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Legal Sector’s Job Gains Stall as Big Law Firms Lay Off Staff

Sept. 4, 2020, 5:50 PM

Here are the day’s top coronavirus stories from the team at Bloomberg Law:

  • LEGAL SECTOR JOBS: The modest uptick in legal employment over the summer has stalled, reflecting struggles by the sector with continued pandemic fallout as some big firms this month announce layoffs. Law firms and other offices added no jobs by mid-August, the Labor Department reported Friday.
  • PAID-LEAVE RULE: The U.S. Labor Department sent an updated rule on coronavirus-related paid leave requirements to the White House for final review, setting up the administration’s first response to a court decision that shot down key aspects of the original regulation.
  • REVERSING CUTS: Hogan Lovells will reverse the 10% salary cuts that began on June 1 for its U.S. associates, and will reinstate the deferred salary review process for its U.K. and Asia Pacific associates and business services teams.

Editor’s Top Picks

State Farm Beats Chiropractor’s Suit Over Denied Virus Coverage
Two State Farm affiliates ducked a chiropractor’s proposed class action over denied claims for pandemic-related business losses, after a federal judge in Michigan found the insurance policy doesn’t provide coverage for them.

U.S. Will Have Enough Ventilators for Next Wave With New Orders
U.S. officials expect to have enough ventilators to care for Covid-19 patients and possible “second waves” of the virus after the government receives about 130,000 of the machines by the end of October.

Virgin Atlantic Cuts More Jobs, Halving Pre-Virus Payroll
Virgin Atlantic Airways Ltd. will eliminate 1,150 more jobs to preserve its rescue funding as demand for long-distance flights remains depressed and Britain winds down its worker furlough program.

Hospitals Trail Rebound in Hiring as Private Insurance Declines
Hospitals are lagging the rest of the health-care industry in hiring workers as executives navigate a changing landscape for insurance coverage.

Illinois Covid-19 Crowd Limits With Religious Exemption Upheld
An order issued by the governor of Illinois aimed at containing the spread of Covid-19 gives preferential treatment for the exercise of religion, but that doesn’t mean it violates the First Amendment, the Seventh Circuit ruled Thursday.

Nixon Peabody Lays Off Some Furloughed Workers As Big Law Cuts
Nixon Peabody has turned some of its earlier furloughs put in place due to the pandemic into permanent layoffs, a firm spokesperson confirmed Thursday.

Virginia Senate OKs Liability Shield For Adult Care Facilities
Adult care providers would be protected from Covid-related lawsuits under a bill the Virginia Senate unanimously approved on Thursday.

Click here for updates on how federal courts are operating during the pandemic.

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Editor’s Note: The Bloomberg Law news team has been closely covering the legal, regulatory, business, and tax implications of the coronavirus pandemic. This daily email highlights the top stories of the day, across practice areas. To unsubscribe, please adjust your Bloomberg Law newsletter settings. For assistance, contact our help desk at 888-560-2529 or help@bloomberglaw.com.

To contact the reporter on this story: Molly Ward in Washington at mward@bloomberglaw.com

To contact the editor responsible for this story: Meghashyam Mali at mmali@bloombergindustry.com

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