Photo: John Disney/ALM

While a growing number of a law firms eye furloughs and layoffs in response to the COVID-19 crisis, Paul Hastings is fundraising to respond to the emergency needs of staff who've been harmed by directly by the virus or have suffered from its consequences.

The firm, which generated almost $1.27 billion in revenue last year, has announced that it will directly match all contributions made by partners, lawyers and any other staff. Money from the resulting fund will be available to any employees who are eligible for benefits: staff and associates, along with other non-partner lawyers.

Employees will be eligible to apply for funds for themselves or on behalf of dependents or immediate family members.

The firm's leadership worked with the partners who lead PH Balanced, the firm's initiative focused on work-life balance.

"The committee sent out a communication to senior leadership, and we got a call the same day, saying, 'We need to start a fund'," said Karlie Ilaria, the head of diversity and inclusion at Paul Hastings.

While the firm is still finalizing the criteria for eligibility, the list of needs covered will include medical expenses that go beyond what is included in regular benefits, as well as mental health care, including apps for remote consultations and co-pays. Also on the list are increased child care expenses, household utility costs, and added commuting expenses for those who need to work out of the house and are avoiding transportation. Funeral costs also qualify, although Ilaria hopes that won't be necessary.

Applications will be reviewed by an independent committee of representatives from PH Cares, the firm's philanthropic arm, including Ilaria as diversity and inclusion head, the partner chairs of PH Balanced, the firm's corporate social responsibility head, and two tax attorneys.

While Paul Hastings raised a similar fund in 2017 in response to Hurricane Harvey, which caused catastrophic flooding in the Houston metropolitan area, this time eligibility has been expanded beyond staffers to non-partner attorneys. Also, for the first time, the firm is matching partner contributions.

"The firm's match is unlimited," said Paul Hastings chairman Seth Zachary. "We wanted that feeling of participation across our firm."

Nor has the firm specified a goal.

"It's so hard to be able to tell what the need will be so we didn't want to put a number in place," Ilaria said.

She added that fundraising has not been a hard sell for associates and staff, adding that leadership was asking practice group chairs to shoot for 100% partner participation. There's also the understanding that if need outstrips supply, they will launch another round of fundraising.

Zachary said the initiative did serve to demonstrate Paul Hastings' financial security going into an uncertain period. The firm grew revenues by 4.0% to $1.27 billion in 2019.

"Notwithstanding that this is a strong place to be now, people's lives are complicated, they have husbands and wives and kids," he said. "Our strong performance allows us to help people individually and collectively."

Zachary added that the firm showed a strong March and that demand in April looks to stay robust.

"Like everyone, the greatest measure to shore up the bottom line is to continue to build the practice," he said. "But we're looking at expenses and trying to be as conservative as we can."

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