Biglaw

Biglaw Firm Reverses Austerity Measures And Associates Will Receive True-Up Payments -- If They Bill Enough

The firm's come a long way since attorney layoffs.

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There’s good news at Dorsey & Whitney! The Am Law 100 firm, which underwent a series of COVID-19 austerity measures, has reversed course.

The big news is that the pay cuts that defined the firm’s austerity measures are a thing of the past, effective this month. That means for associates, who took a 15 percent pay cut, their yearly compensation will be 95 percent of their base. And, as the email from Managing Partner William R. Stoeri notes, there is the ability for associates to earn their full compensation — if they bill enough:

For associates and others with the true-up option, that option remains but starts at 95%; you will get 95% of salary regardless of hours and if your guideline hours come in above 95%, you will receive a corresponding proportion up to and including all of the remaining 5%.

You can read the full memo on the next page.

Reactions from insiders at the firm has been pretty positive — who doesn’t want to see their firm recover from the economic ravages of COVID, especially since the firm had to make attorney layoffs as part of its austerity measures? But there is a downside. A tipster reveals what’s been going on with year-end bonuses at the firm:

The downside is the firm is still hemming and hawing on whether any bonuses will happen. Of course, as a midwest cow-town firm (albeit one with NYC presence and once or twice making the Vault 100 ranks in ancient history), no one was expecting bonuses right now but associates seem unwilling to work any harder unless there’s a guarantee that there will be bonuses as per the internal (although still very black-box) mileposts and guidelines in effect prior to COVID-19. As of now, associates seem to have no incentive to work any harder than meeting the minimum hours.

Overall, though, people are really happy and appreciative of this decision. We are finally the best firm in Minneapolis. We don’t need mega mergers to prove ourselves and try too hard. Midwest side till I die….

At least insiders seem to see the upside in all this.

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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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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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