Whatever dude, I've been first a ton of times. But not this time. Daaaamn.

Say goodbye to the billable hour as the method of charging for legal services.

It's a rare occurence for me, I take joy in the little things
-1

latham new york slashed pay for the first year class more than 50% in february

Your mom goes down.

Dear Editor:

It would please me a great deal if you could have the caption of some of these stories read something to the effect of "Hybrid Tough Love embraces the non-peer firm of F&L." Thank you.

Top 10!!! Not everyone can be No. 1. I understand, and am okay with it.

PE - your mom embraces tough love

The ship be sinking...

Can we go TTThio-free today? Here's hoping.

Apparently 1 / 4's mom is on that ship, 10. Better let her know what's going on.

I had a pineapple for breakfast, delicious.

Was this a frozen firm (i.e., is the 10% cut on frozen or un-frozen levels)?

Hey guys.

14 -- Don't concern yourself with the details. Just know that the ship be sinking. If any questions, ask 10. Thanks.

Only a Pirate would get its salary cut; this would never happen to a ninja.

15,

Incredibly creative and interesting post. Thanks.

I am a Seton Hall summer at Orrick. Should I be scared about this?

With the avalanche of firings and pay cuts going on, I have yet to hear a firm announce that, as a result of recently reduced cost structure, it will be passing on the savings to clients in the form of discounts and lower rates. And there is no evidence that this is happening. Its a popular view that these pay cuts and firings are being driven by and will redound to the benefit of paying, indignant clients. These benefits are accruing nowhere but partners' draws.

Hey 18, how was your weekend?

20 - you're a broken record and accordinly predictable. Why don't you talk to a partner or two or an in-house attorney and see what's happening to fee proposals. Firms have lost any semblance of leverage whatsoever, and even if the rate card isn't changing, the effective rates are absolutly under pressure. Or, clients are up and moving to other firms entirely.

I'm not saying Partners shouldn't take the hit - associates are getting screwed here in my opinion. But you're tired old song and dance is uninformed.

Wow 20. Nice realization. It's almost like they are in it to make money. You should let everyone know about this greedy plan. Maybe 15 and 18 can help you get the word out. They seem friendly.

Wow. 22 is full of typos. Needs more coffee.

-22

20, clients are creating their own savings by handling more work internally and via fixed fee (read controllable) billing arrangements. The pie is shrinking and staff and associates are the first victims. I think partners will also take a hit, albeit after everyone else does.

Thanks for the clarification 22, now I understand. I apologize for and hereby retract my previous post. Thanks for changing my life for the better.

- 20

7 = PE

Dear Elie:

This may come as a surprise, but you have a typo in this post. Can you find it? I don't want to tell you where the missing H should be, but perhaps if you considered the quality of your work as much as you consider your hate for Republicans you'd be able to do your job without error.

Thanks,
Kash's Ass Lobster

I love that how the biglaw bubble continues to deflate!

How many firms is this now that have instituted pay cuts? It'd be nice if someone put together a chart or something.

28 = racist. Affirmative action beneficiaries are allowed two typos per post (in order to promote diversity in English spelling), so this post even surpassed expectations.

7 is six months behind on his Discover Card payments.

Maybe this will help strip away the odd, lingering notion that associates are "partners in training" at law firms.

Associates are field hands, there to help harvest the cash crop from clients. If the crops are not growing this year, the farm owners fire the field hands. If the crops are growing like mad, get more field hands in here!

But in farming, no one thinks the farm owner is going to turn to a 10-year field hand and say, "Great work! Here is part of my farm!" That field hand has to go find his own farm to own. In law, you need to go find your own clients. So it is in law too.

As for associate salary cuts, there are no crops this year, so field hands get canned, or paid less if lucky enough not to get canned. The workers bear the risk of bad years first, as they are the variable expense that scales most easily. The farmer sure doesn't want to risk losing the farm to keep utterly expendable, replaceable field hands around.

Foley has a deferred compensation structure. The firm pays associates on an 1850 billable hours scale, then bumps up associates if they achieve 1950 billable hours at the end of the fiscal year. In senior years, the difference is quite large, and the higher level (1950) is still below market compared to other national law firms in the major markets where Foley has offices (Boston, New York, DC, Los Angeles, San Francisco, Silicon Valley, etc.). Any word on if the 10% cut is from the 1850 scale, the 1950 scale, or both? What about senior counsel, who are similar to non-equity partners at other firms?

This paycut hasn't even been announced internally at Foley. Not sure where ATL is getting its information, but this may or may not be accurate.

Watch the other Milwaukee firms cut pay within a week. They now pay the same comp for what is normally much less work.

Who gives a sh-t about Milwaukee firms? LOL

That is like saying Grand Rapids firms may be cutting back.

36 -- There are law firms in Milwaukee?

38 -- Yes. And I understand that they pay in grain and canned goods.

