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Law360 (April 2, 2020, 9:20 PM EDT ) As some law firms take steps to cut salary costs amid the economic fallout from the COVID-19 pandemic, Cahill Gordon & Reindel LLP has reportedly reached out to associates to assure them that the firm has no plans to furlough attorneys or reduce salaries.
In an email to all associates from the Cahill Gordon executive committee, the firm said that it had just had the best first quarter in firm history and that it was not considering the measures seen at some other firms, according to a Thursday report by Above the Law.
Representatives for Cahill Gordon did not immediately respond to requests for comment Thursday.
While Cahill Gordon is reportedly not considering furloughs and salary cuts, other firms have already implemented them.
This week, Cadwalader Wickersham & Taft LLP announced that it is pausing partner distributions and cutting associate and staff pay; Pryor Cashman LLP said it has furloughed some associates; Reed Smith LLP explained it will slow partner cash distributions; Baker Donelson Bearman Caldwell & Berkowitz PC announced furloughs and pay cuts; and Womble Bond Dickinson said it is laying off some employees and reducing pay for others.
Other firms have taken less drastic steps, such as suspending 401(k) matches, as Marshall Dennehey Warner Coleman & Goggin has done.
Industry observers expect that more firms will follow as the economic impact of COVID-19 deepens.
However, other firms appear to be trying to proceed as usual. Some have indicated they plan to move forward with their summer associate programs this year. And at least one firm has moved in the opposite direction; Southern California-based Hueston Hennigan LLP said it plans to give employees special bonuses to help them deal with the effects of the virus.
--Editing by Alanna Weissman.
For a reprint of this article, please contact reprints@law360.com.
