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Law360 (May 14, 2020, 2:57 PM EDT ) In response to the ongoing COVID-19 pandemic, Ropes & Gray LLP has decided to offer buyout packages to its U.S. support team employees, while Finnegan Henderson Farabow Garrett & Dunner LLP said it plans to reduce attorney and staff salaries.
Ropes & Gray confirmed Thursday that it is offering a voluntary separation incentive program to all its support team employees in the states. Those who are approved for the buyouts will receive one week of severance pay per year of service, an additional four weeks' worth of pay, plus medical benefits through the end of the year, the Boston-based firm said.
"We're being proactive. We need to take steps now to address our new reality," a firm spokesman told Law360. "This offer of voluntary separation for our U.S. business support teams is one."
He added, "Our firm is strong economically, and as a community."
Attorneys and temporary workers are excluded from participating in the "support-only program," the firm said. Those who are eligible have until June 3 to apply and the firm's human resources department will notify applications of final decisions on June 5.
Ropes & Gray said the employees tapped for buyouts are expected to depart the firm between June 19 and Aug. 3. As of now, the firm has not taken any other cost-cutting measures in response to the coronavirus pandemic.
"This crisis is defined by its unpredictability. It's frustrating because we are so skilled in looking around corners for clients, but in this situation, no one can see everything clearly," the spokesman added. "You have to take this one day at a time. This is the proactive measure we are taking now."
Meanwhile, Finnegan's managing partner Anand Sharma and Chair Mark Sweet told Law360 on Thursday that their firm is implementing salary reductions for all lawyers and staff earning more than $75,000, which will take effect June 1.
The Washington, D.C.- based intellectual property firm is making 20% salary cuts for those earning $150,000 or more, 15% salary reductions for those earning between $100,000 to $150,000 and 10% salary cuts for employees earning between $75,000 to $100,000. Those earning less than $75,000 will not see reductions in pay, the firm said.
"Our hope is that any impact from COVID-19 will be minimal and, if so, we commit to offsetting these reductions," Sharma told Law360.
According to Finnegan's website, the firm has more than 350 lawyers and staff working in its 10 offices in North America, Europe and Asia.
In a joint statement, Sharma and Sweet said, "Incoming work remains steady, we are financially sound, but given everything we are seeing across the economy, we feel these changes will protect the long-term success of our team members and protect those most vulnerable to the risks we now face."
The two firms are the latest to join the growing ranks of law firms that have made financial adjustments in order to weather the economic impact caused by COVID-19. Two BigLaw outfits, Perkins Coie LLP and Faegre Drinker Biddle & Reath LLP, on Wednesday confirmed implementing pay cuts across their firms.
--Editing by Stephen Berg.
For a reprint of this article, please contact reprints@law360.com.
