Recession Spells Rescission: It's Getting Nasty Out There
Okay, not literally; they're almost-but-not-quite anagrams. But it's certainly the case that economic woes are leading employers to retract job offers, left and right.
So rescission is no longer just an equitable remedy; it's a hot new trend in the world of employment. Over the weekend, this report appeared in the New York Times:
Thousands of people are losing their jobs on Wall Street — some before their first day of work.They polished résumés; they sweated interviews; they landed dream jobs. But now a small group of college and business school students are discovering that their careers at Bear Stearns ended before they began. JPMorgan Chase, which bought the beleaguered investment bank last month, rescinded many of their job offers.
Yashoda Khandkar, a senior at the University of Pennsylvania, is among 250 Bear hires who now find themselves unemployed in one of the worst financial job markets in years.
“The worst part about the entire situation is that it’s a really hard market for us to look for other jobs,” Ms. Khandkar said. “We probably can’t get as good of jobs as we would have had.”
Compared to the rescinded offers on Wall Street, what we're seeing in law firm land looks like small potatoes. This makes sense. If finance offers richer rewards than Biglaw during good times, Biglaw should offer reduced risk during bad.
But could it be the case that we don't know the full extent of rescinded job offers in the legal world? From a tipster:
Why aren’t you doing anything about law firms rescinding offers to 2L summer associates?[Firm X] apparently rescinded 15-20 offers in Chicago. [Firm Y] rescinded 15 offers in their DC office. Apparently Charlotte is getting hammered...
Please look into this, and if it's true, hammer these firms and protect the rest of us!
We are following up with the firms mentioned by our tipster, and if we can confirm the rumors, we will report them in these pages. In the meantime, if you have definite knowledge of a firm rescinding offers of summer or full-time employment -- e.g., your own offer was rescinded -- please email us (subject line: "Rescinded Job Offer"). We will investigate and report back. Thanks.
Update: A commenter points out this helpful article on the NALP website, Rescinded Offers: Mitigating the Effects of Rescinded Offers ("adapted from an article published in the August 2001 NALP Bulletin").
Bear Stearns’s New Hires Become Job Seekers [New York Times]
Law Firms Curtail Associate Programs As Economy Slows [Wall Street Journal]
(67) Comments
I can definitively report that I've had a nightmare about this happening to me.
I am getting so excited for the UPenn State trolls to comment!!
Hey - I wonder if that girl was in Wharden or just the regular college in Happy Valley.
"We probably can’t get as good of jobs as we would have had"
Penn State doesn't offer courses in grammar, it seems.
On an unrelated note, why the hell does my firm want me to give them my 3L grades?
"We probably can't get as good of jobs as we would have had."
Not with grammar as good as that, you can't have jobs as good. I mean, I understand that people speak informally, but if you're being quoted as being out of work and looking, you could at least try to phrase your one comment coherently.
The lateral hire market sucks too, despite what the cold-calling recruiters say.
2:57 = pwned
2:56 - get over it, Strunk.
2:57, that's standard procedure to make sure you did not suddenly develop a heroin habit in your 3rd year. Unless you stopped showing up to exams, you are probably OK.
Either that, or they are looking for a pretext to can you.
http://www.nalp.org/content/index.php?pid=25
So it's the transactional people and those in smaller markets that need to worry, right? People sitting on offers to join V10 lit depts in NYC are safe, right?
Whatever. The IBs pulled this same move for those of us graduating in 2001: either asking people to take "delayed starts" (and then firing them) or bringing people in (and then culling the herd through training). Besides, I'm not sure why anyone should weep for a few disappointed Ivy League kids when layoffs are now coming in the 10Ks.
2:57 = pwnt.
Go to class nub.
For future reference, it's "Wharton"
wharden?
What is "Wharton", do you mean the Penn State business school?
3:31, everyone knows it's called either the Warden Institute or PSU Warden.
Get a clue, ass.
What does it mean if your firm asks you to take a drug test?
I think it's actually UPENN State. The all-caps spelling is important.
boo hoo
Poor baby Ibankers.
Not sure if its true - but I've heard TPW has rescinded some 3L offers. Guess I'm not surprised.
Can't wait for football season! UPenn will kick ass this year- Go Lions!
Sonnenschein's problems aren't isolated to Charlotte. They've also shortened the summer program from 12 to 10 weeks in New York.
DOOOOOOOOM!!!!
What is the sanction if a firm fails to follow the NALP rescission guidelines?
http://www.nalp.org/content/index.php?pid=25
Anybody know what firms this is supposed to refer to? Or is someone starting nasty rumors.
