Biglaw

Am Law 100 Firm Furloughs Staff, No Other Cost-Cutting Measures For Now

The firm hasn't made a decision on pay cuts.

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The question of how, exactly, law firms should deal with the economic uncertainty surrounding COVID-19 remains an active one. While we’ve seen a range of responses from Biglaw, from layoffs, to furloughs, and associate salary cuts, one of the more vexing question remains what to do with staff who are dependent on physical locations to do their job and cannot work from home.

Sheppard Mullin, currently clocking in at 56th in the Am Law 200 ranking, just announced furloughs for a small amount of their staff. Those impacted are those that cannot work from home, and, in a statement from the firm, they’ve revealed staff members will continue to have medical benefits and will receive a bridge fund grant (funded by partners’ personal funds):

Sheppard Mullin today furloughed 33 of our 823 staff. We furloughed these team members because they cannot perform their jobs (such as receptionists, support services and file center employees) from home. These personnel have been on payroll through the four weeks of our Work From Home program. They have been told to expect to return to work in 60-90 days. Given the levels of unemployment insurance available, none of those furloughed will experience reduced compensation. During the furlough, Sheppard Mullin will pay for full medical benefits and will not require the furloughed employees to contribute to the insurance costs. In addition, because of the lag time between when an employee is furloughed and when unemployment benefits are received, partners and senior management have contributed personal funds to create a Bridge Fund to provide full equivalent take-home pay during the wait. These bridge funds are a grant, not a loan, and will not be paid back.

And that’s it for austerity measures, at least for now. The firm says while layoffs are off the table, pay cuts or other measures haven’t been decided. The firm statement goes on:

Aside from the furlough of these staff members, we have made no other decisions regarding additional furloughs or a reduction in hours or compensation. We have no intention of doing any layoffs. Our goal is to treat all of the Sheppard Mullin family fairly and with consideration, while making sure we remain a strong firm.

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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headshotKathryn 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).

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