Law Firm Layoffs Could Bring More Suits and ‘Salacious Allegations’

Some labor and employment lawyers warn that law firms could face more lawsuits from laid off employees.

The suits could air “salacious allegations that once remained hidden within firm walls,” according to the Daily Journal (sub. req.). To help avoid suits, law firms need to follow the advice they give their own clients, the story says: Use standard termination procedures, give employees accurate reviews, and hand out generous severance packages.

The article quotes John Barber, a labor and employment partner at Lewis Brisbois Bisgaard & Smith. "Lawyers are litigious by nature, so law firms should be particularly sensitive to protecting themselves when they lay people off," he said.

The article cites three recent lawsuits from laid off employees:

• A suit by Henry Har, a former associate at Nixon Peabody, who claims the culture at the firm’s Los Angeles office was racist, sexist and homophobic.

• A suit by Gary Green, a former associate at Skadden Arps Slate Meagher & Flom, who claims he was fired for giving a negative review to a more junior associate that had partners fearing malpractice claims.

• A suit by Margot Jackson, a former real estate attorney at Allen Matkins, who alleges she was fired because of her race and gender.