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If You Show Me Yours, I’ll Show You Mine
(Or: A casual comparison of severance packages.)

severance.jpgWhen non-lawyers ask what’s happening in the world of law these days (i.e., what ATL is covering), our first response is usually one word: layoffs. It’s been a dominant theme in our coverage since the fall. Non-lawyers are often sympathetic, but couch their sympathy with, “Well, lawyers get six months of severance, right? Getting fired is like a paid vacation for them.”

Well, not exactly. According to one of Justin’s surveys on the slowdown, three months is actually the market rate for lawyer severance packages at large law firms. That time goes by surprisingly fast in this economy. For many of those laid off in the fall, severance checks will soon stop coming. What’s your plan after severance stops?

One tipster wrote in asking us for more details on the going rates on severance:

Could you somehow publicly give honorable mention to the firms who are treating their associates fairly and with the respect they deserve? It would also be tremendous information for those of us who are in a precarious position. At least we would know what would be reasonable to request if and when we are laid off.

Earlier today, we gave props to McKee Nelson for handling layoffs well (or at least as well as such things can be handled). But not every firm uses lube is kinder and gentler in the dismissal department.

We’ve prepared a (very informal) round-up of the severance packages at various firms, self-reported by affected lawyers. Check out the numbers, after the jump.

Some important explanatory notes:

1. As noted, this survey is informal (and far from rigorous). The severance package information was self-reported by the dismissed attorneys; we generally have not verified it with official firm representatives (although we do have firm confirmation in a few cases, like McKee Nelson).

2. The information came from lawyers who were victims of forced attrition. Forced attrition encompasses acknowledged layoffs, stealth layoffs, performance-based dismissals, or any other departure from a firm in a less-than-totally-voluntary manner — even if the lawyer may have had to sign an agreement and release of claims making the leave-taking sound voluntary (e.g., a document stating that the departure “will be classified as a resignation,” a la Paul Hastings).

You may see on the list some firms that have not publicly admitted to conducting layoffs. We are not saying that these firms have conducted “layoffs” as such, but it would appear that they have asked at least some of their lawyers to leave. We take no position on how to characterize those departures; as we’ve previously opined, what constitutes a “layoff” may be in the eye of the beholder.

3. There were some conflicting reports for some firms. These are likely due to variations by office, department, seniority, timing (which round or wave the person was in), individual negotiation with the firm, etc.

We’ve tried to figure out and note the reasons for the conflicts, but some are irreconcilable. People at the same firm don’t always get the same deal — e.g., if one is a member of a protected class sitting on a potentially juicy cause of action against the firm, and the other is not.

In light of the foregoing, caveat lector. We emphasize once again the informal, crowdsourced, non-official nature of this survey.

If you have information to add, please email us (subject line: “Severance Watch”). We prefer email to posting in the comments because of the enhanced accountability and ability for us to ask follow up questions of you. We’ll include your information in the next round-up of severance packages. Thanks.

LAW FIRM SEVERANCE PACKAGES FOR ATTORNEYS
Last updated: February 23, 2009

FirmSeverance / Notice
Arent FoxNone (3 months notice)
Baker & McKenzie3 months
Baker Botts3 months
Bilzin Sumberg2 months
Bingham McCutchen3 months
Blank Rome1 month
Bracewell & Giuliani2 months
Cadwalader Wickersham & Taft 3 months (1st round); 5 months (2nd round)
Cooley Godward Kronish3 months
Cox Castle & Nicholson6 weeks
Davis Polk & WardwellNone (3 months notice)
Dechert LLP3 months
Dewey & LeBoeuf3 months
DLA Piper2 months Varies (2-3 months)
Fish & Richardson2 months
Fried Frank3 months
Goodwin Procter3 months
Greenberg Traurig2 months
Hogan & HartsonNone (3 months notice)
Jones DayNone (3 months notice)
Katten Muchin RosenmanNone (3 months notice)
Kaye ScholerNone (3-4 months notice)
Kirkland & EllisNone (3 months notice)
Latham & Watkins3 months
Linklaters3 months Varies (3-5 months)
Loeb & Loeb2 months
Mayer Brown3 months
McDermott Will & Emery3 months
McKee Nelson4 months
Milbank3 months Varies (1-3 months)
Morrison Foerster2 months Varies (2-6 months)
Morgan Lewis2 months
O’Melveny & Myers2 months
Orrick Herrington & Sutcliffe5 months (1st round of layoffs; 2 months thereafter)
Paul Hastings3 months
Pillsbury2 months
Reed Smith2 months
Schiff Hardin3 months
Shearman & Sterling1 month Varies (1-2 months)
Sonnenschein Nath & Rosenthal2.5 months None (2.5 months notice)
Squire Sanders3 months
Sutherland3 months
Troutman Sanders3 months
White & Case3 months
Willkie Farr & Gallagher4 months Varies (4-6 months)
Wilson Sonsini2 months 3 months
WinsteadNone (1 month notice)
WolfBlock2 months

Earlier: Associate Life Survey: How Would You Manage the Slowdown?

Comments

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1 Posted by guest | Permalink Friday, February 20, 2009 2:22 PM

this list is incomplete - i was one of the first on my block to get laid off (back in April 2008) by a big firm not on this list. i was offered 2 months severance, but talked them into an extra half month to quietly sign their bullshit severance agreement.

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2 Posted by guest | Permalink Friday, February 20, 2009 2:24 PM

2:22 - You should email ATL (especially since you have nothing to fear / lose at this point).

3 Posted by Larry | Permalink Friday, February 20, 2009 2:26 PM

You stay classy, Shearman and Sterling!

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4 Posted by guest | Permalink Friday, February 20, 2009 2:26 PM

Which firm was it, #2?

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5 Posted by guest | Permalink Friday, February 20, 2009 2:27 PM

How about a post on where I can find a job now--with so many lawyers canned, I am screwed.

