Biglaw

Am Law 100 Firm Announces End To Salary Cuts And Compensation For All Pay Lost

Exciting news!

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You may have noticed that some firms are doling out cash hand over fist as they thank their associates for a job well done during the pandemic. Amid the excitement over bonuses, associates at other firms are gritting their teeth, still waiting to see if the salary cuts they endured thanks to COVID-19 will go away any time soon. As luck would have it, one Am Law 100 firm just made the decision to end employees’ paycheck pain.

Littler, the largest employment firm in the world, came in 66th place in the 2020 Am Law 100 rankings with $590,038,000 gross revenue in 2019, but that didn’t stop the firm from slashing salaries across the board this past spring thanks to the coronavirus crisis. Back in May, Littler reduced compensation for equity partners and corporate management by 20 percent and cut salaries for highly paid nonequity partners and non-attorney senior-level administrative employees with compensation of more than $300,000 by 15 percent. In June, the firm put all other employees’ pay on a sliding scale chopping block, averaging cuts of 10 percent. Those unlucky enough to be unable to work remotely due to their job responsibilities saw their pay reduced by 50 percent.

Now that almost five months have passed, the firm is not only doing a complete about face on its austerity measures but it will also make employees whole for the money they lost during the height of the pandemic.

Sources tell us that during a pre-recorded town hall meeting, co-managing directors Tom Bender and Jeremy Roth announced that all salary reductions had been fully reversed and that all pay would be restored as of the firm’s September 25 pay period. Littler employees were also told that they’d receive true-up payments by or before October 2 to bring them to the levels they would have been at prior to the pandemic. As for those who had their salaries cut in half, the firm is still “working with” them, and no furloughs or layoffs have been made to date.

Littler thanked all of its employees for their hard work as management announced the end of the salary cuts:

Despite the many ongoing challenges posed by COVID-19, we are proud of how our team stepped up to help serve our clients, who are navigating the host of complex workplace issues associated with the pandemic. This collaborative spirit is reflective of our firm culture and we thank all of our attorneys and staff for their continued dedication in the toughest of times.

Congratulations to everyone at Littler. We know the cuts may end soon at additional firms, but let’s hope everyone is made whole, too.

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If your firm or organization is slashing salaries or restoring previous cuts, 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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Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

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