Ed. note: Above the Law has teamed up with Law Shucks, which has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.

Last week we wrote that jobless claims were higher than expected and that predicting anything with any degree of confidence seemed pointless. This week, the number of people receiving unemployment benefits was lower than expected, the lowest levels in seven months, and that was before announcement that benefits will be extended again. Still, the best that can be said is that the cuts are slowing:

Companies are cutting fewer jobs as they see more evidence of a recovery, helped by government stimulus efforts and less weakness in housing and manufacturing. While a separate report today showed the economy expanded for the first time in more than a year, a rebound in hiring may take longer to materialize

So while things bounced around unpredictably in the broader market, we had two notable announcements in law-firm innovations this week. We’ll cut right to them after the jump.

Kaye Scholer has announced that its incoming first year associate will still be starting in January. All of them. But there is a catch. Kaye Scholer will split the class into two groups of full time associates. One group will work for the firm’s paying clients and get paid the normal first year starting salary. The other group — roughly half of the class — will work exclusively with the firm’s public interest group and will make $60,000.

Above the Law spoke with Kaye Scholer managing partner Barry Wilner about the program. He emphasized that the firm wanted to invite everybody in its first year class to start at the firm because the class is “excellent.” But he acknowledged that the demand for legal services isn’t what it used to be. Instead of sending half of its class back out on the street to look for public interest work, Wilner wanted to put them to work under the umbrella of Kaye Scholer’s pro bono efforts:

It’s incredibly difficult to get public interest work in this environment. … It’s a good thing from the standpoint that the firm is providing excellent public interest training and mentoring.

Wilner also told us that the public interest associates would still have access to all of the training other first year associates have, and they would be eligible for full firm benefits.

Associates weren’t asked to volunteer to be in the public interest group. Wilner said that the firm had to make difficult decisions about how to split the class. Practice group preference was one factor. But Wilner also said that because the incoming class was strong across the board, some amount of arbitrariness also played a role.

After the jump, incoming associates in the public interest group weigh in.

As we get back to the Vault rankings, we encounter more firms that have engaged in stealth layoffs. And a firm that conducts mass transit layoffs.

To refresh your memory, here’s the next group:

61. Cooley Godward
62. Pillsbury
63. Sonnenschein
64. Cahill
65. Holland & Knight
66. K&L Gates
67. Nixon Peabody
68. Foley & Lardner
69. Kaye Scholer
70. Steptoe & Johnson

The penalty for having a partner announce layoffs on a train was six spots according to Vault. There have been other Pillsbury cutbacks. But the Acela incident happened when associates had Vault surveys sitting on their desks.

After the jump, let’s take a look at some of the other firms in this group.

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

We — and everybody else — reported on the Kaye Scholer partner who kicked her children out of her car and was charged with endangering the welfare of a child. Today, Madlyn Primoff received a conditional discharge:

That means that the misdemeanor charge of endangering the welfare of a child against Park Avenue lawyer Madlyn Primoff will be dismissed in six months as long as she does not get arrested or violate the order of protection issued for her two girls.

“There is no ongoing danger to the children,” Westchester County Assistant District Attorney Audrey Stone told City Judge Eric Press during a brief appearance at 9:30 a.m.

Outside of the courthouse, Primoff apologized:

“Clearly I made a mistake,” Primoff said. “But I truly love our children and I know I am a good parent.”

As one commenter already anticipated, that apology is as close as we are likely to get to a real life “I’VE ABANDONED MY CHILD” moment.

Do you think that the (lack of) punishment fits the crime? Some additional details after the jump.

Madlyn Primoff, a partner in the bankruptcy and business reorganization group at Kaye Scholer, left her two daughters by the side of the road in White Plains. According to the New York Daily News:

A prominent Park Avenue lawyer was arrested after cops said she got so angry at her young daughters that she kicked them out of her car - and drove off.

Madlyn Primoff apparently couldn’t bear any more squabbling between her 10- and 12-year-old daughters Sunday and booted them out of the car in White Plains, Westchester County, authorities said.

A threat doesn’t carry much weight if you’re not willing to back it up, right? A tipster quips:

So maybe I won’t apply to Kaye Scholer … if their partners are this crazy.

But the 12-year-old demonstrated the dedication required of a future Kaye Scholer associate. She ran after her mother’s car, caught up to it, and got back in. You can’t stealth layoff that kid!

Unfortunately, the 10-year-old went to pieces:

The younger daughter wandered around the corner to Mamaroneck Ave., where a good Samaritan spotted her in tears about 7:30 p.m., bought her ice cream and then approached a cop in a patrol car.

The officer described the girl as “very upset” and “emotional” in the police report.

