Tracking COVID-19's effect on V100 associate pay/layoffs Forum

[Wild Card]

This seems like a good way to do it. Surprised there aren’t more firms following this.

*gets call from practice group leader at 9:00 PM on a Friday night*

"So your hours have been low, and they're going to be low for the foreseeable future... not that any of this is your fault... You saw Dave's email, right? Well, I strongly ... strongly urge to accept this voluntary offer. Please think about it and get back to me by Monday morning. Thanks."

*3 months later*

"I think it's time we part ways. IT will be in touch with you about sending back your firm-issued laptop and iPhone. You will remain on the payroll--at 30% of your regular pay--for two months. You will remain on the website for two months. Here is a number for transition services. Good luck."

[Anonymous User]

There is no factual basis for the claim that BSF will be reducing base comp for associates and its inclusion on this list even as potential is scaring folks unnecessarily. There have been discussions about proposed changes to the formula used to calculate bonuses, which a poster evidently confused with cuts. The firm has said it is not making any cuts to base compensation or any other comp changes as a result of Covid-19.

[QContinuum]

There is no factual basis for the claim that BSF will be reducing base comp for associates and its inclusion on this list even as potential is scaring folks unnecessarily. There have been discussions about proposed changes to the formula used to calculate bonuses, which a poster evidently confused with cuts. The firm has said it is not making any cuts to base compensation or any other comp changes as a result of Covid-19.

You may have somehow loaded an older version of the list. I agree with your reasoning above and removed BSF from the table earlier today. I agree that the titular post should only include confirmed pay cuts/freezes/layoffs, and not rumors or "potential" moves.

[Wild Card]

Baker Botts (V45)

In order to avoid layoffs and preserve its employees income, lawyers and staff at the firm will see temporary salary reductions starting May 1, Baker Botts chairman John Martin said in an internal email to the firm obtained by Bloomberg Law.

Partners at the firm agreed to take compensation reductions to “absorb the bulk of the financial impact expected from the pandemic,” Martin’s message said.

Counsel at the firm will receive a 20% to 30% cut, based on salary level, according to the email. Associates will receive a 20% cut, while staff will see cuts ranging from 0% to 25%, based on their salary level.

The email said the firm will not be reducing salaries for employees making less than $70,000 a year.

...

The temporary cuts will remain in place until July 31, after which the firm will reevaluate its strategy going forward. In the meantime, however, the firm will evaluate and potentially award interim bonuses to “exceptional contributors,” based on performance and economic and firm conditions, the email said.

https://news.bloomberglaw.com/business- ... d-pandemic

[QContinuum]

Baker Botts (V45)

Thanks, Wild Card - added.

[wisdom]

Sheppard Mullin (Vault No. 74) - 12% associate salary cuts through end of year:

https://abovethelaw.com/2020/04/sheppard-mullin-cuts/

[Ultramar vistas]

Baker Botts, 20% for associates and up to 30% for counsel.

[Monochromatic Oeuvre]

This seems like a good way to do it. Surprised there aren’t more firms following this.

*gets call from practice group leader at 9:00 PM on a Friday night*

"So your hours have been low, and they're going to be low for the foreseeable future... not that any of this is your fault... You saw Dave's email, right? Well, I strongly ... strongly urge to accept this voluntary offer. Please think about it and get back to me by Monday morning. Thanks."

*3 months later*

"I think it's time we part ways. IT will be in touch with you about sending back your firm-issued laptop and iPhone. You will remain on the payroll--at 30% of your regular pay--for two months. You will remain on the website for two months. Here is a number for transition services. Good luck."

To be fair, that's just basically three more months of partially-paid severance than you'd otherwise get. There's no real reason it would be a trap.

I, and a good chunk of my midlevel coworkers, would be all over this if it came to my firm.

[QContinuum]

Sheppard Mullin (Vault No. 74) - 12% associate salary cuts through end of year:

https://abovethelaw.com/2020/04/sheppard-mullin-cuts/

Thanks, added to the original post.

[Anonymous User]

So what do you do when your pay has been cut but your work load is increasing? I took more than a 2 class year pay cut and I am still working nights and weekends....if you still have like a 2200 to 2400 hour year, think any of these firms will make associates hole? Or is the answer just to jump to a firm that hasn’t cut pay?

