K&L Gates to Nickels and Dimes

Just yesterday we told you about K&L Gates’s seemingly strong position despite this depressing economy. We even included a quote from firm chairman Peter Kalis crowing about his firm:

We have no debt — no long-term debt, no short-term debt — and therefore have a balance sheet that allows us to grow aggressively into a downturn

If that is all true, why would the firm go cheap on the small stuff? One tipster reports:

Last week, the firm switched to cheaper bathroom supplies. The TP’s flakier than a box of Kelloggs. The paper towels dissolve on touch; you’ll know a K&L Gates lawyer by the paper-mache hands. I won’t even mention “the stink.” Smart associates bring chewing gum.

Is there any way to reconcile “top flight law firm” with “unsanitary working conditions?”

After the jump other “perks” K&L Gates is taking away.


The same tipster reports a move that might have gone unnoticed given that all the smart money is currently locked up in mattresses:

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The firm’s 401k contribution is gone — not like anything would have survived the last few weeks anyway, but come on, the partners just had three days of golfing in a swank resort.

This is more Shock Doctrine policy making. Nobody really cares about employer 401K contributions when their 401K has already been decimated. But when the economy turns around, people are going to have to lobby K&L Gates to give them back something they shouldn’t have taken away in the first place.

But the ultimate miserly move came from an email sent out to all Pittsburgh associates last night:

The firm has modified its policy concerning payment of dues for bar associations as set forth in the Lawyer’s Manual …

In Pittsburgh, dues for the PBA and ACBA will be paid upon request of the lawyer. At the time that these memberships are due for renewal a communication will be issued by [Redacted] indicating that anyone who wishes to continue membership should return to her the applicable paperwork. Membership however should not be perfunctory. Please take an extra minute in the coming year as you review the paperwork to consider whether the benefits of membership merit the cost to the firm.

With respect to the ABA, the firm has modified it’s approach and will pay the cost of membership only for those individuals who are actively involved in committee activities and can demonstrate a clear benefit to the firm and our clients from membership. Membership dues for the September 1, 2008 – August 31, 2009 fiscal year have not yet been remitted by the firm. Accordingly, we will implement the new policy for the current ABA year. If you are active in the ABA, and can demonstrate a benefit to the firm, and ultimately our client base, please submit a brief e-mail to me with a cc to [Redacted] expressing your interest in the firm covering your cost of membership.

In the event that you would like to retain your ABA membership at personal cost, the ABA will be sending member profiles and dues invoices to each individual at the address they have on record beginning next week. Please update that information as appropriate and return directly to the ABA. If you are not currently a member of the ABA but would like to become a member, you may go online to www.abanet.org for application and payment information.

Two of the last three ABA presidents were from K&L Gates.

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We wonder what “active involvement” entails, and whether it can be done while making billable hours requirements. Is it that K&L Gates wants to have “zero” attorneys as members of the ABA? Because that is what is going to happen. Why would any attorney pay those dues out of pocket? And really, why would any attorney jump through the hoop of writing an earnest email begging the firm to do the right thing?

We assume K&L Gates associates have a sense of pride and will not feel the need to prove their commitment to middle management that is clearly only looking to squeeze extra profits per partner out of the masses.

Quite simply: if you cannot support membership in organization that is supposed to raise the quality of the legal profession; if you cannot contribute to your employees retirement situation; if you cannot afford reasonable toilet paper in your own bathrooms, then you are not in a position to “grow aggressively” during an economic downturn. Stop adding lawyers instead of taking care of the ones you already have.

Earlier: Crisis for some firms, opportunity for others

Law Firm Merger Mania: K&L Gates and Kennedy Covington Make It Official