More discussion — including information about Madlyn Primoff’s $2 million home in Scarsdale, and a reader poll — after the jump.

Happy Monday. To kick off the new week, we have more law firm layoff news.

The latest dispatch comes from Kaye Scholer. The firm conducted layoffs in the Corporate and Finance department on Friday. The number of affected attorneys is not known, but is believed to be at least five, including some first- and second-year associates.

In November 2008, the firm claimed that it was dismissing some lawyers for performance-based reasons. Back then, managing partner Barry Willner stated: “While we are obviously mindful of the difficult economic situation affecting all of us, we have no current plans to engage in layoffs or other terminations outside of the normal course of our business.”

Alas, three months later, the economy looks worse than ever. So bad, in fact, that Kaye Scholer finds itself chasing after gangsters for legal fees.

More details about last week’s layoffs, after the jump.

After another craptasticical week for lawyerdom, here’s your weekly dose of wedding cheer. Unfortunately, like many of the firms we cover on ATL, LEWW has been forced to make some difficult decisions. We had to show one set of newlyweds the door—entirely for performance-related reasons, of course, because LEWW doesn’t do layoffs.

Here are the two lucky-to-survive entries:

1. Lauren Attard and Jordan Schwartz

2. Anna Joo and Adam Fee

Read more about these couples, after the jump.

Last month, we reported that K&L Gates would stop paying bar association fees for their attorneys.

Now, we’ve learned that Kaye Scholer has decided to stop paying membership fees for the New York Intellectual Property Law Association:

As announced in October, each individual attorney now is responsible for maintaining his or her membership in NYIPLA. Both new membership and renewals for 2009 should be paid in full and received by NYIPLA no later than December 31, 2008.

I thought IP attorneys were a golden goose in this rapidly declining legal market? Why would you piss them off?

The annual membership dues are $200 for lawyers with more than five years experience, $130 for attorneys with less than five years under their belt.

Based on figures we’ve received, Kaye Scholer stands to save (wait for it …) $9,920.

Keeping your associates enrolled in an organization that helps them enhance their skills < $9K?

Really?

Well, at least the holiday party is still on.

Earlier: K&L Gates to Nickels and Dimes
Kaye Scholer to More Cowbell

We’ve received a ton of comments and many tips that “stealth” layoffs are happening at Kaye Scholer. One commenter claimed:

[S]ince last summer, by my count at least 8 associates left voluntarily, as did 5 paralegals. An additional 8 associates were laid off and 4 paralegals were laid off with them. It seems to me that the fact that none of these paralegals were replaced, coupled with the fact that the only new blood brought into the department were the new 1st years in 2007 and again in 2008 shows that perhaps its the partners that are “dead wood” and not the people that worked for them.

Another commenter offered these numbers:

I was in the RE practice group. The breakdown of who was let go is as follows (and this does not include those that left voluntarily because they anticipated the coming of Armageddon). Class of:

2006 - (2)
2005 - (2)
2004 - (1)
2001 - (1)
1998 - (1)
Counsel - (1)

and at least 5 paralegals were let go.

I anticipate that the class of 2007 is next to be “reduced,” as there are now no remaining people out of the 5 associates from the class of 2006 and only 1 out of the 4 associates of the class of 2005.

A tipster put it all together like this:

This doesn’t even include those in corporate that were let go… The lit associates, some of whom billed close to 3000 hours last year, have absolutely no work, and are not going to even get close to the 2000 hours needed to make first tier bonus. Word going round is that there will be a mass round of layoffs for the lit people that didn’t get snipped after the first round in May.

What exactly is going on at Kaye Scholer? A response to the rumors by managing partner Barry Willner, after the jump.

We’ve reported on firms that have canceled their holiday parties or significantly scaled them back. Some firms have decided to go ahead with their holiday festivities.

But we hadn’t really heard of a firm that was looking to expand holiday revelry, until Kaye Scholer popped into our inbox.

In the past, Kaye Scholer has held the holiday party at the Palace. As we understand it, this year they are having it at The Pierre and employees are allowed to bring a guest.

Go Kaye! Way to keep morale high.

Of course, not everybody is thrilled. A tipster asks:

So, what does this say about the firm’s bottom line or desire for prudence in a time of economic crisis? Only Barry Willner knows.

Thanks Chief Tipster Downer.

Screw prudence. The Pierre is sweet and we’re happy to report “not horrible” news.

Earlier: Holiday Cheer from Shearman & Sterling
Fried Frank Turns Holiday Party into a Robin Hood Affair
Some Joy in Whoville!

