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Law360 (May 29, 2020, 9:39 PM EDT) -- Stroock & Stroock & Lavan LLP on Friday confirmed that pay cuts and buyouts are on deck for its attorneys and some of its staff, the latest in a list of firms to cut pay due to economic hardship spurred by the COVID-19 pandemic.
Starting June 1, equity partners will see a 20% reduction in their monthly draws, while contract partners will see a reduction of 15% in their draws, the firm said. All other lawyers, as well as staff earning more than $75,000 annually, should expect 15% cuts to their pay. None of those staff members' pay would be brought below the $75,000 threshold, Stroock noted.
The firm said it will also be offering buyouts for employees who want to retire early or who may not want to come back to the office when remote work ends.
At the same time, Stroock said attorneys could see those pay reductions repaid if they rack up enough billable hours.
In a statement provided to Law360 on Friday, Stroock said it would be regularly reviewing its associates' hours and may restore their compensation at the time of those reviews.
"In addition, we have let staff and attorneys know that, subject to firm needs, we are open to reduced schedules for individuals who voluntarily elect to go that route," Stroock said.
The firm said it is grateful to have been able to forgo the cuts for 12 weeks and fully compensate all of its employees during that time. It added that it hopes the reductions will be temporary.
"At this juncture, we deemed it prudent to take certain measures to insulate the firm and its workforce from the economic havoc caused by the pandemic," Stroock said. "While salary reductions are never ideal, we prefer to be proactive in light of unprecedented economic challenges in the industry and across the globe."
A slew of firms have already instituted pay and job cuts in the midst of the pandemic, including Troutman Sanders LLP, which said last week that it would be cutting attorney and staff pay by as little as 2% and as much as 18.5%, depending on existing salaries.
Also last week, Dorsey & Whitney LLP said it was planning to lay off a "limited number" of employees and cut pay for nonpartner attorneys and staff by between 10% and 20%. Staff members earning less than $150,000 a year won't be affected, the firm said.
--Additional reporting by Aebra Coe. Editing by Kelly Duncan.
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