A couple of weeks ago, as Obamacare was just stumbling out of the gate, we asked our readers to tell us about the state of their own health insurance plans through their firms. Since the Recession, we have heard anecdotal evidence that some firms have been using health care cost clawbacks as a stealth expense-cutting tactic and de facto pay cut. We wondered how widespread a phenomenon this practice had become. Well, perhaps that’s a bit disingenuous. We had a strong feeling that, in this time of layoffs and all the rest of the Biglaw belt-tightening measures, that no category of expenses would be immune. And our survey results resoundingly confirm those suspicions: 89% of you tell us that your health insurance premiums have gone up since you started work at your firm.
A relevant tip showed up in the ATL inbox this week. An attorney at a prominent (V25) law firm sent us a memo outlining new changes to the firm’s health plan. Here’s an excerpt: “The deductible for the CIGNA PPO plan will change from $250 single/$750 family to $500 single/$1,000 family. Also, the PPO prescription copays [will all increase]. These changes bring our PPO plan design in line with market
practice for large law firms (emphasis added)”…
* How Jamie Dimon (and Stephen Cutler and Rodge Cohen) reached JPMorgan Chase’s tentative $13 billion settlement with Eric Holder and the Department of Justice. [DealBook / New York Times; Wall Street Journal (sub. req.)]
* Congratulations to all the New Jersey couples who got married since midnight, in the wake of the state supreme court’s decision not to stay a lower-court ruling in favor of marriage equality. [Newark Star-Ledger]
* Lawyers aren’t the only folks who know how to overbill; defense contractors do too, according to federal prosecutors who allege that a company provided prostitutes and kickbacks to Navy personnel. [Washington Post via The BLT]
* Judge Oing, this really isn’t that hard. Here’s a draft opinion for you in the long-running litigation between Macy’s and J.C. Penney over the right to sell Martha Stewart merchandise (by James Stewart, no relation to Martha). [New York Times]
* If you’d like to run with the bulls without schlepping to Spain, former lawyers Rob Dickens and Brad Scudder can help. Presumably their legal training helped them draft ironclad waivers. [BuzzFeed]
* TSA lets 9-year-old through without a ticket or adult help. Our security is top-notch in this country. [Lowering the Bar]
* New York attorney Bradley Dizik is the working to save Detroit’s Masonic temple from its financial woes. How screwed is Detroit? Even the international Freemason conspiracy can’t help. [Detroit News]
* Interested in national security — and getting CLE credit? [Lawfare]
* A Georgetown Law student was killed over the weekend. On a personal note, I knew Mark and he was truly great guy and my thoughts go out to his family and friends. [Washington Post]
With the continuing partial government shutdown and the shaky rollout of Obamacare, the issue of health insurance has never been such a central and divisive topic in the national conversation. Surely there are thousands of unemployed or temping JDs who are entering the brave new world of insurance exchanges and its attendant “hiccups.” In a development that perhaps should alarm the lowest-paid support staffers at law firms, some corporations appear poised to drop “bare bones” health-care benefits altogether for low-wage employees in favor of directing such employees to the new state exchanges.
Of course, for the lawyers at firms, such developments concerning the exchanges are essentially an abstract issue. That is not to say that attorney benefits packages are not subject to “new normal” economic pressures, or that the ultimate effect of the Affordable Care Act on private health insurance packages is unknowable. As noted here way back in 2009, some firms have added health care cost clawbacks to their expense-cutting repertoire of layoffs and pay cuts. Many associates have found themselves, post-Recession, with higher premiums and deductibles and thus, a de facto salary cut. Comparing salaries and bonuses across law firms overlooks the element of health insurance costs, about which there is no equivalent transparency. Undoubtedly there are significant variations across firms in this area, and some firms that appear to pay “market” aren’t quite doing so in light of their requiring a larger fraction of health care premiums. These variations inevitably distort direct comparisons.
We’d like to bring some transparency to this topic — but we need your help….
I nearly did not write this post this week. (I’ll pause while some of you wish that ‘nearly’ weren’t a part of that sentence.) I started the week with a mild toothache. By the time I reached my dentist on Tuesday morning, that niggling pain had bloomed into an infection that spread from my tooth to my jaw bone to the soft tissue of my face. Despite oral penicillin (and Vicodin!), I developed a high fever, the left side of my face swelled to grotesque proportions, and my jaw seized shut. I ended up in an ER on IV antibiotics.
