I worked as a Paralegal in a small law firm in Arizona. When I was hired more than a 1-1/2 years ago there was no requirement for me to bill hours. The attorney I worked for was not willing to give up any of his billable hours, knowing that he didn't have enough to justify his own existence if he gave some up. All client intakes were directed to the Attorney. My reviews were above satisfactory. Six months ago a new office manager was hired and changed their billing policy. This policy is not in writing just verbally communicated.

Three months ago I was laid off due to non-billable hours. From an inside source, I've learned that within two weeks since my layoff they had hired another Paralegal with same title and making less money. Three months in to the job, while working for the same Attorney, the Paralegal still has not billed out any hours.

I know that some states don't allow companies to layoff just to pay a lower salary. I also know that Arizona is an at will state. Do I have any rights to go after the firm for wrongful termination?

There are no laws in any state that prohibits an employer from laying someone off in order to lower salaries. That is a perfectly valid reason for layoffs in all states. What you are thinking of is a few isolated cases where the layoff was shown to be a pretext for age discrimination - i.e. the "higher paid" employees all were older employees, replaced by younger ones.

That does not appear to be the case here; thus, no wrongful term. Sorry.