Biglaw

Biglaw Associate Salary Cuts Come To The Am Law 50

Top firms aren't immune from COVID-19 austerity.

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Up until now, the Biglaw COVID-19 austerity measures, specifically the layoffs, furloughs, and associate salary cuts, have stayed away from the very top of Biglaw. Before the economic upheaval of the coronavirus, the Am Law 50 was financially pulling away from the second 50, and the biggest in Biglaw have mostly been reassuring folks about their economic stability during these tough times. But now we’ve learned that even top firms are not immune to the COVID-19 the pay cuts.

Today, Bryan Cave Leighton Paisner (ranked 44 by Am Law) co-chairs Steve Baumer and Lisa Mayhew sent a firm-wide email letting everyone know that all employees making over $40,000 will be taking a 15 percent pay cut. Folks are also encouraged to volunteer for a sabbatical:

The actions we are taking are:
• A proposed 15% salary reduction for all our employees (lawyers and business services staff) across all our offices for a 13 week period starting in May. To protect those on lower incomes, the reduction will not apply to employees whose full-time salary is the equivalent of $40,000/£32,000 or below (and we will ensure that any reduction would not result in a full time salary going below this level).
• We understand that some colleagues will remain exceedingly busy in this period and, therefore, we intend to establish a bonus pool for the benefit of those whose performance during the year merits additional compensation.
• As an alternative to the salary reduction, you are invited to volunteer to:
– take a sabbatical of a minimum of six weeks and maximum of six months, during which time you would receive 30% of your normal
salary; or
– reduce your working hours to work on a part-time basis for a minimum
period of 6 months, working either 4, 3 or 2.5 days per week. Such reduced working hours would be matched with a corresponding reduction in pay.

Yes, this announcement comes after tipsters at the firm reported being assured by partners that the firm was poised to weather the coronavirus storm. You can read the firm’s full email on the next page.

Good luck to all those at BCLP, and hopefully these cuts means the firm can avoid layoffs or furloughs.

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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