Baker Donelson temporarily cuts pay, furloughs some employees because of COVID-19
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Baker Donelson is imposing temporary pay cuts, reducing partner draws, and furloughing some employees because of the financial impact of the COVID-19 epidemic.
Above the Law had coverage.
Baker Donelson confirmed the measures in this statement provided to the ABA Journal: “We have undertaken a number of measures to ensure the financial stability of the firm moving forward, which includes shareholder reduction in draws and salary that have already been implemented,” the statement said. “This will be followed over the next few weeks by temporary salary reductions across the firm and with a furloughing of some employees. … Our hope is that, once this crisis subsides, we will eventually be able to bring the furloughed team members back to Baker Donelson. Until then, we are providing them with support to help minimize the impact of what we know is an extremely trying situation, particularly in these highly uncertain times.”
Other law firms that have taken temporary measures in response to work slowdowns include:
• Pryor Cashman, which has furloughed some associates.
• Cadwalader, Wickersham & Taft, which is imposing temporary pay cuts and pausing partner distributions. Legal staff members, including associates, will see a 25% pay cut, as will senior administrative staff members earning more than $100,000 per year. Other administrative staff will see a 10% pay cut.
• Womble Bond Dickinson, where some employees are being laid off and furloughed. The firm has implemented temporary pay cuts of up to 10% for others. The percentage cut will be less for lower-paid employees.
• Reed Smith, which is temporarily reducing partner distributions.
• Marshall Dennehey Warner Coleman & Goggi, which is suspending its 4% employer 401(k) match until next year.