Sheppard Mullin Furloughs 33 Staff Members
The firm said it expected the employees, who cannot perform their duties remotely, to return to work in 60 to 90 days and they will not experience reduced compensation thanks to a bridge fund established by partners and senior management.
April 13, 2020 at 03:42 PM
2 minute read
Photo: Diego M. Radzinschi/ALM
Sheppard, Mullin, Richter & Hampton announced Monday it was furloughing 33 of its 823 staff members, making it the latest law firm to react to the coronavirus pandemic with slashes to its workforce.
The furloughs apply to team members who cannot do their jobs remotely, including receptionists, support services and file center employees, the international law firm said in a statement. The affected staff members had been on payroll during the last four weeks when the firm transitioned to working from home. The employees were told they could expect to return to work in 60 to 90 days.
The firm declined to comment further on the furloughs, but in a statement said none of the employees would experience reduced compensation. In the lag time between when an employee is furloughed and when they begin receiving unemployment benefits, partners and senior management have donated to a new bridge fund that will provide grants equivalent to furloughed employees' take-home pay.
Sheppard Mullin also said it would pay for full medical benefits and would waive affected employees' insurance contributions.
"Our goal is to treat all of the Sheppard Mullin family fairly and with consideration, while making sure we remain a strong firm," the firm said. "Aside from the furlough of these staff members, we have made no other decisions regarding additional furloughs or a reduction in hours or compensation. We have no intention of doing any layoffs."
The staff cuts come on the heels of a strong year of growth at the firm. Sheppard Mullin's gross revenue in 2019 increased 13%, to $799 million, while revenue per lawyer crossed $1 million. The firm's head count grew 9.2%, to 780 lawyers.
Read More:
Pay Cuts, Layoffs, and More: How Law Firms Are Managing the Pandemic
As US Unemployment Soars, Legal Industry Hopes to Avoid Widespread Layoffs
Sheppard Mullin Revenue Jumps 13% Amid Growth in Equity Tier, Texas Launch
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