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Law360 (April 1, 2020, 1:21 PM EDT ) Joining a growing list of law firms, Baker Donelson Bearman Caldwell & Berkowitz PC has imposed temporary pay cuts and furloughed employees to reduce the financial impact of the COVID-19 pandemic, the firm confirmed Wednesday.
The Huntsville, Tennessee-born law firm said it has faced "some very difficult decisions" during the COVID-19 crisis and had taken steps to reduce the firm's financial burden.
"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," a firm spokesperson told Law360 in a statement.
The firm's statement continued: "This will be followed over the next few weeks by temporary salary reductions across the firm and with a furloughing of some employees."
Baker Donelson declined to answer questions about the extent of the pay cut or how many employees were put on leave.
"We are focused on doing all we can for all of our employees, while also ensuring uninterrupted service to our clients and meeting our temporary operating needs throughout this global crisis and beyond," the firm said in the statement. "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," the firm added.
Baker Donelson isn't the only law firm that has taken cost-cutting measures to ensure financial security. In an internal email obtained by Law360 Wednesday, New York law firm Fross Zelnick Lehrman & Zissu PC told all of its employees that their salary will be cut by 15% as the firm deals with the COVID-19 crisis.
"As part of these measures, as of April 1, all employees' salaries will be reduced by 15%. The partners are making more significant financial sacrifices, which is appropriate," the firm's executive committee said in the email. "The partners recognize that the salary reduction we are asking employees to take, while intended to be as modest as possible under the circumstances, may impose material hardships on people."
Throughout the week, a handful of law firms subsequently announced that they have taken temporary measures in response to work slowdowns.
Pryor Cashman LLP confirmed Tuesday that it has furloughed some associates. Cadwalader Wickersham & Taft LLP's leadership also announced Tuesday that it is pausing partner compensation distributions and reducing associate and senior administrative staff pay by 25% in response to the coronavirus crisis.
Womble Bond Dickinson on Monday said that it had decided to lay off and furlough some employees. Remaining staff and attorneys will see their pay cut by up to 10%, according to the firm, though those with lower levels of compensation will see smaller reductions.
Also on Monday, Reed Smith LLP announced that its leadership will slow partner cash distributions in the near term. Marshall Dennehey Warner Coleman & Goggin sent a firmwide email saying it is suspending its 4% employer 401(k) match until next year.
--Additional reporting by Emma Cueto and Aebra Coe. Editing by Jack Karp.
Update: This story has been updated with additional information about other law firms that have taken temporary measures.
Correction: An earlier version misstated where Baker Donelson is headquartered. The error has been corrected.
For a reprint of this article, please contact reprints@law360.com.