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6 Posted by guest | Permalink Friday, February 20, 2009 2:27 PM

So the rumors are true:

"Davis Polk & Wardwell -- None (3 months notice)"

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7 Posted by guest | Permalink Friday, February 20, 2009 2:32 PM

5 - Try Canada:

http://abovethelaw.com/2009/02/lawyers_move_to_canada.php

Or start your own firm:

http://abovethelaw.com/2009/02/cant_find_work_start_your_own.php

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8 Posted by guest | Permalink Friday, February 20, 2009 2:33 PM

What about Faegre & Benson??

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9 Posted by guest | Permalink Friday, February 20, 2009 2:33 PM

Yeah #2, who did you - work - for?

A. Powers

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10 Posted by guest | Permalink Friday, February 20, 2009 2:34 PM

what about foley?

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11 Posted by guest | Permalink Friday, February 20, 2009 2:34 PM

what about foley?

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12 Posted by guest | Permalink Friday, February 20, 2009 2:35 PM

Proskauer Rose---2 months

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13 Posted by guest | Permalink Friday, February 20, 2009 2:35 PM

So it seems like three months is "market," two months is "respectable," and under two months is "pathetic."

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14 Posted by guest | Permalink Friday, February 20, 2009 2:36 PM

The list is bull. There haven't been any layoffs here at DPW (yet), stealth or otherwise. That said, cap markets is super slow and people are nervous.

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15 Posted by guest | Permalink Friday, February 20, 2009 2:36 PM

CWT gave 5 months on the 2nd round but Lat hates CWT....

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16 Posted by guest | Permalink Friday, February 20, 2009 2:36 PM

linklaters: 5 months for people considered "redundancies", 3 months for those considered "fired"

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17 Posted by guest | Permalink Friday, February 20, 2009 2:40 PM

14 - I have a friend who was asked to leave Davis for performance reasons (and got three months of advance notice).

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18 Posted by guest | Permalink Friday, February 20, 2009 2:40 PM

What about Squire Sanders Bratislava?

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19 Posted by guest | Permalink Friday, February 20, 2009 2:40 PM

Good journalistic legwork, but...

I thought it was reported that Cadwalader gave 6 months. It also sounded like Thacher Proffitt may have given around 6 months, at least in their initial round in earlier 2008.

3 months = Half-Cadwalader (or Half-Thacher)

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20 Posted by guest | Permalink Friday, February 20, 2009 2:42 PM

CWT gave six months

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21 Posted by guest | Permalink Friday, February 20, 2009 2:43 PM

CWT is having a half price sale on NY 05 female associates. Get em while they're hot.

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22 Posted by guest | Permalink Friday, February 20, 2009 2:43 PM

If Cravath does layoffs...

Half-Cadwalader?

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23 Posted by guest | Permalink Friday, February 20, 2009 2:44 PM

Also, I didn't know Orrick had more layoffs post-November (though I could see someone on a winter review cycle getting three months' notice and two months' severance- I know someone who got tagged that way on a spring review).

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24 Posted by guest | Permalink Friday, February 20, 2009 2:45 PM

15 - Because CWT screwed Lat over on the round 2 layoffs story by promising him an exclusive, to get him to hold off on his reporting, but then giving it to the WSJ.

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25 Posted by guest | Permalink Friday, February 20, 2009 2:47 PM

Cooley gave 1 month of severance for every year of employment with a minimum of 3 months severance and a maximum of 6 months severance.

Much better than market for these sorts of things I suppose.

How funny to go from discussing market for bonuses to market for severance

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26 Posted by guest | Permalink Friday, February 20, 2009 2:47 PM

15 / 20 - Looks like CWT has been added. It was three months in the first round and five months in the second round:

http://www.abovethelaw.com/2008/01/nationwide_layoff_watch_the_la.php

http://www.abovethelaw.com/2008/07/cadwalader_is_a_disaster_zone.php

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27 Posted by guest | Permalink Friday, February 20, 2009 2:48 PM

What is wrong with a firm asking its weaker lawyers to leave?

Is a firm obligated to keep on deadweight? In this economy?

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28 Posted by guest | Permalink Friday, February 20, 2009 2:49 PM

Any severance is good. (The more the better, of course.) I was at Thelen, where everyone got laid off, and no severance.

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29 Posted by guest | Permalink Friday, February 20, 2009 2:50 PM

25 - i'm with you. this is very depressing. less than two years ago we were shouting NY to 190!

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30 Posted by guest | Permalink Friday, February 20, 2009 2:50 PM

If BigLaw associates are truly fungible, then these terminations CANNOT be performance based.

31 Posted by AcelaBob | Permalink Friday, February 20, 2009 2:52 PM

I'm not telling you how much severance you get. Unless you happen to be on the Acela with me tonight.

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32 Posted by guest | Permalink Friday, February 20, 2009 2:53 PM

Are H1-B visa associates (i.e., foreigners) a protected class when it comes to determining whom to layoff in a law firm?

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33 Posted by guest | Permalink Friday, February 20, 2009 2:53 PM

This survey has some gaps and a few errors. But the perfect shouldn't be the enemy of the good.

Thanks, Kash and Lat.

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34 Posted by guest | Permalink Friday, February 20, 2009 2:55 PM

Everyone is screwed. Even if you don't lose your job, raises/bonuses are going to be pitiful going forward, and real wages (yes even for lawyers) are going to decay with either inflation or deflation.

You think I-bankers (assuming any survive long enough to pay legal bills) are going to have their lawyers making more than they make?

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35 Posted by guest | Permalink Friday, February 20, 2009 2:56 PM

Please update the chart to reflect Heller at -6 weeks

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36 Posted by guest | Permalink Friday, February 20, 2009 2:56 PM

Is this an iPhone app? I would like to read this in my van down by the river.

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37 Posted by guest | Permalink Friday, February 20, 2009 2:57 PM

Please don't post additions / corrections in the comments:

"If you have information to add, please email us (subject line: "Severance Watch"). We prefer email to posting in the comments because of the enhanced accountability and ability for us to ask follow up questions of you. We'll include your information in the next round-up of severance packages. Thanks."

