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It’s summertime, but the livin’ hasn’t been easy for the legal profession thanks to the coronavirus crisis. While some law firms have been left struggling, others seem to have developed antibodies to the virus that’s swept the nation and disrupted profits. We now have news of another law firm that’s decided to partially roll back its COVID-19 salary cuts, something that’s now become a major trend.
Back in April, Fox Rothschild announced that salaries would be slashed across the board, from partners to staff members. Specifically, a tiered salary reduction of between 10 percent and 15 percent for all attorneys and staff making more than $100,000 would take effect in May, while partners would reduce their monthly draws between 10 percent and 20 percent. At the same time, the firm announced that no layoffs would take place (but we have a feeling that the “productivity and performance-related dismissals” that occurred were likely stealth layoffs).
Four months have passed, and employees at the firm are finally getting some good news when it comes to their paychecks.
In an announcement made earlier this week, firmwide managing partner Mark Morris said that on September 1, half of the cuts made to partners’ monthly draws would restored and half of the reductions to attorney and staff salaries would be also be restored (i.e., next month, partner draws will be cut by 5 to 10 percent and attorney and staff salaries will be cut by 5 and 7.5 percent).
“While we will monitor and evaluate the situation to ensure continued financial flexibility in the months ahead, we are encouraged that in only four months, we are able to reverse course on some of these measures,” [Morris] said. “Our goal remains to be in the best position to serve our clients and provide the support they need to navigate these uncertain and challenging times.”
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).
Fox Rothschild Partially Rolls Back COVID-19 Salary Cuts [Law360]
Earlier: Am Law 100 Firm Goes With Good News / Bad News Approach To COVID-19 Austerity Measures
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.