Travel / Vacation

New Vacation Policy At Sedgwick Could be Disingenuous

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Recently, we’ve seen a lot of law firms take creative approaches to cutting costs. At Sedgwick, Detert, Moran & Arnold, the firm’s new approach to attorney vacations could save a bit of money, especially if the firm decides to go through a round of layoffs.
While discussing the Morrison & Foerster face-time policy, a commenter pointed out:

It is the same way in “firm holidays” and “vacation days”. When you have a minimum billable requirement, it doesn’t matter if the firm gives you unlimited amounts of vacation, because if you miss your expected hours, you will be more than able to take all the vacation you want when you are fired.

It appears that Sedgwick is doing just that. Last month, the firm decided to do away with the traditional concept of “vacation days.” The firm’s new approach allows attorneys to take as much time off as they want/need, provided they schedule it within their group. Here’s how the firm memo explains the new policy:

Sound great? A tipster explains the flip side of the new plan after the jump.


A tipster explains that giving attorneys more control over their own schedules is not necessarily a good thing:

While no salary cuts have been announced, per se, the firm’s new vacation policy amounts to a cut in compensation.
In short, the old policy allowed lawyers to accrue up to 45 days of vacation. On termination for whatever reason, those accrued days are due and owing. Most people accrued a lot, and as people have started peeling off for greener pastures/to avoid the axe, the firm has been writing big vacation checks. The new policy 1) halts further accrual, under the guise of treating attorneys like the professionals we are and 2) requires current attorneys to draw their accrued balance down to zero.

While attorneys do have to use up their accrued time, it doesn’t appear that the firm will cancel out that accrued vacation if someone is terminated before they’ve used up all of their time.
But going forward? The firm memo makes no mention of what, if any, vacation time will be paid out under this new “discretionary” plan.
That seems like a huge problem, we know that in this market people are not using up vacation time as they desperately try to make the hours necessary to hang onto their jobs. If all vacation is now “discretionary,” it seems like an excellent way to avoid a lump sum payment to the employees that don’t make it and are laid off.
Be careful what you wish for. Sometimes being treated “like a professional” is code for “you’re on your own.”
Sedgwick’s New Vacation Policy.pdf [PDF]
Earlier: MoFo Associates, Are You At Work Yet? You So Better Be At Work Already!
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