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38 Posted by guest | Permalink Friday, February 20, 2009 3:00 PM

"CWT is having a half price sale on NY 05 female associates. Get em while they're hot."

Lies! None of them are hot.

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39 Posted by guest | Permalink Friday, February 20, 2009 3:02 PM

14 - You really need to go drinking more with your colleagues.

I'm not at Davis Polk, but even I know about the people who have been "asked to leave" (not laid off, just politely asked to leave, in that oh-so-genteel DPW manner).

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40 Posted by guest | Permalink Friday, February 20, 2009 3:02 PM

Once again, Shearman sets the market bottom. What a disappointment.

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41 Posted by guest | Permalink Friday, February 20, 2009 3:05 PM

who in this time of massive layoffs can possibly be a protected class? not a lawyer just retired and love reading your blog.

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42 Posted by guest | Permalink Friday, February 20, 2009 3:05 PM

32- No, I don't think so. I know of H-1B holders who have been terminated.

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43 Posted by guest | Permalink Friday, February 20, 2009 3:07 PM

Protected class = A minority female who was sexually harassed by a senior partner of the firm (and perhaps has evidence, like incriminating emails, to back up her story).

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44 Posted by guest | Permalink Friday, February 20, 2009 3:08 PM

Good job and thank you Kash and Lat. If anybody with an offer ANYWHERE else is deciding among that and Shearman, 1 month severance (in my mind, I'm equating notice with severance) and a nice middle finger out the door in the form of a merit based press release should give you guidance.

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45 Posted by guest | Permalink Friday, February 20, 2009 3:08 PM

32, you also need to be "sitting on a potentially juicy cause of action against the firm."

Then you can negotiate with the firm for a better deal (in exchange for releasing whatever claims you might have against them).

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46 Posted by guest | Permalink Friday, February 20, 2009 3:09 PM

Can you distinguish between generous severance -- i.e. you don't have to show up to work and get your paycheck -- from basically just giving you notice you are leaving in three months? I know people who have been laid off and they still have to work those three months and often get the worst assignments and weekend work. Obviously the latter is better than no pay and an immediate end to their employment but not as good as three months pay with no work (and for some people two paychecks if they get a new job.)

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47 Posted by guest | Permalink Friday, February 20, 2009 3:10 PM

Anyone know how much time the Cahill people got?

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48 Posted by guest | Permalink Friday, February 20, 2009 3:11 PM

46 - I think the table does that. Look at the entries for Davis and Katten.

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49 Posted by guest | Permalink Friday, February 20, 2009 3:11 PM

Even with incriminating emails partners in big firms think sexual harassment is their birthright.

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50 Posted by guest | Permalink Friday, February 20, 2009 3:12 PM

This confirms layoffs at Willkie. So that is why all those people disappeared. Generous package, though.

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51 Posted by guest | Permalink Friday, February 20, 2009 3:13 PM

Clifford Chance - 3 months.

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52 Posted by guest | Permalink Friday, February 20, 2009 3:15 PM

Comment removed by moderator.

53 Posted by Management Committee | Permalink Friday, February 20, 2009 3:16 PM

The Management Committee would like to thank you for the convenient aggregated list of severance so that we may know exactly how little to offer our redundencies. Cheers!

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54 Posted by guest | Permalink Friday, February 20, 2009 3:18 PM

50: Do you work at WFG? All what people?

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55 Posted by guest | Permalink Friday, February 20, 2009 3:19 PM

Eugene Volokh,

Do you like reading about severance packages and other firm statistics? Well, did you know that the University of Chicago Law School has the largest collection of law firm data in the world?

And if you accept the deanship here at the nation's most underrated overrated law school, you'll be able to turn the internet back on and access the data. So act now!

Sincerely,

The University of Chicago Law School

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56 Posted by guest | Permalink Friday, February 20, 2009 3:21 PM

A lot are being let go & not included in the so called layoff numbers, but are told the firm is downsizing. Given so called agreements to sign off on. Some firms are not being honest with their numbers.

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57 Posted by guest | Permalink Friday, February 20, 2009 3:25 PM

Cahill gave three months' severance.

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58 Posted by guest | Permalink Friday, February 20, 2009 3:26 PM

is severance guaranteed? or if you find a new job do the payments stop? 2 months guaranteed could be better than 5 months conditional, if you happen to land someplace else.

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59 Posted by guest | Permalink Friday, February 20, 2009 3:26 PM

46 - if there's enough work to keep them busy on weekends, why are these people getting laid off?

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60 Posted by guest | Permalink Friday, February 20, 2009 3:36 PM

Note the various changes that Kash and Lat have been making to the table (refresh your browser to see the latest version).

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61 Posted by guest | Permalink Friday, February 20, 2009 3:37 PM

Latham gave Half-Cadwaladers. An apparent Latham partner posted on an earlier thread that he thought that was ungenerous of the firm and that severance should have been 6 months.

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62 Posted by guest | Permalink Friday, February 20, 2009 3:40 PM

Is Shearman having layoffs? I heard for the first time yesterday that they were having firings based on "performance" even in litigation. True?

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63 Posted by guest | Permalink Friday, February 20, 2009 3:41 PM

Pray you get laid off now. As recession turns into depression these deals will disappear.

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64 Posted by guest | Permalink Friday, February 20, 2009 3:41 PM

Is Shearman having layoffs? I heard for the first time yesterday that they were having firings based on "performance" even in litigation. True?

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65 Posted by guest | Permalink Friday, February 20, 2009 3:41 PM

What did Dickstein give those they laid off?

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66 Posted by guest | Permalink Friday, February 20, 2009 3:42 PM

I thought wilson sonsini gave more than two months? Didn't they say in a release it was weekly based on seniority? Or was that for staff and attorneys got two months? Cheap...

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67 Posted by guest | Permalink Friday, February 20, 2009 3:43 PM

Is Shearman having layoffs? I heard for the first time yesterday that they were having firings based on "performance" even in litigation. True?

