From: Guy Halgren
Sent: Tuesday, October 6, 2020 2:44 PM
To: Guy Halgren
Subject: Town Halls Follow Up
To All Staff, Associates, Special Counsel and Staff Attorneys:
This is a short summary for those of you who could not attend one of the three Town Halls Ted Tinson and I presented today.
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Another Measuring Year has ended and I am pleased to report the key financial metrics for 2020 compared favorably to 2019 and we are on a strong trend. September was quite a capstone.
Effective with the payroll period beginning September 28, 2020, the remaining 50% of the April compensation adjustments have been rolled back. Additionally, for those of you who were on a percentage compensation adjustment, your October 16, 2020 paycheck will include an amount to make you whole for the amount your compensation was reduced in the April-September timeframe. We previously had announced our hope that we would be able to make folks whole before the end of the year. That we could do it now so far ahead of schedule is a testament to your hard work and focus on the needs of our clients. The Executive Committee and the Partners thank you!
Most of those staff on workshare (predominantly secretaries) will remain on workshare at least through the end of the year. We continue to closely monitor the workshare program to make sure our work is getting done and you are supported. We also continue to monitor the total compensation and benefits received by our staff on workshare and will make sure they are also made whole consistent with workshare regulations should there be any shortfalls.
We continue to have 44 staff on furlough from April. These generally are office services people who cannot perform their jobs from home such as receptionists and file center staff. We have been waiting for a time when we could predict full reopening of our offices and these folks would again be needed. We also have been waiting for the federal government to make a decision on reinstatement of the supplemental federal unemployment benefits. Unfortunately, we do not have clarity on either of these points, and we are not sure when we will. Consequently, we are today having further conversations with those on furlough. Due to the pandemic and limited expected office usage for a continued period into the future, we have now determined we will not have jobs for 22 of the 44 furloughed people. These positions will be eliminated as a reduction-in-force with a severance package and medical insurance paid through year-end. The other 22 for whom we may have a job at an unknown point in the future will be offered the opportunity to opt into the same severance package on a voluntary basis. If they would rather stay on furlough we will continue to pay for their medical insurance at least through year-end. The severance package is one week of salary per year of service, capped at 26 weeks and with a minimum of four weeks. The Executive Committee’s decisions regarding our furloughed staff were difficult, but we have always strived to be transparent, and it is critical folks know where they stand.
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At this time of notable success for Sheppard Mullin, please keep in mind those of our furloughed folks who will be leaving the Firm and all of those people in the world not weathering the pandemic as well as us. Lots of folks out there have lost their jobs, their health and their businesses and need our support.
Thank you again for all of your contributions. We all now turn our attentions to the remainder of calendar year 2020 focused on our health, our clients and each other.
Take care,
Guy
Guy Halgren | Chairman
SheppardMullin | San Diego