Holland & Hart is the latest law firm to cut attorney and staff salaries as the legal sector seeks to save cash amid the coronavirus economic fallout.
The Denver-based firm announced a series of compensation cuts earlier this month to “allow the firm to weather” uncertainty around the virus and position it “for success as the economy ultimately improves,” the firm said in a statement on Tuesday.
Holland & Hart may scale back these measures at any time during the year based on its financial performance, it said.
Equity partners will have their profit distributions cut so that they will incur the highest percentage reduction in expected compensation over the year, the firm said.
All salaried non-equity attorneys were to see a 15% pay reduction starting this month, while employees making more than $100,000 have had their salaries reduced by 7.5%.
Paychecks for employees making between $60,000 and $99,999 will be 5% lighter, while those making under $60,000 won’t see any deductions. The firm has also suspended the employer portion of its 401(k) matching program.
The Holland & Hart cuts are the latest by law firms that in early March and April began cost-cutting measures to shore up cash as the pandemic began impacting the U.S. economy as stay-at-home orders triggered widespread layoffs and business closures.
In addition to compensation cuts for equity partners and temporary pay reductions for attorneys and staff ranging from 5% to 10%, Jackson Lewis implemented a staff furlough program for those whose roles were impacted by its remote working plan in April. It also entered eligible business services and staff members into a work-share program that allowed the firm to retain staff on a reduced schedule with no impact on their compensation.
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