Biglaw

Salary Rollbacks And Full Restoration Payments For Am Law 50 Firm

This should make for some happy associates.

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The prospects in Biglaw seem to be looking up. After the spring of 2020 was spent documenting the austerity measures firms were taking to survive the economic impact of COVID-19, it seems a corner has been turned. Now, we have happier news from Am Law 50 firm Perkins Coie.

So, what were the austerity measures at Perkins Coie? In April. the firm announced the partnership was deferring ~19 percent of their compensation. Then they came for everyone else’s salary. Beginning with their June paychecks, non-partner attorneys saw a 15 percent cut, staff making $200,000+ took a 15 percent cut, and staff making $125,000-$200,000 saw compensation cut by 10 percent.

But today, the firm announced they’ve weathered the COVID storm and they’re doing an about face on salary cuts. Not only are the cuts over, but the firm’s making full restitution payments to make their employees’ salaries whole. As a statement from the firm reveals:

Based upon the firm’s continued strong financial performance, and the positive impact of the business resilience measures we adopted in the spring of 2020 as a result of the coronavirus pandemic, the firm will discontinue the salary reductions that were instituted in June and make full restoration payments to those who received reductions.

“The firm was able to quickly pivot to a virtual environment which allowed for uninterrupted service to clients,” according to Managing Partner Bill Malley. “Today’s announcement results from the firm’s strong client relationships and the collective efforts of lawyers and staff who worked tirelessly to continue providing outstanding service to our clients throughout this extraordinary year.”

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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