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

The firm also noted other cost-saving measures, including cancelling and deferring discretionary spending and implementing a hiring freeze.

Littler Mendelson

The firm said on April 28 that its salary reductions [39]will range from 4% to 20%. On May 8, equity shareholders will take a 20% cut to compensation, while salaries for nonequity shareholders and staff making above $300,000 will be cut by 15%. The cuts for the highest earners will be followed June 5 by 10% reductions on average for the firm’s other lawyers and staff. Pay cuts will range from 4% for those making $50,000 or less to 13% for those making over $200,000 up to $300,000. While Littler is not laying off or furloughing any employees, it will cut pay by 50% on June 5 for staff who are unable to work remotely, the firm said.

Locke Lord

Noting the firm is in a strong financial position with no long-term debt, Locke Lord said it is implementing some “difficult but preemptive actions” to reduce expenses for the remainder of the year. As of May 1, the Dallas-based firm reduced equity partner draws by 10%, compensation for attorneys and senior staff by 10%, and salaries for support staff by 5%. The firm said in a statement on May 8 that it had earlier furloughed a “small number” of support staff, but now eliminated some of the positions. “We are doing all we can to support the impacted employees,” the firm said.

Loeb & Loeb

California-based Loeb & Loeb is temporarily reducing partner draws[40] by 20% and deferring its April capital distribution to July, because the federal tax filing was moved to that month, according to a memo from chairman Kenneth Florin. The firm also reduced pay of income partners, senior counsel, of counsel, associates and senior staff by 15% and paralegals and other staff by 10%.

Lowenstein Sandler

The 300-lawyer firm, based in New Jersey, said in April that although it was doing well financially, it had decided to pause a portion of planned distributions[41] for equity partners.

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