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68 Posted by guest | Permalink Friday, February 20, 2009 3:45 PM

Great post. 31, lol.

As an employment attorney, I recommend always asking for more severance, especially if you are (1) old (over 40); (2) a female (especially a recently pregnant female); or (3) a minority. You should also negotiate if you have recently returned from FMLA (or state equivalent) leave, or have recently reported illegal firm activity (or plan to). Even if you do not fit within these categories, the firm is not going to revoke its severance offer if you ask for more.

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69 Posted by guest | Permalink Friday, February 20, 2009 3:49 PM

New York to three months!

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70 Posted by guest | Permalink Friday, February 20, 2009 3:53 PM

Cahill = 3 months severance.

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71 Posted by guest | Permalink Friday, February 20, 2009 3:53 PM

Stroock has laid off at least 30 associates since the Fall. They've provided 3 months.

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72 Posted by guest | Permalink Friday, February 20, 2009 4:03 PM

Forgive the stupid question but I just wanted to know if I'm reading this correctly. CWT (second round) will continue paying you for FIVE MONTHS if you're laid off? Even if you get another job a week after getting laid off (to me that's what "severance" as opposed to "notice" means)?

Seems too good to be true from such a bunch of hardcases.

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73 Posted by guest | Permalink Friday, February 20, 2009 4:06 PM

#68, what if you already signed the agreement in exchange for a puny severance, and then you found out that others got much more? Non-lawyer here, obviously.

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74 Posted by guest | Permalink Friday, February 20, 2009 4:07 PM

king & spalding has given a number of layoff people less than a month's severance - i think that is how they boost their PPP - they rock !

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75 Posted by guest | Permalink Friday, February 20, 2009 4:07 PM

Where is Marin?!!!???!

Marin, start your own blog. You have as much talent as Lat and you crap talent that craps talent that is better than MysTTTal.

It is time Marin. If these folks at ATL can't give you a full-time gig, do it yourself. You would have a tipster network in no-time and advertisement would follow.

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76 Posted by guest | Permalink Friday, February 20, 2009 4:08 PM

K&L Gates East Coast: less than 2 weeks notice, 2 months severance.

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77 Posted by guest | Permalink Friday, February 20, 2009 4:14 PM

#68, what if you already signed the agreement in exchange for a puny severance, and then you found out that others got much more? Non-lawyer here, obviously.

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78 Posted by guest | Permalink Friday, February 20, 2009 4:26 PM

How did the titans of Atlanta escape the notoriety of the layoff list? I know A&B has had at least some associate layoffs plus 24 staff. And 75 indicates K&S has as well. Are their propaganda machines for effective at those firms, or does ATL just feel sorry for them because they already carry the burden of being headquartered in that Gawd-awful city?

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79 Posted by guest | Permalink Friday, February 20, 2009 4:27 PM

@67 -- true there were layoff in litigation -- at least 2 -- and elsewhere. S&S is firing.

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80 Posted by guest | Permalink Friday, February 20, 2009 4:36 PM

I got laid off in October (big regional firm - 6 weeks severance). Got a new better job in 3 weeks by talking to everyone I know the moment I got the bad news. Not everyone laid off is a "weaker lawyer". You might just be junior in a department where the partners don't have enough work to do themselves. Look at small "boutique firms" as they are getting the clients leaving big firms.

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81 Posted by guest | Permalink Friday, February 20, 2009 4:38 PM

Dechert did it two ways (i) 3 months OR until you find a new job (perverse incentive to NOT find job) or (ii) 3 months notice, no sev.

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82 Posted by guest | Permalink Friday, February 20, 2009 4:40 PM

73/77 - I don't think you would have much of a leg to stand on. You may not be able to bring a claim at all, unless your potential claim for discrimination/disparate severance could be considered a future claim, which you typically can't release under the nondiscrimination statutes.

Even if you could bring a claim, if others were "offered" more then maybe you could make out some sort of discrimination claim, but those individuals would have to be identically situated to you (same years of service, position, etc.). Then you have that pesky burden of proving you were discriminated against on the basis of your ___.

If they "received" more than you, and they're similarly situated, then perhaps it's because they asked for more and you didn't. You also have the problem that severance agreements are supposed to be confidential, and if you're going to have to identify those individuals who shared their severance information with you in order to make out a claim, thus you put those individuals' severance at risk (because the Company could revoke it due to their breach of confidentiality).

In any event, it would be a tough claim to make, but if you made it, the Company might cave and just throw a few more bucks at you to go away, which is exactly what you wanted in the first place.

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83 Posted by guest | Permalink Friday, February 20, 2009 4:42 PM

35 here. To clarify, my comment of "Heller -6 weeks" doesn't mean "6 weeks," it means "negative 6 weeks." HTH

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84 Posted by guest | Permalink Friday, February 20, 2009 4:44 PM

I think it's rather disingenuous to include firms that haven't done public or stealth layoffs. A random layoff here and there doesn't mean you should put a firm on this list. Bingham McCutchen and DPW should at least have a little asterik next to their name that says they haven't conducted public or stealth layoffs as far as ATL knows.

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85 Posted by guest | Permalink Friday, February 20, 2009 4:45 PM

Hey 14 - I'll confirm the DPW layoffs for you - stop by my office sometime before March 31. Or look at the Monday morning email on April 4 and look how many "departure" notices give a personal email address only and no forwarding job info.

- Gettin' FIG-y with it.

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86 Posted by guest | Permalink Friday, February 20, 2009 4:49 PM

Comment removed by moderator.

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87 Posted by guest | Permalink Friday, February 20, 2009 5:00 PM

Have it from good authority that Holland & Knight = 1 month.

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88 Posted by guest | Permalink Friday, February 20, 2009 5:02 PM

I'm not an employment attorney. Are these releases enforceable? You can't bring ANY claims? Talk about a bind for those laid off attorneys who need some cash now.