While portions of the federal government ground to a halt due to insufficient funds, I held ice packs to my head and prayed quiet prayers about septicemia and the relative impermeability of the blood-brain barrier. Vaguely, in the background, I knew Congress and the president were arguing about health care. About funding the PPACA. Obamacare.
My heart goes out to folks harmed by the federal government shut-down this week. I also agree with those who are dismayed that Capitol Hill can’t reach a consensus sufficient to end the current crisis. It’s their job to find workable agreements, after all. That much, I hope most of us can agree on. Since we’re not here to agree, let’s talk a bit about Obamacare, the source of this week’s trouble in Washington . . . .
Over the last two decades, a dedicated Supreme Court bar has gained prominence, focusing on arguing the increasingly few cases before the justices each term. These lawyers face fierce competition in persuading clients to hire them, participating in a not-so-glamorous competition known in the industry as a “beauty contest.” At these lawyerly pageants, attorneys competing to take the case make their pitch and try to persuade the client that their firm is the best suitor.
In my new book, Unprecedented: The Constitutional Challenge to Obamacare (affiliate link), I go backstage and look at two of the most high-profile beauty contests in Supreme Court history: who would represent (1) the National Federation of Independent Business (NFIB) and (2) twenty-six states in their respective challenges to the constitutionality of Obamacare.
How did these litigants go about choosing their counsel? Which lawyers and law firms got passed over?
Elections have consequences, and right now I’m waiting for Republicans to start paying the piper. I’m looking at you, Ted Nugent. You declared, nay promised, that if Obama was reelected, you’d either be dead or in jail within a year. Well, tick tock buddy, we’re all waiting.
In fact, there were many Republicans who promised to do all sorts of horrible things should Barack Obama win. And apparently some of them are following through. Nothing makes a political statement about the vibrancy of our democracy than petulantly firing people when democracy doesn’t go your way.
And heck, we don’t even know how many people will be “not hired” because, “Grrr… we have to pay for our employees’ health care because we were too partisan or stupid to support a single-payer system that would have shifted the burden of health insurance away from private employers.”
At least, we won’t know unless they tell us. Which, incredibly, one solo practitioner apparently did, in a rejection letter to somebody who applied in response to her Craigslist ad. It’s easily the best post-election rejection letter we’ve seen….
* Sorry, I don’t like bike dudes; so many cyclists are rude, irresponsible, and annoying, to both pedestrians and drivers. If I were king, they’d go to prison; but I’m not, so we’ll have to settle for reeducation. [New York Times]
* What does Bruce Springsteen think of Obamacare? [Althouse]
* A few jurisdictions have laws against “attractiveness discrimination.” Try to guess which ones, then click on the link to see if you’re right. [What About Clients?]
* Larry Lessig and Ilya Shapiro debate the value of disclosure requirements in the campaign finance context. [Lean Forward / MSNBC]
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: email@example.com.
We currently have a very exciting and rare type of in-house opening in China at one of the world’s leading internet and social media companies. Our client is looking for an IP Transactional / TMT / Licensing attorney with 2 to 6 years experience. The new hire will be based in Shenzhen or Shanghai. Mandarin is not required (deal documentation will be in English) but is preferred. A solid reason to be in China and a commitment to that market is required of course. This new hire will likely be US qualified (but could also be qualified in UK or other jurisdictions) and with experience and training at a top law firm’s IP transactional / TMT practice and could be currently at a law firm or in-house. Qualified candidates currently Asia based, Europe based or US based will be considered. The new hire’s supervisors in this technology transactions in-house team are very well regarded US trained IP transactional lawyers, with substantial experience at Silicon Valley firms. The culture and atmosphere in this in-house group and the company in general is entrepreneurial, team oriented, and the work is cutting edge, even for a cutting edge industry. The upside of being in an important strategic in-house position in this fast growing and world leading internet company is of the “sky is the limit” variety. Its a very exciting place to be in China for a rising IP transactional lawyer in our opinion, for many reasons beyond the basic info we can share here in this ad / post. This is a special A+ opportunity.
When you talk to a prospective lateral about your firm during their first meeting, the conversation can go deep, sideways, and in circles. There is so much to share and discuss. What path of a dialogue can you follow to get better odds of a favorable conclusion?
Consider this template as a model you can use to discuss your firm’s opportunity. This simplifies the conversation and gives you a mental framework so the discussion is meaningful, relevant and moves things forward.
The Four P’s
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