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Biglaw firms continue to roll out cost-cutting measures, and much like the social distancing and isolation that have become part and parcel of our everyday lives due to the coronavirus pandemic, there seems to be no end in sight. From salary cuts to furloughs to layoffs, law firms across the country are doing their damndest to keep their heads above water amid the economic upheaval that’s been brought about by the COVID-19 outbreak.
We’ve received word that yet another Am Law 100 firm is trying to save on cash by having employees share in its financial pain. Ogletree currently places at #73 in the latest Am Law 100 ranking, and sources tell us that the firm decided to cut both salaries and workweek hours for its staff, with some going as far to say their salaries have been halved. We’ve also been told that while the firm has approved special COVID pay for some, when that runs out, they’ll be on unpaid leave (with paid benefits through May 31). It sounds like this is just a polite way of saying these employees have been furloughed. Here’s an excerpt from a memo we received:
A rather distraught source had this to say about what’s happening at the firm:
In my department, I’m working only two days a week and pulling from a firm-funded COVID leave fund to make up my pay. But once that runs out next week, I have to use Paid Time or Sick Leave. There is no guarantee that I will even be able to work the two days I am now by the end of the month. I have been told I will have to apply for unemployment at that point.
On top of the matters affecting staff members at the firm, Ogletree has canceled its 2020 summer associate program. The 36 law students who were supposed to work at the firm this summer will not receive any of the compensation that they were relying upon, and sources tell us that unlike other firms, Ogletree has not guaranteed future employment — only hope of such offers “when we emerge from the crisis.”
Last, but not least, sources claim the firm has allegedly laid off attorneys in one of its Texas offices. We are unable to confirm these reports at this time.
We reached out to the firm several times for comment, but have yet to hear back.
If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).
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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.