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89 Posted by guest | Permalink Friday, February 20, 2009 5:08 PM

88, yes, a well-crafted release typically releases all claims - there are some claims that can't be released as a matter of law, such as wage claims under the FLSA, and future claims. For instance, if you get laid off from Wal-Mart, you can't release a claim against them for 10 years down the road when you have a slip-and-fall on the pet food aisle.

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90 Posted by guest | Permalink Friday, February 20, 2009 5:14 PM

89. how often will they change the wording in an agreement if asked, or do they?

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91 Posted by guest | Permalink Friday, February 20, 2009 5:15 PM

#82, thanks so much. No individual told me how much they received, since it's not to be discussed. I read it in an article here. I felt hurt that everyone here believed that a certain firm paid everyone a certain amount, but I just got clarification that staff packages were completely different. Thanks so much, #82. I don't feel hurt anymore. This blog is about lawyers, after all, not staff!

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92 Posted by guest | Permalink Friday, February 20, 2009 5:20 PM

90, well, understandably, I doubt they would agree not require you to release certain claims, because that would tip them off that you are potentially going to bring those claims, then they have basically paid you a severance for nothing, you dig?

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93 Posted by guest | Permalink Friday, February 20, 2009 5:23 PM

What the hell? Tubby goes off to fat camp - er, Las Vegas - and this site suddenly becomes full of useful information.

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94 Posted by guest | Permalink Friday, February 20, 2009 5:34 PM

why haven't the stroock layoffs been reported by ATL????

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95 Posted by guest | Permalink Friday, February 20, 2009 5:46 PM

84, see the explanatory note:

"You may see below the names of firms that have not conducted layoffs (at least not public layoffs). We are NOT saying that these firms have conducted 'layoffs' as such, but it would appear that they have asked at least some of their lawyers to leave -- presumably for performance-based reasons, but short of being fired immediately and for cause."

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96 Posted by guest | Permalink Friday, February 20, 2009 5:49 PM

94 - Maybe because you haven't emailed ATL about them?

tips at abovethelaw dot com

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97 Posted by guest | Permalink Friday, February 20, 2009 5:49 PM

How does one negotiate for severance. What if the firm doesn't want to give you any, or want to give you less than you'd like. What would you say? I want more? What's the leverage?

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98 Posted by guest | Permalink Friday, February 20, 2009 5:52 PM

92 got it. what do you know about employment imformation releases? are they wise to sign?

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99 Posted by guest | Permalink Friday, February 20, 2009 5:53 PM

91, sorry to say but law firms never give staff decent severance packages -- they reserve that for attorneys and top administrative people (as if law firms ever reduce the bloated number of HR types)!

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100 Posted by guest | Permalink Friday, February 20, 2009 6:11 PM

Simpson Thacher - no severance, 1 month notice

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101 Posted by guest | Permalink Friday, February 20, 2009 6:13 PM

I guess I don't understand what "no" severance means. So, if a lawyer is told he has 3 months, 6 months, whatever, to find a job, and he gets to keep his office even if he's not working on anything, he's not receiving a paycheck? I find it hard to believe that people who are told they have 6 months to find a job, willingly come into the office for no pay.

Please fill me in.

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102 Posted by guest | Permalink Friday, February 20, 2009 6:19 PM

Thanks so much, #99. You are very kind. Just so everyone knows, secretaries and paralegals have been glued to Above the Law these past few months.

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103 Posted by guest | Permalink Friday, February 20, 2009 6:19 PM

101 - Generally you DO have to work for the whole time in one of these "notice but no severance" situations.

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104 Posted by guest | Permalink Friday, February 20, 2009 6:24 PM

Thanks, 103. I work at one of the firms listed as "no severance," but I'm pretty sure affected attorneys are given the word, told not to accept any new work, and often don't seem to come around much after they've been told to go. Maybe the rumor mill is wrong, but word is that the fired attorneys collect paychecks the entire time. If someone lingers too long, it's been reported that their paychecks stop coming at that point.

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105 Posted by guest | Permalink Friday, February 20, 2009 6:24 PM

If you want to know what a typical severance agreement / release of claims looks like, just take a look at the Paul Hastings document:

http://abovethelaw.com/2008/05/paul_hastings_farewell_email_a.php#more

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106 Posted by guest | Permalink Friday, February 20, 2009 6:28 PM

Kashmir and David,

How to you conclude that because a firm has not made layoffs, such terminations are performance-based? Are you saying that all economy-based layoffs are made public?

Shouldn't there be a strong presumption of economy-based terminations in this environment?

But this paragraph of yours was largely incoherent anyway:

"You may see below the names of firms that have not conducted layoffs (at least not public layoffs). We are NOT saying that these firms have conducted "layoffs" as such, but it would appear that they have asked at least some of their lawyers to leave -- presumably for performance-based reasons, but short of being fired immediately and for cause."

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107 Posted by guest | Permalink Friday, February 20, 2009 6:30 PM

103 / 104 - This varies from firm to firm. There is no hard and fast rule.

So much of this is individualized, both by firm and by individual attorney. And it tends to be shrouded in secrecy, with people required to sign agreements with non-disclosure / non-disparagement provisions.

That is why it is very difficult to do a chart like this perfectly. Inconsistencies will abound.

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108 Posted by guest | Permalink Friday, February 20, 2009 6:32 PM

Simpson Thacher < half-Thacher Proffitt?

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109 Posted by guest | Permalink Friday, February 20, 2009 6:35 PM

Correction to Kashmir and David post (#106) -

First sentence should read:

How do you conclude that because a firm has not made layoffs PUBLIC, such terminations are performance-based?

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110 Posted by guest | Permalink Friday, February 20, 2009 6:46 PM

97, the leverage, I hate to say it, could simply be the color of your skin, your age, or your gender. You could simply start with, "you know, it's hard for a fella (or a dame) to find a job these days, and this severance is not going to last very long. I've got kids to feed. Etc." In so many words. They'll get the idea. If you have a legitimate beef and you want to play hardball, then I would mention the beef. Firms are so risk averse that they'll be willing to throw you a couple of extra large, or maybe even an extra month or so, for you not to bring the pain (and publicity) of a potential discrimination lawsuit upon upon them.

