Cahill Suspends Summer Associates Program But Offers 'Pay in Full' and Jobs Later On
The New York firm is still on track to pay hundreds of thousands of dollars to summer associates stuck at home.
April 08, 2020 at 02:48 PM
4 minute read
Putting off summer associate programs amid the coronavirus pandemic doesn't always mean a big cost savings for firms.
Cahill Gordon & Reindel announced it was suspending its summer associate program but will offer jobs upon graduation in 2021 to would-be participants and still pay the 30 summer associates "in full for the summer." The New York-based firm pays summers $3,600 per week, meaning the firm is still on track to pay hundreds of thousands of dollars to summer associates stuck at home.
In a statement, Cahill said it would give the class a chance to assist remotely with the firm's pro bono work over the summer, and if risks abate enough to make in-person work possible, it would "find appropriate ways" to resume the program for "some portion of the summer."
"We made this decision because of the continuing uncertainty around the coronavirus pandemic and the ongoing shelter at home directives from governmental and health authorities," the firm's statement said. "We wanted to give them peace of mind that the firm is supporting them in this difficult moment."
Vigorous debate in the legal industry persists about what firms should do with their summer associate programs, which often aim to immerse students in the life of a law firm, and are heavy on social interaction, which has been sharply reduced amid the pandemic. COVID-19 has also disrupted other rites of passage for rising lawyers, such as on-campus interviews and the bar exam.
Cahill's approach is similar to one advocated by Hugh Simons, a consultant and contributor to Law.com, although it left the door open to resuming the program as circumstances change. "I believe that canceling is simply prudent," he wrote.
The firm's move comes after it recorded a strong 2019, growing its revenue to $388 million and its profit per partner to $3.8 million. The firm is known for advising lenders on leveraged loans and junk bonds. According to Bloomberg data, its dominance in lender-side representations in leveraged finance persisted in the first quarter of 2020.
Some law firms are still contemplating what to do with their summer associate programs, which often start in May and run for about 10 weeks. Some firms have canceled summer associates due to cost concerns, among other factors. Boies Schiller Flexner and some other firms have indicated they will move forward with their programs as planned, but remotely if need be. Others, including Cooley, have said they will delay the start of their programs.
Nathan Peart, a legal recruiter in Major, Lindsey & Africa's associate practice group, said in surveys his firm conducted around late March and early April, over 50% of firms in New York and Southern California said they weren't thinking of canceling their summer associate programs. Another 42% in each market said they were unsure and 5% to 6% said they were considering canceling.
Chicago respondents were more negative, with 29% not considering cancellation, 59% unsure and 12% thinking about canceling their program.
"There's still a lot of positivity in making this happen," Peart said. "There's still a lot of uncertainty over how they're going to make it work, but I think the majority of them are still going to do something."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrump Win Ignites Global Legal Market: Lawyers Prepare for High Demand & Uncertainty
Simpson Thacher Partner Moves to Vinson & Elkins as Co-Head of Strategic M&A
3 minute readLaw Firms Mentioned
Trending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Election 2024: Nationwide Judicial Races and Ballot Measures to Watch
- 3Guarantees Are Back, Whether Law Firms Want to Talk About Them or Not
- 4How I Made Practice Group Chair: 'If You Love What You Do and Put the Time and Effort Into It, You Will Excel,' Says Lisa Saul of Forde & O'Meara
- 5Abbott, Mead Johnson Win Defense Verdict Over Preemie Infant Formula
- 6How Much Does the Frequency of Retirement Withdrawals Matter?
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.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250