(Photo: Diego M. Radzinschi/ALM)In More Expense Trimming, Ogletree Cuts Pay for All Lawyers and Some Staff
The new cost-cutting measures come about a week after Ogletree announced furloughs and reduction in hours for some staff.
April 21, 2020 at 01:15 PM
3 minute read
The original version of this story was published on Daily Report
After announcing limited staff furloughs last week, Ogletree Deakins Nash Smoak & Stewart on Tuesday said it also will cut pay through the end of the year for all lawyers, including shareholders, and for staff making over $100,000, in response to the coronavirus pandemic.
"In order to preserve jobs and maintain the stability of the firm for the long run," said the national labor and employment firm said in a statement, the firm "has made the difficult decision to implement pay reductions for attorneys and highly compensated staff through the end of the year." The firm announced the pay cuts internally on Monday.
Ogletree is reducing compensation for equity shareholders by 20% and for other lawyers by 15%, according to the statement. Staff earning $100,000 or more will have pay cut by 10%, but those making less than that will not have their compensation reduced. The firm has about 860 lawyers in the United States.
Ogletree had announced last week that it would furlough some staff and reduce hours for others whose jobs were not suited for remote work. Those affected received two weeks of COVID-19 paid leave from the firm.
On Tuesday Ogletree said that it will continue paying the full health insurance premiums for those placed on temporary unpaid leave through June 30–a one'month addition from its initial decision last week to cover those employees' premiums through May 31.
With a furlough, workers are eligible for state unemployment benefits, plus $600 per week from the federal government that is available through July 31.
"We plan to reinstate staff once the economy recovers," Ogletree said in the statement.
Ogletree also announced last week that it was canceling its summer associate program due to the challenges of a remote-work environment. The firm had planned to field a summer class of 36 law students in 22 of its 56 offices.
According to data from The American Lawyer released Tuesday, Ogletree reported a 2% revenue increase last year to $520.1 million and a 3.2% increase in net income to $151 million. Profits per equity partner was flat at $777,000.
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