111 Posted by alonzo | Permalink Friday, February 20, 2009 7:00 PM

Severence package? Stop your bitchin' people. I say any severance package you can walk away from is a good one. My severance package included about 4 gunmen, 100 rounds of 5.56mm, and about 50 rounds of 9mm. I'd like to see some of you pansies deal with dat.

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112 Posted by guest | Permalink Friday, February 20, 2009 7:01 PM

I was laid off while 8 months pregnant. The 'performance based' layoff included comments by the partner such as "mothers always want to have jobs where they can spend more time with their families" etc. They told me they would pay me thru maternity leave (approx 4 months from layoff date). I hired an employment lawyer and got 3 more months' severance.

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113 Posted by guest | Permalink Friday, February 20, 2009 7:02 PM

106 / 109 - You might like the revised paragraph better:

"You may see on the list some firms that have not publicly admitted to conducting layoffs. We are not saying that these firms have conducted "layoffs" as such, but it would appear that they have asked at least some of their lawyers to leave. We take no position on how to characterize those departures; as we've previously opined, what constitutes a 'layoff' may be in the eye of the beholder."

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114 Posted by guest | Permalink Friday, February 20, 2009 7:06 PM

This list is a thankless task for poor Kash and Lat. They get criticized from both sides.

1. You have people like 84, who say that a firm should not be on the list unless it has conducted public, openly acknowledged layoffs.

2. And then you have people like 106 / 109, who say that firms that have NOT admitted to layoffs, instead calling dismissals "performance based," should be called out on that.

I wouldn't be surprised if Kash and Lat decide to stop doing this list because it is so impossible to figure out who should belong on it.

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115 Posted by guest | Permalink Friday, February 20, 2009 7:32 PM

112 : What was your net gain on that extra 3 months severance after accounting for the costs of your employment lawyer?

Anyway -- good job on that. Getting laid off 8 months pregnant must be an extra terrible experience.

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116 Posted by guest | Permalink Friday, February 20, 2009 7:37 PM

114,

You have misunderstood my post. (Your fault or mine.) My quibble was with Kashmir and David drawing the conclusion that because a firm had not made layoffs public, that the reported termination was "presumably for performance-based reasons."

If anything there should be a strong presumption that any termination in BigLaw these days is necessitated (or caused) by the economic downturn. There are a number of reasons why this should be so:

(1) The extent and depth of the layoffs throughout BigLaw. Have so many high-achieving attorneys suddenly become poor performers?

(2) The widely reported decline in available billable hours at firms.

(3) The widespread opinion that associates, especially juniors and mid-levels, are fungible.

(4) The improbability that BigLaw associates, having been top performers throughout their lives before entering a firm, would be poor performers at a firm. I'm not saying it's impossible, it's just not probable.

Apparently Kashmir and David agreed with my criticism and have revised their report.

84's point is nonsensical. The core of this report is severance packages, however arising.

106/109

117 Posted by Judge Smales | Permalink Friday, February 20, 2009 7:37 PM

you'll get nothing and like it

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118 Posted by guest | Permalink Friday, February 20, 2009 7:41 PM

112-

Do you think it is fair that you receive 7 months severance, along with the blessings of having your own child, while others are receiving 3 months or worse?

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119 Posted by guest | Permalink Friday, February 20, 2009 7:43 PM

MoFo also gave everyone 2 months notice, on top of 2-6 months of severance.

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120 Posted by guest | Permalink Friday, February 20, 2009 7:53 PM

My lawyer only cost $1500. Lump sum payment of about 60K (3 months plus accrued vacation). Damn straight I think it is fair, 118. Maternity leave is something you accrue while working. Plus this was a 'performance based' layoff a while back - not based on the economy. The HR people knew they were screwed for firing a pregnant person (I might add that my reviews were positive before becoming pregnant).

- 112

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121 Posted by guest | Permalink Friday, February 20, 2009 7:54 PM

Kashmir and David,

I think the revision is an improvement (although I think even the agnosticism might be a little unwarranted, see my reply to 114).

All in all a very good job on the story (and a good job done this week). The story should be useful to many (although I guess another quibble I have is your decreeing 3 months as "the market"; might have waited to get more info as a number of firms seem to be paying more, unlike with the Skadden bonus outlier) and was a long time coming. I bet it has served as an unexpected source of additional layoff (versus severance) news.

It might be interesting to consider incorporating into one of your severance stories a few sentences on what these BigLaw attorneys' neighbors in the finance world are receiving as severance. I'm hearing it is significantly higher than in law.

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122 Posted by guest | Permalink Friday, February 20, 2009 7:59 PM

Davis Polk is only paying half-Cadwaladers?

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123 Posted by guest | Permalink Friday, February 20, 2009 8:14 PM

What about Faegre severance? The word is that the attorneys they fired are being paid through the end of May (making their severance package slightly above "market").

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124 Posted by guest | Permalink Friday, February 20, 2009 8:21 PM

120, Girl you should have gone for more. Fuck those fuckers.

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125 Posted by guest | Permalink Friday, February 20, 2009 8:28 PM

Winston is giving 5 months...

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126 Posted by guest | Permalink Friday, February 20, 2009 8:36 PM

Simpson Thacher has been doing performance-related dismissals lately. But I think that the notice period is longer than one month.

Can someone who actually knows the answer email Kash and Lat?

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127 Posted by guest | Permalink Friday, February 20, 2009 8:40 PM

When does Simpson Thacher (a) determine associate bonuse, and (b) pay them out?

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128 Posted by guest | Permalink Friday, February 20, 2009 9:09 PM

Re: Is Shearman laying off? The answer is absolutely yes. And it extends to litigation. There is a rumor that litigation associates are being sacrificed to keep M&A lawyers around. The idea is to put the deal lawyers on the lit doc review while the firm waits out the downturn.

