We’re now more than halfway through 2020, and the legal profession has spent just about as long being bogged down by the coronavirus crisis. Thrown into financial upheaval, many Biglaw firms put austerity measures in place to prepare for what would become the worst economic downturn since the Great Depression. Several months have passed, and some firms are now reversing course on their cuts.
About four months ago, Katten Muchin — a firm that placed 63rd on the latest Am Law 100 ranking — put all of its employees’ salaries on the chopping block while furloughing others. In late June, the firm made some of those furloughs permanent. At the time, there was no end in sight for the spring salary cuts. If you recall, those cuts were up to 20 percent for both business professionals and attorneys making over $100,000. Equity partners who suspended their monthly draws in April and May received a payout in June, but at a 25 percent reduction from previous levels.
Now, employees at Katten are finally receiving some good news on the salary front.
The firm will be doing a partial about face on its salary cuts, reducing them by 50 percent. Now, all attorneys and business professionals who make more than $100,000 will only see their salaries reduced by 10 percent. We’re sure those impacted at the firm must be thrilled (and wondering when their salaries will be fully restored).
Let’s hope more firms are able to roll back COVID-19 austerity measures — and soon.
If your firm or organization is slashing salaries, 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).
Katten Cuts Back On Coronavirus Salary Reductions (Law 360)
Earlier: Am Law 100 Firm’s Furloughs Have Turned Into Layoffs
Am Law 100 Firm Slashes Salaries, Furloughs Staff Lawyers And Staff
Staci 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.