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Thanks to the global pandemic that is the coronavirus, it’s beginning to look a lot like 2008. The stock market plummeted for the second time this week, both times triggering circuit breakers to suspend all trading. Law schools have canceled in-person classes and have shifted to online coursework, some for the rest of the semester. Some law firms have shuttered offices, with others encouraging attorneys to work from home until further notice.
All of this upheaval got us to wondering what would happen to Biglaw summer associates. Of course, as noted by the American Lawyer, Biglaw firms have already interviewed law students and selected their incoming summer classes.
“We did our hiring for the summer [and] fall months and months ago,” said David Greenwald, managing partner at Fried Frank Harris Shriver & Jacobson. “That’s locked and loaded.”
Same for Washington, D.C.-based tax boutique Caplin & Drysdale, although the timing was closer.
“[On campus interviews] just finished, and the summer offers are out,” said firm administrator John Riggleman. “Three weeks back, it probably would have had a greater impact.”
But if the coronavirus sticks around, could we be facing a situation where upcoming summer programs are possibly postponed or canceled outright?
“On summer programs, while there may be some cancellations, I would be surprised to see mass cancellations due solely to COVID-19 concerns,” said Zeughauser Group consultant Kent Zimmermann. “The bigger issue in my mind is what happens to the macroeconomy. If there is a sustained macroeconomic downturn and it depresses demand for legal services, similar to what happened after Lehman Brothers, firms may cut back on their summer programs and other expenses, similar to what happened as a result of the financial crisis and its impact on the broader economy and the negative impact of that on demand for legal services.”
While some think they’re “going to get through this just fine,” law students who thought their careers were mapped out are growing increasingly worried. To that end, a Reddit post that has since been deleted detailed $24,000 payouts for law students from law firm that allegedly cut its summer program due to the coronavirus outbreak.
While we genuinely hope that things will work out, we are but a few weeks into what could be a very long journey when it comes to containment of the coronavirus and a potential recession that could drive the legal market into chaos.
Is your firm planning to hold its summer associate program as planned, despite coronavirus concerns? Please text us (646-820-8477) or email us (subject line: “Coronavirus Summer Associate Program”) and let us know. Stay safe.
How Coronavirus and a Bear Market Could Upend Law Firm Hiring [American Lawyer]
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.