Law Firm Industry Impacted by Court Closures and Slowdown in Deal Activity
The law firm of Hughes Hubbard & Reed has confirmed layoffs of certain attorneys and staff members after receiving a paycheck protection loan from the federal government. The firm released a statement to the ABA Journal, stating that "we decided in the early stage of the pandemic to keep our entire team intact for as long as we could, hopeful for a swift economic recovery. We were one of the more than 100 firms that decided in the early stage of the pandemic to apply for the [paycheck protection program] and were approved based on the [Small Business Administration] criteria. That money was used for its intended purpose, to save jobs during the worst of the crisis."
However, more than three months into the pandemic, the impact of court closures and a slowdown in deal activity have given the firm a better sense of how the pandemic has changed how they do business. As a result, they have made some difficult decisions on staffing to address the current environment. The statement also mentioned that they regret the hardship these steps cause as they, along with the industry, evolve to meet this changing environment.
Hughes Hubbard & Reed is one of many law firms to lay off employees despite receiving a payroll protection loan. Other firms have taken similar actions, including Bremer Whyte Brown & O'Meara, Schiff Hardin, and Curtis, Mallet-Prevost, Colt & Mosle. In April, Bremer Whyte Brown & O'Meara reported that 15% of its lawyers were furloughed or laid off and 20% of the staff was temporarily furloughed, and Schiff Hardin laid off a small number of staff members after receiving a loan. Curtis, Mallet-Prevost, Colt & Mosle also cut associate salaries by 25%.
Other firms that have taken employment actions while participating in the paycheck protection program include Day Pitney, Ice Miller, Kelley Drye & Warren, Pryor Cashman, Smith, Gambrell & Russell, Stroock & Stroock & Lavan, and Sullivan & Worcester. Day Pitney reportedly cut pay by 15% for lawyers and staff members and also cut hours for some work-at-home employees. Ice Miller furloughed "35 professional staff and timekeepers" and cut pay on a sliding scale for those who make more than $50,000 annually. Kelley Drye & Warren cut pay by 10% for lawyers and other employees making more than $100,000 annually. Pryor Cashman furloughed some associates, Smith, Gambrell & Russell cut pay by 10% for associates and other employees, Stroock & Stroock & Lavan cut pay by 15% for lawyers and staff members, and Sullivan & Worcester furloughed some employees and cut pay for associates and those making more than $66,000 per year by 5%.
According to Law.com, law firms were eligible to participate in the paycheck protection program if they had less than 500 employees. However, loan forgiveness will be reduced if firms cut pay by more than 25% for people making less than $100,000, or if they have done a bunch of layoffs. Firms will have to pay back part of the money if their headcount is less than the number reported when the loan originated.
About Harrison Barnes
Harrison Barnes is a prominent figure in the legal placement industry, known for his expertise in attorney placements and his extensive knowledge of the legal profession.
With over 25 years of experience, he has established himself as a leading voice in the field and has helped thousands of lawyers and law students find their ideal career paths.
Barnes is a former federal law clerk and associate at Quinn Emanuel and a graduate of the University of Chicago College and the University of Virginia Law School. He was a Rhodes Scholar Finalist at the University of Chicago and a member of the University of Virginia Law Review. Early in his legal career, he enrolled in Stanford Business School but dropped out because he missed legal recruiting too much.
Barnes' approach to the legal industry is rooted in his commitment to helping lawyers achieve their full potential. He believes that the key to success in the legal profession is to be proactive, persistent, and disciplined in one's approach to work and life. He encourages lawyers to take ownership of their careers and to focus on developing their skills and expertise in a way that aligns with their passions and interests.
One of how Barnes provides support to lawyers is through his writing. On his blog, HarrisonBarnes.com, and BCGSearch.com, he regularly shares his insights and advice on a range of topics related to the legal profession. Through his writing, he aims to empower lawyers to control their careers and make informed decisions about their professional development.
One of Barnes's fundamental philosophies in his writing is the importance of networking. He believes that networking is a critical component of career success and that it is essential for lawyers to establish relationships with others in their field. He encourages lawyers to attend events, join organizations, and connect with others in the legal community to build their professional networks.
Another central theme in Barnes' writing is the importance of personal and professional development. He believes that lawyers should continuously strive to improve themselves and develop their skills to succeed in their careers. He encourages lawyers to pursue ongoing education and training actively, read widely, and seek new opportunities for growth and development.
In addition to his work in the legal industry, Barnes is also a fitness and lifestyle enthusiast. He sees fitness and wellness as integral to his personal and professional development and encourages others to adopt a similar mindset. He starts his day at 4:00 am and dedicates several daily hours to running, weightlifting, and pursuing spiritual disciplines.
Finally, Barnes is a strong advocate for community service and giving back. He volunteers for the University of Chicago, where he is the former area chair of Los Angeles for the University of Chicago Admissions Office. He also serves as the President of the Young Presidents Organization's Century City Los Angeles Chapter, where he works to support and connect young business leaders.
In conclusion, Harrison Barnes is a visionary legal industry leader committed to helping lawyers achieve their full potential. Through his work at BCG Attorney Search, writing, and community involvement, he empowers lawyers to take control of their careers, develop their skills continuously, and lead fulfilling and successful lives. His philosophy of being proactive, persistent, and disciplined, combined with his focus on personal and professional development, makes him a valuable resource for anyone looking to succeed in the legal profession.
About BCG Attorney Search
BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.
Harrison Barnes does a weekly free webinar with live Q&A for attorneys and law students each Wednesday at 10:00 am PST. You can attend anonymously and ask questions about your career, this article, or any other legal career-related topics. You can sign up for the weekly webinar here: Register on Zoom
Harrison also does a weekly free webinar with live Q&A for law firms, companies, and others who hire attorneys each Wednesday at 10:00 am PST. You can sign up for the weekly webinar here: Register on Zoom
You can browse a list of past webinars here: Webinar Replays
You can also listen to Harrison Barnes Podcasts here: Attorney Career Advice Podcasts
You can also read Harrison Barnes' articles and books here: Harrison's Perspectives
Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.
Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.
To read more career and life advice articles visit Harrison's personal blog.