Wachtell may be the most prestigious firm out there (according to Vault), but it has the industry’s worst Web site, as rated by Jonathan Thrope of the American Lawyer. We’re not completely sure we trust his judgment though, since he was “sucked in” by Womble Carlyle Sandridge & Rice’s animated dog. We waited for it to do something cool, but it just stretched and yawned.

According to Thrope, law firms are getting more serious about online marketing and using Web sites to create a distinctive brand. In general, law firm sites strike us as fairly dry. And boring. There are a few exceptions, like the Van Winkle Law Firm’s split personality bio page. North Carolina-based Van Winkle adds a personal touch to its site with dual bios (and photos) for many of its attorneys: one with professional highlights, and another focused on hobbies and life outside of work.

Other firms experiment with offbeat advertising, but seem to be using it to recruit attorneys, not clients. Like Curtis, Mallet-Prevost, Colt & Mosle’s creation of a Facebook page, and Stoel Rives’ free-style running promo on YouTube.

Of the assortment of staid sites in the AmLaw 100, five made Thrope’s cut for the worst. Check them out after the jump.

Judging from our traffic, readers are enjoying this rundown of the Vault 100. We do aim to please here at ATL. We appreciate those who have offered insights about firms in the comments.

Moving on to the next group (with prestige scores in parentheses):

61. Cahill Gordon & Reindel LLP (5.608)
62. Sonnenschein Nath & Rosenthal LLP (5.583)
63. Bingham McCutchen LLP (5.583)
64. Greenberg Traurig, LLP (5.478)
65. Holland & Knight LLP (5.416)
66. Heller Ehrman LLP (5.346)
67. Foley & Lardner LLP (5.266)
68. Steptoe & Johnson LLP (5.252)
69. K&L Gates LLP (5.242)
70. Kaye Scholer LLP (5.230)

As we move down the Vault list, “notable perks” are becoming less elaborate. This group is dominated by tales of free food, from endless soda at Greenberg Traurig to weekend doughnuts and muffins at Foley. And it appears that Pillsbury lacks a monopoly on cookie benefits; over at Cahill, lawyers are plied with “twice daily cookie trays.”

We note this food-related perk at Bingham: “If any lawyer takes out a more junior lawyer for drinks/dinner, he/she can submit the expense to the mentoring budget AND the senior person can get creditable hours.” Can you expense the roofies?

We invite you to compare and contrast these firms’ work, lifestyle, benefits… and cookies, in the comments.

Earlier: Vault 100 Open Threads - 2009

C’mon, guys. You may be a “blog,” but you’re still part of the Wall Street Journal, a major news organization, and part of the so-called “mainstream media.” Shouldn’t you leave chronicling Biglaw’s every last burp and hiccup to us, and swoop in only once you see a trend emerging?

Even we don’t know if we would have written up this item. From a WSJ commenter: “Wow, five secretaries? HOLY COW! Write a blog about it! Come on, guys. This is getting ridiculous. The layoff of five staff people is not newsworthy.”

P.S. We intend no disrespect to the five Kaye Scholer secretaries, for whom this is big news, and we’re sorry to hear about their job loss. We’re just sayin’….

Layoff Watch: Kaye Scholer Trims Five Secretaries [WSJ Law Blog]

A little follow-up on Kaye Scholer, whose bonus memo we posted back in November. From a source at the firm:

Just found out that despite the memo sent to associates last year, Kaye Scholer has decided to tie the special bonus to hours. Requiring 2200 hours to receive the special bonus.

There was no mention of this hours requirement in the original memo. Of course, it was designed to appear that Kaye Scholer was paying market when they had no intention of doing so.

But in fairness to the firm, they did leave themselves with some wiggle room, stating that special bonuses would be paid on a “discretionary” basis. It just seems that 2200 was the magic number required to trigger the exercise of said discretion.

Some associates aren’t happy about how that requirement was communicated (or not communicated, as the case may be). One associate claims that managing partner Barry Wilner, at a meeting held last year to discuss the bonus situation, did not disclose that 2200 hours would be the cutoff. As a result, “[a]ll the associates had to go on were rumors, which caused many associates to scramble at the last minute to achieve what they thought would be a sufficient amount of hours…. I’m not so much concerned about the amounts involved as much as I am concerned about the lack of information that floats through this firm.”

Two other bizarre bits of news about Kaye Scholer — involving “a giant Care Bear” and a roller derby queen named “She Raw,” which would seem to take the firm to Venable-level heights of weirdness — after the jump.

The firm of Kaye Scholer is the latest to jump on the bonus bandwagon. They’ve just announced year-end and special bonuses. The year-end bonuses are issued in ranges for each class; the special bonuses, to be paid “on a discretionary basis,” appear to be on the standard scale ($10k/$15k/$20k, etc.).

