Connecticut Law Firms Begin Announcing COVID-19-Related Cuts
As major firms in New York, Washington, D.C., and California began making cuts to offset losses, Connecticut firms began to follow suit this week.
April 10, 2020 at 01:18 PM
4 minute read
While Big Law firms across the country have been announcing reduced hours, furloughs and even layoffs in recent weeks to counteract havoc wreaked by the COVID-19 pandemic, Connecticut firms have not been as quick to announce cuts—until this week.
As major firms in New York, Washington, D.C., and California began making cuts to offset losses, Connecticut firms began to follow suit. Almost simultaneously, announcements from Nutmeg State firms Shipman & Goodwin, Robinson & Cole and Day Pitney were released to the Connecticut Law Tribune this week, acknowledging either furloughs, reductions in hours and pay or a combination.
The bottom line in the three firms' statements is they have begun making sacrifices in order to not only balance the books, but to protect their attorneys and staff by keeping them on the job.
Shipman & Goodwin's statement, released to the Tribune Thursday afternoon, acknowledged the firm has initiated furloughs and "broad-based" cuts to salaries for both lawyers and staff to offset this year's realized and forecasted losses.
"While the firm is continuing the uninterrupted provision of high-quality legal services to our clients, we must do so in a manner that provides for the health and safety of firm personnel," the statement read. "On March 16, 2020, we made the decision to move to a full telework model to provide for the well-being of every member of our community. Every decision we make contemplates our commitment to our staff, clients and partners—this includes a responsibility to maintain a strong business."
Shipman & Goodwin has had to make "some very difficult decisions that negatively impact members of the Shipman family, about whom we care deeply," the statement continued. "So, in what has rapidly become a very challenging business environment, we have made the decision to furlough some members of our team and implement broad-based salary reductions, each of which impacts both lawyers and administrative personnel. This has been a painful decision, but a necessary one, which we believe offers the best opportunity to bring the team back together in better times."
Shipman & Goodwin partner and general counsel Anne H. Littlefield provided Thursday's statement to the Tribune. She said the firm is not going into detail about staff members affected by recent management decisions. "We will have no further information to add beyond this statement," she noted.
Jessica Altieri, communications manager at Hartford's Robinson & Cole, also released a brief statement Friday morning regarding cutbacks. "We have furloughed a small number of staff team members to align our staffing positions with our needs while we are working remotely," the firm stated. "To ease the impact on those furloughed, the firm will continue to cover the employer portion of group health, dental and vision insurance, as well as monthly group life insurance premiums during the furlough period."
East Coast firm Day Pitney also released a statement Thursday, announcing a 15% pay cut for all attorneys and some staff; a temporary reduction in working hours to 60% of normally scheduled time; and "significant reductions" to partner draws, along with the suspension of the firm's scheduled April supplemental distribution.
"In the midst of the COVID-19 pandemic, like most businesses, Day Pitney has been faced with some very difficult decisions," said Partner Thomas Goldberg in a written statement. "While the cost reductions are spread among all groups within the firm, we recognize that the partners must bear the greatest share of the burden. We intend that the partners' share of any shortfall this year will exceed that of the firm's employees."
Goldberg said Day Pitney's decisions were made in an effort to avoid losing any employees. "We have not taken these steps lightly and recognize that these reductions may impose material hardships," he noted. "We are implementing these measures to preserve the financial health of the firm, to assure that we remain well-positioned to serve our clients, and to mitigate the need for any type of layoffs or furloughs. We remain confident in the long-term success of our firm."
Attorneys and firms who wish to make announcements should email information to [email protected].
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