Any real info on MWE? The occasional comment that they will go under clearly does not come from anyone who understands the firm--it is nothing if not well run (if your standard is strictly PPP). But to keep that PPP up there, they are going to have to do some creative cutting--and you can count on them to be dishonest about it.

20 -- the partners making the salary / layoff decisions are all nearing retirement age and have recently experienced huge declines in their 401k plan and real property values. they're in a pickle they didn't expect and are looking out for No. 1. no doubt about it.

Akerman Senterfitt cut associate pay by 10% last week as well.

Breaking Media added a new blog above called "Going Concern" for accountants and CFO's.

41- or lost $$ with Madoff

Hey guys, if you think you're underpaid relative to your "worth", you are free to go to another employer and realize the true market value of your labor. Let me know how that works out.

Maybe we should nationalize legal services, pay lawyers less, give lousy services because the system is over-burdened...

Wait, wait, wait, that would never happen here.

20 -- that's right. But the partners own the business and they have a fiduciary obligation to run it for the benefit of teir fellow partners. The whole goal of a business is to minimize costs and maximize return for shareholders. Associate labor is merely a necessary input. If you worked in the corporate world, you would understand this.

33 - that is a great analogy and analysis. You could take it even further. For example, field hands who focus on developing the skills of their tedious tasks become better employees. That's it. It is all about the crops, not the harvesting.

DLA PIPER SECURE

49, so, what you're saying is insecure?

I'm assuming this is correct since DLA is not very secure, and you've declared yourself as having the security of DLA.

Wonder if this will have any impact on their potential acquisition of Fish?

Can you blow me were the DLA PAMPERS is?

Elie-Way to advocate for associates. Things could be a lot worse but things could be better. Most firms (some do) don't need to cut associate salaries but do so knowing partners can save money and sites like ATL are going to applaud them for it.

Love how all the prestige shits on this blog trash Midwest/Texas/Atlanta - and then cry to no end about how they can't afford to live in NYC on $160K a year, let alone when they get no bonus and a 10% cut.

Law firm partners do not fear this site anymore. The world has changed and every firm has taken a hit. If you think partners care when layoffs and deferred start dates are reported here, you are delusional.

51 -- whaaa? making up? true??

54 - But you're forgetting that those prestige whores detrimentally relied on society's promise that working in nyc made them better attorneys, more loved by the world, more attractive to the opposite sex, and lets face, just better people. I think the restatement section 90 has something about this -- I'm not sure because I'm not a fancy nyc attorney, maybe they can sue under that theory.

remember the chaos from the end of last summer about whether certain summer associates at this firm had received offers?????

Elie-Funny for a guy who is a partisan liberal it seems odd that you take the side of partners making over a $1 million a year

48 -- I think you meant "farther." As in, "[y]ou can take it even farther." Just sayin.

Graduating from SMU thus far has given me a prestigious position as a patent attorney with Locke Lord Houston, 3500 sq ft, wife, and a Lexis.

you have a 3500 sq ft wife?

Thats a big bitch!

47, completely agreed. I have no objection to partners claiming their residual rights and paying the prevailing price for inputs. But the narrative that clients are driving the process as well as getting the benefits rings hollow when a firm "does not give discounts" ---as many well-known and well-regarded examples are known to maintain. In fact, some raise rates in a downturn, banking on the logic that higher rates increase or maintains profitiablity on lower volume. This may make good business sense. But a decrease in rates tables does not necessarily follow or result from a the reduction in salaries or headcount. And so its often undignified for firms to announce that client pressures as such have led to these decisions --- rather than market pressures or business interests of the owners.

62/63 - Actually, if you retards could read, you'd see the "," between the "3500 sq ft" and "wife."

Guess you missed that day in the first grade.

Not 61, someone who believes if you're going to mock someone, do it right.

I'm more psyched about the 3500 sq ft Lex[u]s.

When she sits around the house, she sits AROUND the house.

20: It's clear that you are sitting at the bottom of the seniority ladder (either holed up reviewing docs or, more likely, still in law school, and in either case bitter about your future prospects). Here's a bit of real-world information that will hopefully enlighten you:

There has been a LOT of negotiation of billing rates, discounts, and fixed fees by clients for their services, and law firms have been forced to accommodate these reductions over the past year or so to avoid losing the business. If you had any clue about the client side of things (which you clearly don't), you would be well aware of this as it has been happening quite routinely since the economy began to tank. The standard "billing rates" are there for those well-off clients that can afford them. Most clients have negotiated reduced billing arrangements in many practice areas. And law firm partnerships have adapted and routinely accept these discounts, fixed fees, etc., from the billing partners as a matter of course now.

God, you're ignorant.

Wonder if this will have any impact on their potential acquisition of Phish?

Elie, where did you get this info? I'm with 35 - I haven't been told about this.

- incoming associate

53: ATL is a "legal Tabloid." Where did you ever get the idea that ATL should act as an advocate for associates? What naivete. I hope you wise up and start playing the game before your career goes down the tubes.

