Littler Mendelson, (Photo: Jason Doiy/ALM)

Littler Mendelson, the nation's largest labor and employment firm, is one of the latest big firms to announce pay cuts for attorneys and staff in response to economic uncertainty from the pandemic. The salary reductions will range from 4% to 20%, with equity shareholders taking the largest cuts.

While Littler is not laying off or furloughing any employees, it will cut pay by 50% on June 5 for staff who are unable to work remotely, the firm said in a statement Tuesday.

The expense trimming at Littler and other national labor and employment firms come even as these firms have seen a rush of employer questions on workplace issues during the pandemic. Other L&E firms cutting expenses include Fisher & Phillips, which has cut pay for lawyers and staff while furloughing some non-remote employees, and Ogletree, Deakins, Nash, Smoak & Stewart, which has furloughed some staff and reduced hours for others who can't work remotely.

Littler's co-presidents, Thomas Bender and Jeremy Roth, said in a statement that "financial uncertainty" from the COVID-19 pandemic prompted the action. The decision "was not taken lightly," the firm co-leaders said. "It was based on weeks of in-depth analysis and financial modeling to assess the potential impact of COVID-19 on our business and the best path forward."

"We arrived at an approach that shares the burden across the firm at all levels," they said.

Littler is taking a staggered approach to the pay reductions. On May 8, equity shareholders will take a 20% cut to compensation, while salaries for nonequity shareholders and staff making above $300,000 will be cut by 15%. (For nonequity partners and staff paid at this level in Mexico and Canada, these reductions will not take place until May 15.)

Equity shareholders make up just over 80% of Littler's total shareholders. The firm, which has about 1,100 U.S. lawyers, reported 396 equity shareholders and 85 nonequity shareholders last year for a total of 481.

The cuts for the highest earners will be followed June 5 by 10% reductions on average for the firm's other lawyers and staff. Pay cuts will range from 4% for those making $50,000 or less to 13% for those making over $200,000 up to $300,000.

"We believe these measures will help us maintain our financial strength while ensuring we have the right resources in place to prepare for the months ahead and to continue to effectively serve our clients," Bender and Roth said in the statement. "We are deeply grateful to our Littler team for their understanding and patience during this extraordinarily difficult time."