Cost Pressure Causing Firms to Rethink Talent Development: The Morning Minute
The news and analysis you need to start your day.
November 07, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
THE BELT TIGHTENS - Although the inflation rate is down, law firms are still battling a boatload of cost increases that are expected to have an outsize influence on their operations going into 2024, Law.com's Andrew Maloney reports. "It's really across-the-board," added Kristin Stark, a principal at Fairfax Associates, pointing specifically to "the rising cost of talent, but also big buckets of overhead [like] occupancy, specialized insurance, health insurance and staff salaries." Among the casualties of this cost pressure could be business development, training and perhaps even recruiting and associate promotions.
A 'STAGGERING COST' - Law firms are also dealing with another expense that requires more than some balance sheet maneuvering to offset. On average, large law firms are losing nearly 10% or $21.9 million of annual staffing costs due to poor employee wellbeing, according to a new survey by workplace mental health solutions provider Unmind. By employee, that's about $14,512 per year, Unmind found. As Law.com's Jessie Yount reports, Unmind collected data from 3,814 legal professionals at six undisclosed multioffice law firms. "Despite growing interest and investment in wellbeing initiatives across the legal sector, mental health-related absence, attrition and burnout are on the rise," Nick Taylor, the CEO and co-founder of Unmind, wrote in the report.
ON THE RADAR - Virgin Galactic, a space tourism company founded by British business magnate Richard Branson, was hit with a wage-and-hour lawsuit on Nov. 3 in California Superior Court for Los Angeles County for claims under the Private Attorneys General Act. The court action, filed by the Colby Law Firm, contends that Virgin Galactic misclassifies employees as exempt, resulting in a failure to pay overtime wages or provide required meal and rest breaks in violation of California labor law regulations. Counsel have not yet appeared for the defendant. The case is 23STCV27067, Grylls v. Virgin Galactic. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.
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EDITOR'S PICKS
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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