Get ready to see this in the top firms in the next 2 weeks.

Guaranteed that Foley will come out making an announcement proclaiming that salary cuts were necessary, and simultaneously touting the "fact" that they have not yet laid off any employees, even though it is common knowledge to Foley employees that Foley has done mass layoffs of staff and done "stealth layoffs" of attorneys.

61 -

If you really had a LexUs you probably would know how to spell it.

Also, are you bragging that you have a wife? Congrats. I guess that is a major accomplishment for someone that graduated from SMU.

For the record, I have a 3500 sq foot cock that you can suck on.

PE, it would please me a great deal if you would shut up and stop polluting this site with your insipient chatter. As a top V5 attorney, I have had enough time to post here about three times in the past few months. The fact that you have been prolific on this site tells me that you are (i) working for an inferior firm (likely), (ii) a student at a low-ranking law school (more likely) or (iii) one of (i) or (ii) and in desperate need of attention. Your comments are senseless and not worth the free webspace afforded to you. Time to stop with the "this is in response to [who cares]" and to start looking into real work possibilities available to you post-graduation. I am thinking immediately about posibilities available at a retail establishment as a clerk or some other hourly wage position. You are obviously not suited for top law and not suited to work for the Onion or other creative writing outlet. I would avail yourself of other hourly options, but avoid anything that requires serious analysis. No need to set yourself up for failure.

As long as there isn't a concomitant reduction in annual blowies, I'm not concerned.

Enough of this meaningless trivia. What's going on with that asian chick with the huge hands?

With up to 20% of associate positions in Biglaw being filled by foreigners, is it any surprise there is downward pressure on wages?

57, Restatement of what?
Torts, judgments, contracts, remedies, competition ... ? Get it together man.

74 - nicely done! post of the thread.

Elie, you do realize that Vault rankings are not based on or correlated with firm financials, right?

(Though I suppose from a recruiting competition standpoint maybe the Vault ratings are a relevant data point.)

76 - Suck it.

75, as a "top V5 attorney" I would think you would know that "insipient" is not a word. Try "insipid." "Incipient," which is a word, is meaningless in the context of your post.

65 is everything that is wrong with lawyers. Yes, we all saw that its a "," -- its still funny. You don't have to mock someone until they cry for it to be a good joke. Have an f'en sense of humor dude. I bet you are a ton of fun to have at parties. What a buzzkill.

not 62/63

56 - Fish has been courting one or two GP firms for some time. Fish is a large IP boutique with unsustainable rates and too many partners. It's inevitable, and it simply makes sense if you're a client.

75 pwned by 82. Ouch!

83 -

Strong agree. Also, 65, why would you defend a turbo-douche like 61, even on principle.

Lame.

Also, I was hoping to get an update on TTThio. I need more comments from retarded liberals and conservatives. It makes me feel better about myself.

65 -- if you have to start a sentence with the word "actually," you lose.

81 - Nom nom nom.

88 - Motorboat action

88 - Motorboat action

Hey 52 - Props for the non-sequitur PCU reference.

-Gutter

84 - Where are you getting your info re "Fish has been courting one or two GP firms for some time?"

Has this been confirmed?

84 - what a way to court ... fish looks pretty awful at the moment... by the time i spent my summer there the partners who'd hired me were ALL gone

92 - First, only a moron would reveal a source in response to your post. Second, pick pretty much any plugged-in associate or partner at Fish. Third, It's just not that hard to figure out if you watch the flow of clients/partners. Use your brain.

NO ONE at Foley seems to know anything about this... so how on EARTH did it get on here? Ellie did you corroborate any of this?

Agreed, attorneys were not informed of this.

This was never confirmed.

Still hasn't been confirmed, and Elie is a pigwhale.

Foley didn't do mass layoffs. At most, they let a handful of associates go on the DL, but their entire first year class remains intact.

Foley's entire first year class does not remain intact.

Can confirm 101's comment, the first-year class is not intact.

But there were no mass layoffs.

Firmwide web conf. Thursday at 5:00 EST

Oh, there was a large support staff layoff in May. "A survivor"

Any news on what happened during the 5 p.m. EST conference call?

Lots and lots of blowies

Lots and lots of blowies

The blowies were good, too. One might even call them MFBJs.

I <3 MFBJs.

ATL readers knew that the salary was going down 10% before Foley associates did... LOL. Foley, Foley, Foley.

Foley fired first years?

No, Foley has not fired lawyers.

113 - Yes, they have.

114, in which office? Maybe 113 should have been more specific -- has Foley LAID OFF lawyers? (And by 'laid off,' I also mean stealth layoffs, if any...)

111, sounds like no one is actually sure the 10% thing is even happening. But, 104, what was the web conference about??

I know that at least one first year from the Orlando office is gone. I have no idea if this person was fired or laid off.