The closer we get to the end of the cursed year that is 2020, the more Biglaw firms decide to reverse their COVID-19 austerity measures once and for all. The firm we have news on today will be wishing its employees a very happy new year by repaying all of their salary reductions in full by December 31 and paying out bonuses.
You may recall that back in April, Davis Wright Tremaine — a firm that came in 92nd place in the most recent Am Law 100 rankings, with $414,144,000 in gross revenue in 2019 — announced across-the-board salary cuts and employee furloughs, effective in May. These cost-cutting measures ranged from from reduced partner distributions and slashed salaries for associates and staff to furloughs and reduced schedules for staff. In September, the firm dialed back those cuts, restoring 50 percent of the salary reductions that were made and bringing back a number of furloughed staff (while at the same time permanently laying off others).
Now, just in time for the end of the year, Davis Wright Tremaine is committed to making the holiday season extra happy for its partners, attorneys, and staff. Here’s what the firm is planning to do by the end of 2020:
- Repay all 2020 salary reductions: All lawyers and staff who had their pay reduced this year will receive repayment of those reductions in full by December 31.
- Award discretionary year-end bonuses: Associate/counsel and staff discretionary bonuses will be awarded to recognize exceptional contributions.
- Restore equity partner distributions: We also expect to bring equity partners to 100% of total 2020 budgeted shares with the year-end distribution.
At this time, we don’t know what the discretionary bonus scale looks like at the firm. If and when we find out, we will make an update.
But that’s not all, folks. DWT has good things in store for 2021 as well:
- Fully restoring salaries for 2021: Beginning with the first pay period in January, all salary reductions instituted in 2020 will be eliminated.
- Restoring the profit sharing program for staff: This program will be restored in January, which will also reinstate partner contributions to the plan and permit partners to make contributions to the cash balance plan.
Congratulations to everyone at Davis Wright Tremaine. We’re sure all employees will be able to start 2021 on the right foot with a big, fat reimbursement payment.
If your firm or organization is slashing salaries or restoring previous cuts, 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.
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.