Tiered Payscale at Patton Boggs Leads to Associates Giving Back Money

Can you imagine having to pay your firm money over the next couple of months because the firm overcompensated you at the beginning of 2009? That is the situation facing a number of Patton Boggs associates over the next couple of weeks.

Patton Boggs has a three tiered associate compensation system. A firm spokesperson explained the details to Above the Law:

Patton Boggs has three base billable hour tiers for associates: 1650, 1800, and 1900. Associates on one of the lower tiers who reach a billable hour total of a higher tier are automatically paid the salary differential in the early part of the next year.

Associates who don’t make their hours are bumped down to one of the lower tiers. But the whole decision making process is done as part of the firm’s annual performance reviews, many of which haven’t taken place yet. A tipster explains the consternation among many Patton associates:

If an associate is bumped down, their salary will be bumped down accordingly in an amount to be determined by the firm (i.e. not the full published drop between the 2008 rate for [1900] and the 2008 rate for 1800 – as in some instances that could amount to up to 65K). So some don’t know if they will be bumped or, better yet, how much their salary will be for 2009. In general, people were pleased just to bump down as opposed to getting laid off or some other alternative.

But:

But here is the kicker – associates [won’t know if] they are being paid at the [1900] rate until after their review, if at that time they are bumped down to 1800, they have to PAY THE FIRM BACK the difference in pay for the first 2 months of 2009. The “overpayments” will be spread out over 4 paychecks.

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After the jump, the firm explains that this is nothing new at Patton.


According to a firm spokesperson, associate pay backs are nothing new at Patton Boggs, it’s a policy that associates have known about for some time:

Associates who fall materially short of their hours target will have their base salary adjusted as part of the associate evaluation process. This policy has been in effect for several years. There is nothing retroactive -the policy clearly states that decisions on tiers will be made at the time of associate reviews (which are ongoing). In fact, we choose not to adjust associate pay as much as the policy allowed and capped the reduction. Some associates were paid at a higher tier for the first couple of pay periods in 2009; post their evaluations, their pay will be adjusted to reflect the tier that they are on for 2009. That happens every year.

But hasn’t work been slow all over? It seems that regardless of individual performance, a lot of associates could be looking at a serious paycut simply because of industry wide economic factors.

Of course, one imagines that nobody was complaining about the multiple tier system when people automatically received raises commensurate with their actual hours billed.

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As we’ve seen time and time again, as long as people have jobs complaining is kept to a minimum:

Word on the street is that most are just happy to have a place to go every morning and understand 99% of the steps the firm is taking.

No layoffs, no cry.

Earlier: The 2009 ‘Obamaration’: Brought to you by Patton Boggs

Chapman and Cutler Blazes The Trail of Tiers