How is Biglaw dealing with the economic upheaval surrounding COVID-19? Well, there have been layoffs and salary cuts (10 percent pay reductions, 25 percent pay cuts, and partners who’ve slowed or eliminated their payday) and benefits have taken a hit. Now we’ve heard that one Biglaw firm has taken a slightly different approach.
Pryor Cashman has furloughed associates amid the economic downturn. Though the difference between furloughs and layoffs is fuzzy at best, the implication of a furlough is that the employee will be re-hired at some point. Tipsters at the firm haven’t been told a specific date or timeframe that the now out-of-work associates will be hired back.
According to a statement by the firm, they furloughed associates whose work has dried up because of coronavirus. And they didn’t provide a specific time table for bringing back the associates, only saying they’d do so once the work is back:
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We have furloughed some associates whose workflow has been interrupted by the COVID-19 crisis. We are hopeful and expect that we can reinstate them as soon as their work levels approach norms again.
Hopefully for those impacted, the furlough will be relatively short. But given the lack of certainty surrounding the virus, it doesn’t look great.
If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).
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Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).