All of us at Wachtell, Cravath, S&C, and STB give a little cheer for job, salary, and bonus security!
Apparently the Chicago firm is Mayer.
3:21 - call your firm and ask.
3:38 - It means they want to know if you're worth going to any parties with, especially in Vegas.
4:25 - not true
If your firm offers you money not to sue them, don't take it. Rescinding offers needs to be as expensive for them as it is for you. And given the fact that you're unemployed because of them, it's not like you have anything better to do with your time.
Are Latham 3Ls safe?
4:25 - correct
The class of 2001 is getting the most screwed out of all of this. They had to deal with a recession when they were hired and now they must deal with another when they are up for partner.
4:24 = STB troll.
4:29 - not especially.
Latham second-year
4:25, 4:30 - The Chicago firm is NOT Mayer.
i smell class actions...
I'm pretty sure this is a nasty rumor (at least with respect to Chicago) ... I haven't heard about any rescissions among the big firms.
A little lesson for the confused:
::Private School::
-University of Pennsylvania = UPENN...not "UPenn State"
-Wharton is the business school at UPenn.
-i think the Quakers are their mascot
::Public School::
-Pennsylvania State University = PSU...something totally different, especially on an academic level (and not to mention tuition).
-nittany lions is the mascot, joe paterno is the old dude (!)
A little lesson for 4:51,
I know you mean well, but don't bother preaching to the posters of ATL. Their actions are intentional--not the result of confusion.
So is it Mayer or not? Can we get some authority behind either side's claim, or both just echoing the rumor mill?
4:51 so which school, UPenn or Upenn St has two campuses for their law school?
elaborate mr. latham second year
To 4:54: I'm not new to ATL, thanks.
To 4:58: Penn State is affiliated with the Dickinson School of Law now, and they have one campus in State College, Pa and one in Carlisle, Pa (and ever since PSU got a hold of Dickinson they have plummeted in the rankings...but we all know how heavily that has been reported on in ATL)
Lat: Hm, I need to generate some hits today.
*Writes up fear-monger post about risk of everyone losing their jobs and links to an article about college students having offers rescinded from the financial institution most deeply effected by the current economic downturn.*
I'm going to assume Latham 3Ls are safe, given that Latham didn't rescind offers in the 90s or in 2002. Plus, they're a well managed, highly profitable firm. This firm didn't get where it is by rescinding offers.
5:20 - word
A little lesson for 4:51:
YOU JUST GOT REVERSEPWN3D BIGWILLIESTYLE!
504 needs to take his annoying ass back to xoxo
am I to understand that UPENN DOES NOT have a good football team? I thought they historically have produced a myriad of pro players... As for U Penn State, its business school must be first rate; THE DONALD attended there.. That guy shits money....
Unless my offer gets rescinded, I'm glad the finance sector's getting screwed. NYC rent went down 7% last year. It can only keep falling given the ailing financial sector, and that means things will be cheaper when I get to NY.
5:09 = TOTAL IDIOT!
5:10, do you have any support for the 7% drop? i live here and i'm pretty sure that's bullshit.
Is this another post about Heller?
Seriously, Lat, get a grip.
Mayer in Chicago is just a rumor, I believe.
My guess would be if there's any truth in this it's a small firm. No major firm would risk it, would kill their future recruiting. They'd rather suck it up for the summer and find a pretext to no-offer people.
3:21/4:29,
I guess you didn't get enough oohs and ahs the first time. Don't be so insecure. We're all really impressed.
If Obama gets elected it probably doesn't make any difference whether offers get rescinded. With all his proposed tax hikes, biglaw take home pay will soon equal what you'd get if you were on welfare and in default on your student loans.
Any firm that is rescinding 15-20 offers in its Chicago office is not a "small" firm. That's as many as a Schiff Hardin *makes.*
Rescission! The sky is falling! The sky is falling!
"Latham didn't rescind offers in the 90s or in 2002"
Yep, but they did lay off a bunch of associates in the early 90s. Back when a big summer class was half teh size tehy are today. No one is really safe.
True 753, but wouldn't they lay people off before they rescinded offers? It seems like firms take a much bigger hit to their reps if they rescind offers than they do if they lay people off. Plus incoming associates can easily be placed in any dept where there's work, plus they're cheaper.
Gang Wars: Bangin' in Little Rock!
4:08 - If I remember contracts correctly, it is rescission of the rescission. But b/c the hiree is at will, she is subject to termination.
So we should all stick it out at law firms till the recession is over, then jump to wall street to get rich.