Oh, and if you are looking for leverage, here's a suggestion, especially for mid-levels: it helps to have matters where only you know what is going on. Partners faced with the prospect of telling their clients that they really aren't sure of all the details is made worse when they have to explain that they fired the only person who did know what what was going on. Sure it sounds crazy. What firm is so stupid to fire someone for "performance" without checking with the partners she is working for before they tell the associate to pack up the desk? Shearman is that stupid.

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129 Posted by guest | Permalink Friday, February 20, 2009 9:18 PM

Firms listed as paying "None" in terms of severance, but providing notice before you lose your job, are the ones engaged in "stealth layoffs."

What they are doing is really no different from what other firms are doing more openly. But they prefer to sacrifice their associates to preserve their own reputations as firms.

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130 Posted by guest | Permalink Friday, February 20, 2009 9:37 PM

McDermott is more like 3 month's notice versus a severance because they expect you to come in and work.

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131 Posted by guest | Permalink Friday, February 20, 2009 9:40 PM

125, From what I've heard, Winston is giving only 3 months (at least to associates).

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132 Posted by guest | Permalink Friday, February 20, 2009 9:40 PM

128 -- that's what Shearman did during the 2001-2002 recession. Put corporate lawyers to lit doc review and fired lit associates. Lit has no political power over there.

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133 Posted by guest | Permalink Friday, February 20, 2009 9:53 PM

Holland & Knight is 2 months for attorneys, staff got a week for each year of service to the firm (probably to a 2-month limit)

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134 Posted by guest | Permalink Friday, February 20, 2009 11:22 PM

I have heard that Schulte has been doing stealth firings (supposedly 40 in December alone). They are giving 2-3 months severance.

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135 Posted by guest | Permalink Friday, February 20, 2009 11:22 PM

I have heard that Schulte has been doing stealth firings (supposedly 40 in December alone). They are giving 2-3 months severance.

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136 Posted by guest | Permalink Friday, February 20, 2009 11:24 PM

What about paycuts at Holland and Knight, 133?

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137 Posted by guest | Permalink Friday, February 20, 2009 11:34 PM

O'Melveny & Myers is paying only 2 months? I'm surprised they're paying less than "market" for severance when they paid above-average bonuses this year, at least in non-NY offices. Has anyone here heard otherwise?

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138 Posted by guest | Permalink Saturday, February 21, 2009 12:34 AM

2 weeks.

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139 Posted by guest | Permalink Saturday, February 21, 2009 2:06 AM

Orrick is doing the majority of their layoffs through stealth firings. They just gave the (few) associates that were formally laid off five months severance so they would look good. Crafty bastards!

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140 Posted by guest | Permalink Saturday, February 21, 2009 8:08 AM

130 - That's not true on my end. At least to first years, MWE is giving 3 months severance, not notice. And they're giving laid off first years a public interest fellowship option until December.

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141 Posted by guest | Permalink Saturday, February 21, 2009 9:01 AM

78 is right. Atlanta has had its share of layoffs. A&B, Kilpatrick, and Sutherland have had substantial layoffs in the past months. Staff and attorneys.

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142 Posted by guest | Permalink Saturday, February 21, 2009 9:02 AM

78 is right. Atlanta has had its share of layoffs. A&B, Kilpatrick, and Sutherland have had substantial layoffs in the past months. Staff and attorneys.

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143 Posted by guest | Permalink Saturday, February 21, 2009 11:12 AM

Severance pay of any amount is a gift in most states. The employee above who manipulated the fact that SHE chose to have a baby in order to get more severance than everyone else just shows what a f---ed up society we are living in. She should not be given more than others just because she's pregnant, and no one should get more because of their race, etc. It's ridiculous and disgusting that people manipulate these issues to get themselves more money.

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144 Posted by guest | Permalink Saturday, February 21, 2009 11:27 AM

Let this be a lesson to you all in Philly- do not work at Blank Rome- one month is pathetic. That firm is definitely headed downhill and fast.

145 Posted by Al Czyrvik | Permalink Saturday, February 21, 2009 12:01 PM

I tell ya golf courses and cemeteries are the biggest wasters of prime real estate.

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146 Posted by guest | Permalink Saturday, February 21, 2009 1:19 PM

king & spalding offers layoff victims less than a months severance - or, you have to have sex with one of their older lesbian partners

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147 Posted by guest | Permalink Saturday, February 21, 2009 1:56 PM

"Not every firm uses lube"? So, we're talking about getting fucked in the ass here? Hey ATL, can we leave the homophobia to the jerk commenters?

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148 Posted by guest | Permalink Saturday, February 21, 2009 2:07 PM

147- why is that homophobic? have you ever tried not using lube?

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149 Posted by guest | Permalink Saturday, February 21, 2009 2:13 PM

So any comment referring to lack of lube is homophobic?

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150 Posted by guest | Permalink Saturday, February 21, 2009 2:24 PM

14, you have no idea what you are talking about at all. 84, no asterisked needed on DPW.

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151 Posted by guest | Permalink Saturday, February 21, 2009 2:33 PM

150 here: i mean no "asterisk" needed of course, before the grammarians get their knives out.

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152 Posted by guest | Permalink Saturday, February 21, 2009 3:13 PM

Quinn Emanuel =2 months.

153 Posted by Judge Smales | Permalink Saturday, February 21, 2009 3:49 PM

145 you're no gentleman

154 Posted by Al Czyrvik | Permalink Saturday, February 21, 2009 3:53 PM

153 - I'm no door knob either

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155 Posted by guest | Permalink Saturday, February 21, 2009 5:22 PM

147 might make more sense if a number of the writers weren't gay.

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156 Posted by guest | Permalink Saturday, February 21, 2009 6:02 PM

Bingham shouldn't be on this list. I appreciate the hard work and the research, but if the research has glaring and inexplicable errors in it it essentially has little to no use.

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157 Posted by guest | Permalink Saturday, February 21, 2009 6:23 PM

Forgot Holland and Knight who gave two months severance

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158 Posted by guest | Permalink Saturday, February 21, 2009 6:53 PM

Reliable source has Holland and Knight at 3 mos. so maybe a 2-3 mos. severance range should be their entry.

