Biglaw

Biglaw Firm Keeps Salary Cuts In Force, Will Make Associates Do Extra Work To Recoup Lost Pay

Associates at the firm seem less than thrilled.

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As more and more firms make moves to reverse their COVID-19 austerity measures, either in whole or in part, Biglaw associates have come to expect the retroactive payment of compensation that was cut and some have been left wanting. But at some firms, the extra work associates need to do to recoup their lost cash just doesn’t seem to be worth it.

Baker Donelson — a firm that was ranked just outside the Am Law 100 at #101, with $378,877,000 in 2019 gross revenue — slashed salaries across the board back in April and furloughed an untold number of employees. Earlier this summer (in mid July, to be precise), the firm disclosed to associates how they could go about getting retrospective pay for the months their salaries were skewered.  To be brief, associates aren’t thrilled with the firm’s plan:

Essentially, we have to collect 125% of our revenue targets (which are all based on rates that none of us are actually getting so it’s more impossible than it appears) to get all of our retrospective pay. Even though our collections are up (August was 4% above pre-pandemic budget) they’re still sending emails basically telling us to not expect anything else any time soon.

In a confidential memo, Baker Donelson listed three ways associates could earn back some of their salaries (that memo is available in full on the next page):

Last, but not least, if an associate achieves at least 110% of their hours target, as of September 30, but have not exceeded one of the pay thresholds, that associate will receive a one-time payment that will bring their compensation to 90% of base pay.

What about their future pay? Is there any end in sight for the salary cuts at the firm? According to the memo, the answer is a hard no.

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At this time, no one will be paid 100% of their salary prospectively.

Best of luck to everyone at Baker Donelson as they try their hardest to collect on the compensation they’re due — it looks like they may need it.

(Flip to the next page to see the confidential memo from Baker Donelson.)

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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