The Biglaw COVID-19 austerity measures show no signs of slowing down. With state and local governments struggling with how to best respond to the pandemic, the economic uncertainty grows. And the naturally fiscally conservative legal industry is trying to maintain its cash flow in these tumultuous times.
Quarles & Brady is the latest firm making cuts as COVID-19 rages on. As tipsters from the firm have told Above the Law, the firm, which made $266,790,000 in gross revenue in 2018 making it 117th on the Am Law 200, has decided to implement compensation cuts as part of cost-cutting measures designed to deal with the economic uncertainty surrounding COVID-19. The cuts are tiered by position and salaries.
We were on a call where the following was announced for all locations:
• Equity Partners taking 30% cut in quarterly distribution, then a a 20% in bi-weekly draws (indefinite length)
• Non-Equity Partners (making $200,000+) taking 15% pay reduction (indefinite length)
• Associates (and Non-Equity Partners making under $200,000) 10% pay reduction (indefinite length)
• Remaining Staff (indefinite length):
• 10% pay reduction for salaries above $75,000
• 5% pay reduction for salaries below $75,000
• Pay cuts begin with 4/16 paychecks.
• Some staff furloughed – 30 people. Covering their health insurance during this time, hope to re-hire.
And as tipsters note, the firm has furloughed a limited number (~30) of employees.
We reached out to Quarles for comment, but have not received a response.
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).
If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.
Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).