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159 Posted by guest | Permalink Saturday, February 21, 2009 6:55 PM

What about the paycuts at Holland and Knight? Any details?

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160 Posted by guest | Permalink Sunday, February 22, 2009 12:21 AM

112 - good for you!

118 - 112 is at a disadvantage from others who got laid off. How is 112 going to compete for work with people who aren't pregnant and about to give birth? Name a firm who would hire 112 next week.

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161 Posted by guest | Permalink Sunday, February 22, 2009 11:00 AM

if you get lesser of 3 months or when you find a job, why can't you keep collecting (i.e. double dip)?

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162 Posted by guest | Permalink Sunday, February 22, 2009 11:01 AM

if you get lesser of 3 months or when you find a job, why can't you keep collecting (i.e. double dip) even after you find a new job?

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163 Posted by guest | Permalink Sunday, February 22, 2009 12:33 PM

I agree #80. Baker & McKenzie laid off some GREAT lawyers in San Francisco/Palo Alto. A shame to see them go!

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164 Posted by guest | Permalink Sunday, February 22, 2009 2:18 PM

"The employee above who manipulated the fact that SHE chose to have a baby in order to get more severance than everyone else just shows what a f---ed up society we are living in."

Okay, let me get this straight. The lawyer in question was laid off while 8 months pregnant and, in the process, told that her performance was presumed to drop off b/c she would be a mother and that her layoff was linked to that presumption. Sounds to me as though her employer manipulated her parent-to-be status to screw her and she was smart enough to call them on it. They got out cheap with just a few months extra pay, if you ask me. Employers that moronic deserve to take even more of a hit.

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165 Posted by guest | Permalink Sunday, February 22, 2009 2:19 PM

120: I have strong feeling the same thing is going to happen to me soon as my firm is hurting and they're looking to lop heads (after giving everybody good reviews). Did you pay that $1500 up front or out of the 1/3 contingency fee? Was it a contingency fee arrangement?

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166 Posted by guest | Permalink Sunday, February 22, 2009 2:30 PM

Employment lawyers: I read that Paul Hastings release. Can you really just give up any discrimination claim for a few months' pay? That seems really onerous and seems to be a pretty cheap way for firms to avoid litigation because they have the laid-off employee by the you-know-whats. Is that kind of thing enforceable?

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167 Posted by guest | Permalink Sunday, February 22, 2009 7:29 PM

Yes, it's enforceable. You aren't entitled to any severance at all, so if they're giving you a few months pay for not doing any work, you're actually getting a lot of money in exchange for your release of claims. That would be sufficient consideration. Not to be rude, but why do you think the firms are getting off cheap? In that severance package, they're paying you more than many people earn in an entire year, and you aren't doing any work for it.

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168 Posted by guest | Permalink Sunday, February 22, 2009 10:36 PM

165 - I paid the employment lawyer a $1000 retainer and $500 afterwards. Good luck. Hopefully your firm won't fire the pregnant person in your case!

- 112/120

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169 Posted by guest | Permalink Sunday, February 22, 2009 11:44 PM

K&S has definitely had "stealth" layoffs but has given 3 months severance at least in a few cases

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170 Posted by guest | Permalink Sunday, February 22, 2009 11:50 PM

Any word on what Thacher Proffitt's severance plan was?

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171 Posted by guest | Permalink Monday, February 23, 2009 12:53 AM

Does anyone know number of associates laid off in Winston Chicago?

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172 Posted by guest | Permalink Monday, February 23, 2009 1:46 AM

Bryan Cave reportedly gave 12 weeks.

173 Posted by Grim Reaper | Permalink Monday, February 23, 2009 7:51 AM

105

Paul Hastings is being cute. By characterizing the termination as a "resignation" many states would automatically disqualify you from receiving unemployment.

174 Posted by Al Czyrvik | Permalink Monday, February 23, 2009 8:20 AM

173 - people now days, they don't want to be buried. Just ask my friend Wang - we just bought property behind the great wall. On the good side!

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175 Posted by guest | Permalink Monday, February 23, 2009 11:02 AM

169 - no doubt - but some have gotten less than a month

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176 Posted by guest | Permalink Monday, February 23, 2009 2:40 PM

167: If a person has a legitimate discrimination claim, the damages could greatly exceed a few month's salary (even at a large law firm). It just seems that signing away your right to sue for discrimination when most people aren't in the position to walk away without three months' severance is pretty tough.

Yeah, I know most people aren't as well-compensated or well-treated as large firm associates, but it doesn't mean you can't question the terms of your dismissal.

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177 Posted by guest | Permalink Monday, February 23, 2009 4:35 PM

Hmm. Hope the L&E folks at some of these big firms are reading this. I was a staffer that got cut despite good reviews - never a bad word about performance. They cut staffers off mid-week and offered the same one-month package to people who got bad reviews as the people who got good reviews. Seems like you would distinguish. Saying it was perfomance based afterwards, during severance negotiations, seems a little late.

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178 Posted by guest | Permalink Monday, February 23, 2009 5:31 PM

177 how many yrs were you with them?

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179 Posted by guest | Permalink Monday, February 23, 2009 5:39 PM

178 from 177 - 2 years - but it was a growing, mergered firm so many people have not been there long.

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180 Posted by guest | Permalink Monday, February 23, 2009 6:05 PM

a lot of firms are not telling their true numbers of layoffs. I think to save their image.

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181 Posted by guest | Permalink Wednesday, February 25, 2009 3:10 PM

NYC to 190!

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182 Posted by guest | Permalink Wednesday, February 25, 2009 4:14 PM

Cooley's severance was a minimum of 3 months and a maximum of 6 months depending on how many years you worked there.

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183 Posted by guest | Permalink Thursday, February 26, 2009 11:11 AM

Bingham absolutely should be on the list; but unfortunately they do not pay out much under stealth layoffs.

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