Memo after the jump.

Our open threads on Vault 100 law firms seem to be drawing fewer comments. But we’ll finish what we’ve started. We don’t want to give you a case of these.

So here is this afternoon’s set of Biglaw shops (with Vault prestige scores in parentheses):

66. Greenberg Traurig, LLP (5.631)
67. Kaye Scholer LLP (5.591)
68. Holland & Knight LLP (5.498)
69. Steptoe & Johnson LLP (5.403)
70. Foley & Lardner LLP (5.360)

Among these firms, the special ATL shout-out goes to Greenberg Traurig. GT is the firm that incites the strongest passions in people.

Please discuss these five fine firms in the comments. Thanks.

The Vault Top 100 Law Firms [Vault]

Earlier: Vault 1-5; Vault 6-10; Vault 11-15; Vault 16-20; Vault 21-25; Vault 26-30; Vault 31-35; Vault 36-40; Vault 41-45; Vault 46-50; Vault 51-55; Vault 56-60; Vault 61-65

We received this from multiple tipsters at Kaye Scholer, so consider it confirmed. One of them notes: “They matched retroactively, which they didn’t do last year.”

Barry Willner/NY/US/KSFHH
01/25/2007 05:31 PM
Phone: (212) 836-8421

Subject: 2007 Salaries

We are pleased to advise that the Firm is raising associate salaries for the Classes of 2006 through 1999 to reflect the competitive market . The new salaries in New York are as follows:

Class of 2006—$160,000
Class of 2005—$170,000
Class of 2004—$185,000
Class of 2003—$210,000
Class of 2002—$230,000
Class of 2001—$250,000
Class of 2000- $265,000
Class of 1999—$280,000

We will also be raising associate salaries for offices outside of New York but we have not yet determined what those salaries will be. Once they are determined, the heads of your offices will let each of you know the new salary levels. All salary adjustments for all offices will be effective as of January 1st.

To the extent adjustments are needed in order to raise salaries for junior counsel or senior associates above the 8th year class, any such adjustments will be addressed on an individual basis.

We are looking forward to another record year at the Firm and to your continued commitment to our clients.

Earlier: Previous announcements of law firm associate salary increases (scroll down through “Skaddenfreude” archives)

After we posted the press release recognizing the Sullivan & Cromwell and Kaye Scholer lawyers who worked on the recent Onex / Kodak Health Group transaction, one of you pointed out:

Respectfully, you missed the lede in the Kodak post. Read Exhibit C to the Charney Complaint (PDF) re: Kodak’s complaints regarding fees and overstaffing. Then look at the attorney list for Kodak and compare the slim list for the other side.

S&C put out its major league press, earning how much in fees??? I’ll leave it to you to parse the Exhibit C memo. Have at it!

Point well-taken. The announcement mentions just five Kaye Scholer lawyers, versus almost thirty S&C lawyers, who worked on the deal.

In fairness to Sullivan, the Kaye Scholer part of the announcement names only partners, not associates (presumably omitted from the list). But it is true that a staggering number of S&C lawyers worked on this transaction — some 28 lawyers, about a third of them partners, from six different countries. Basically, everybody and their cousin-in-law worked on this deal.

Not surprisingly, Kodak squealed about the bill. For your reference, here’s Exhibit C to the Charney Complaint:

Partner Stephen Kotran notes that griping about the bill is “par for the course” for Kodak.

But Kodak might be wondering: Is overstaffing “par for the course” for Sullivan & Cromwell?

(Okay, that last line was gratuitously snarky. For all we know, Kodak was just delighted with the quality and cost of S&C’s legal representation. Heck, maybe we’ll drop Kodak a line and see if they have any comment. We’ll keep you posted.)

Earlier: Prior ATL coverage of Charney v. Sullivan & Cromwell (scroll down)

Oops, we left out new partner news from the MC post that we just published. And since half of you probably just made partner at Jones Day, that’s not a good thing.

Here’s the news:

* Jones Day: Forty-five (45!!!) new partners. Names here.

* Kaye Scholer: Four new partners. Names here.

* Stroock & Stroock & Lavan: Three new partners. Names here.

* Vinson & Elkins: Fourteen new partners. Names here.

NY Associates Making Partner, Counsel [NYLawyer.com]
Jones Day Names 45 New Partners [Jones Day]
Kaye Scholer Announces New Partners and Counsel [Kaye Scholer]
Stroock Names New Partners and Special Counsel [Stroock & Stroock & Lavan]
Vinson & Elkins Names 14 New Partners [Vinson & Elkins]