Kaye Scholer — which conducted stealth layoffs in November and open layoffs in February — is now cutting back on associate pay. The move will only affect associates that are on track to bill below 1600 hours this year, but affect them it will. The WSJ Law Blog reports:
Here’s the way it’ll work: All those first and second year associates who, as of June 1, were on pace to bill fewer than 1600 hours for the year will have 20% of what they stand to make over the last half of the year withheld. (In other words, the firm will hang on to 10% of the year’s salary.) For third year associates who fall beneath the threshold, the firm will withhold 15% of the July-December pay (or 7.5% of the full-year salary).
If, at the end of the year, the associates have hit 1600 hours, they’ll have their full pay restored.
Resting at #70 in the Vault rankings, Kaye Scholer seems to just be continuing the trend of firms in this range trying what they can to save money.
At least the attorneys will have the opportunity to make the money back if they can pick up their hours. It’s more like being sent to your room without dinner, instead of being left by the side of the road.
Kaye Scholer to Withhold Pay From Lower-Billing Associates [WSJ Law Blog]
Earlier: Nationwide Layoff Watch: Kaye Scholer
In This Market: Are You Getting Laid Off or Fired? A Kaye Scholer Case Study