[wisdom]

https://abovethelaw.com/2020/04/am-law- ... -for-some/

Littler Mendelson (Vault No. 99) - sliding scale of pay cuts, 11-15% for associates

[QContinuum]

https://abovethelaw.com/2020/04/am-law- ... -for-some/

Littler Mendelson (Vault No. 99) - sliding scale of pay cuts, 11-15% for associates

Looks like a sliding scale of 11-13% for associates; the 15% is for non-equity partners and non-attorney senior staff making >$300k.

[wisdom]

Davis, Wright Tremaine (Vault No. 90) - 12% associate pay cut

https://abovethelaw.com/2020/04/am-law- ... -all/?rf=1

[QContinuum]

Davis, Wright Tremaine (Vault No. 90)

Added, thanks.

[Anonymous User]

Katten Muchin Rosenman announced pay cuts today. 20% salary reduction for anyone making over $100,000. There were furloughs announced but no attorneys were furloughed.

[Sackboy]

For ease of copy/paste:

Katten Muchin Rosenman (V81) - 20% pay cut for associates

[objctnyrhnr]

Predictions??:

1. When all of this is said and done and firms stop cutting and/or laying off associates, what % of the vault100 will have done so

2. In what month/year will the last vault100 firm to take one of those two steps have taken one of those two steps? (Ie how long will this last?)


I predict like 60 firms in total, and I predict the bleeding (as defined by those two things) stops this fall regardless of what’s going on with covid.

[wisdom]

Predictions??:

1. When all of this is said and done and firms stop cutting and/or laying off associates, what % of the vault100 will have done so

2. In what month/year will the last vault100 firm to take one of those two steps have taken one of those two steps? (Ie how long will this last?)


I predict like 60 firms in total, and I predict the bleeding (as defined by those two things) stops this fall regardless of what’s going on with covid.

1. About 2/3, 65-68 firms

2. Salary cuts are the first wave of cost reduction measures, layoffs will be the next. If layoffs, they could be happening in early 2021.

[Anonymous User]

Is it a possibility at all that some firms have already lifted their pay cuts? This Law360 list was updated today, and there are some firms who had previously announced pay cuts (Arent Fox, Foley Hoag) who are not listed as implementing pay cuts by the Law360 list. Does that mean inaccurate reporting or that they potentially lifted their paycuts? Also worth noting that Katten isn't listed at all, but that seems more expected since they announced only 3-days ago.

https://www.law360.com/articles/1264699 ... e-downturn

[Anonymous User]

Goodwin Procter (V37) is doing stealth layoffs. 3 months for affected people to quit or move on, and being done for "performance" reasons. In my corporate practice group, can anecdotally say about 15% of associates affected but not sure how widespread it is across the firm and practice groups.

[stoopkid13]

Associate and staff layoffs at BSF's LA office according to Law360. No severance offered. BSF claims it's in response to partners leaving for K&S.

[Wild Card]

Goodwin Procter (V37) is doing stealth layoffs. 3 months for affected people to quit or move on, and being done for "performance" reasons. In my corporate practice group, can anecdotally say about 15% of associates affected but not sure how widespread it is across the firm and practice groups.

I'm deeply sorry to hear. I hope you're spared. If not, I hope you land comfortably.

[Wild Card]

Associate and staff layoffs at BSF's LA office according to Law360. No severance offered. BSF claims it's in response to partners leaving for K&S.

According to Bloomberg, associates in both New York and Los Angeles have been laid off. The report, originally published in Business Insider, relies on 7 unnamed sources.

https://news.bloomberglaw.com/business- ... california

https://www.businessinsider.com/boies-s ... 020-4?IR=T

[Wild Card]

https://news.bloomberglaw.com/business- ... amid-virus

"Associates will see their salaries reduced by 20%, the firm said, though the existing bonus program will not be affected by the reduction."

Squire Patton Boggs (V72): 20% paycut for associates

[Anonymous User]

on stealth layoffs, i know firsthand that this is happening allready including at firms that announced they wont be cutting salaries, furlowing etc, but am/was at a non-vault 100 (amlaw 200).

heard secondhand about morisson and forestor doing this in the past month.

any1 else?