, expenses (including employees’ salaries) do come out of the owners’ pockets.

Like any business, if business is bad, the lawyer may be unable to pay his/her bills, and will go out of business.

A lawyer may very well pay $40K (or considerably) more to a good legal secretary. That depends on the lawyer’s needs and financial resources, the geographic area, the qualifications of the employee, etc. It is impossible to say from the information given if that is realistic for you to expect.