Pay Cuts, Layoffs, and More: How Law Firms Are Managing the Pandemic

On June 29, Katten said some of those furloughs will be made permanent. [37]Katten enacted a “separation agreement” with many of its furloughed business administration staff, the firm said, noting the layoffs, starting Aug. 1, would not affect any attorneys at any level. Equity partners received monthly payouts in June, but at a 25% reduction from previous levels.

Kelley Drye & Warren

The firm said on April 14 that equity partners’ draws will be reduced on a proportional basis by as much as 20%, effective April 30. There will be an across-the-board, prospective salary reduction of 10% for all other lawyers and employees earning over $100,000, effective May 15. Also, the July 1 administrative staff salary increases will be postponed.

The firm also shortened the summer program, delayed the start of our first year associate class and postponed non-essential hires. It has also suspended services provided by non-essential consultants, independent contractors and vendors.

Kilpatrick Townsend & Stockton

Kilpatrick has temporarily cut partner draws by an average of 10%, effective April 7, and it will reduce pay by 5% for other lawyers and staff as of April 16, the Atlanta-based firm told Law.com in a statement[38]. Secretaries, who are hourly employees, will have their work time reduced by 20% as of April 20.

KPMG – Australia

KPMG said equity partners across the entire firm have agreed to forego a partner distribution payment due in mid-April. It added that over the four months beginning in May they will take an effective pay reduction of 36%.

K&L Gates

In a firmwide email provided to ALM, K&L Gates announced equity partners’ scheduled advances will be reduced by 20% in April and “subject to review each month going forward.” Income partners, associates and staff will experience a 15% reduction in salary, with a floor of $75,000, the firm said, beginning May 1.

“This reduction will be revisited on a regular basis as the year progresses with the goal of mitigating or eliminating it as circumstances warrant.  All personnel will be considered for discretionary bonuses for extraordinary performances or contributions, as many are working very hard through this period,” the email said.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Share