Pryor Cashman Furloughs Some Associates, Citing Interrupted Workflow
Another New York midsize firm, Rivkin Radler, announced its own cost-saving moves this week by withholding partner pay and reducing associate and staff pay.
March 31, 2020 at 04:28 PM
3 minute read
The original version of this story was published on New York Law Journal
Pryor Cashman has furloughed some associates in response to a slowdown in work related to the coronavirus pandemic, the firm's managing partner said in an interview.
Ronald Shechtman, leader of the 185-attorney firm, said economic uncertainty had led the Manhattan-based firm to furlough some associates. He wouldn't specify the number of associates or say whether any practice groups were particularly impacted, but said in a brief call that the firm is "hopeful" and expects it can reinstate them once work picks back up.
"We have furloughed some associates whose workflow has been interrupted by the [COVID]-19 crisis," he said. "We are hopeful and expect that we can reinstate them as soon as their work levels approach norms again."
"We're acting based on the workflow we're seeing and following closely," he added. Speaking of the economy as a whole, he said, "The crystal ball that tells us what is coming is not just cloudy at this time, but it is virtually opaque."
Pryor Cashman, whose headquarters is in Times Square, also has locations in Los Angeles and Miami. The firm is well known for its legal work in the media and entertainment industries.
News of the furloughs was reported earlier by Above The Law.
Pryor Cashman is part of a growing number of firms to take immediate measures to rein in expenses. Other firms have laid off staff, deferred partner pay, or cut lawyer or associate pay or both, in response to the coronavirus pandemic.
For instance, another New York midsize firm, Rivkin Radler, announced its own cost-saving moves this week. Evan Krinick, Rivkin Radler's managing partner, said in a statement to Law.com that "partners did not receive any compensation for March." The firm also said it will temporarily reduce compensation for all attorneys and staff by 20% "to ensure the long-term well-being of our firm."
"Like most businesses, we are working to address the complex challenges presented by this global pandemic. Foremost in all of our minds is the health and safety of our families, colleagues and friends," Krinick's statement said. "For business, the reality is that the temporary closure of the courts has decreased our workload in our litigation groups and the general economic downturn has impacted our commercial transactional practices."
"We fully expect to restore all to their regular compensation levels as soon as the present crisis abates," the statement added.
Earlier on Tuesday, Cadwalader Wickersham & Taft said its partners wouldn't be paid and associates and staff would have their pay cut by 10% to 25% to avoid the risk of having to take more drastic measures down the road.
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