Biglaw

Biglaw Firm Announces Complete Rollback Of COVID Austerity Measures

Exciting news for everyone at the firm.

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As we get closer and closer to the end of 2020, more and more Biglaw firms that instituted austerity measures during the height of the coronavirus crisis have walked them back either in part or in full. Today, we have news from Stoel Rives, a firm that came in 132nd place in the most recent Am Law 200 rankings, with $236,541,000 in gross revenue in 2019.

Back in April, the firm announced across-the-board salary cuts and employee furloughs. Partner distributions were reduced by 20 percent; associates, staff attorneys, and of counsel attorneys had their salaries slashed by 20 percent; and staff saw hourly reductions with corresponding pay cuts (5 percent for those earning less than $75,000; 10 percent for those earning $75,000-$100,000; 15 percent for those earning $100,000-$150,000; and 20 percent for those earning over $150,000). In September, all of those cuts were partially rolled back, with third quarter partner distributions reduced by 15 percent instead of the 20 percent; associates, staff, and of counsel lawyers had their salaries slashed by 10 percent instead of 20 percent; and staff saw their hours and compensation cuts reduced as well (staff with a 20 percent reduction changed to 10 percent; staff with a 15 percent reduction changed to 7.5 percent; staff with a 10 percent reduction changed to 5 percent; and staff with a 5 percent reduction returned to full salary and schedule).

Now, thanks to the firm’s financial performance, all of these cuts have come to an end. Melissa Jones, the managing partner of Stoel Rives, released this statement:

Stoel Rives is pleased to announce the elimination of its temporary pandemic and economic uncertainty pay cuts. By October 12, 2020, all lawyers and staff will have their base pay returned to its pre-reduction level. This decision is based on the firm’s performance through the end of Q3. The firm will continue to operate in a conservative manner as the fourth quarter remains uncertain for the legal industry.

Congratulations to everyone at the firm on getting back to their full salaries. Now it’s time for them to wonder if they’re going to be made whole.

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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