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Law360 (August 25, 2020, 10:55 PM EDT ) Loeb & Loeb LLP on Tuesday told its attorneys and staff that the firm would be significantly reducing the pay cuts it instituted due to the COVID-19 pandemic, saying in a firmwide email that the economic fallout "has not been as damaging as we had feared."
In April, the firm cut attorney and staff pay by up to 20%, a move Loeb & Loeb said at the time was designed to stave off layoffs and furloughs as the firm braced for economic hardship.
Next month, those cuts will be decreased by 60%, the firm's chairman Ken Florin said in Tuesday's email. For instance, if an employee's pay was reduced by 10% in April, the reduction will decrease to 4% in September, he said.
On top of that, year-end bonuses will be awarded in the same way as in previous years, Florin said.
Reductions in capital partner's draws will remain in place, he added.
"We are pleased to be in a position to be able to take these steps," Florin said, though he noted that the pandemic is far from over and its overall impact is not yet clear.
"We will continue to monitor its bearing on our business and the broader economy, and keep you apprised of further developments and changes, if any," Florin said.
The rollbacks apply to all associates, income partners, counsel and staff, according to the firm.
Back in April, Loeb & Loeb slashed capital partners' monthly draws by 20%. Income partners, senior counsel, of counsel, associates and senior staff — like senior administrative and management team members — had their pay cut by 15%. And paralegals and other staff saw 10% cuts.
Loeb & Loeb is the latest in a string of pay restorations among BigLaw firms that implemented cost-saving measures earlier this year. On Monday, Florida-based Holland & Knight LLP confirmed that it had partially rolled back the salary reductions it implemented in the spring due to the COVID-19 pandemic, similarly saying its financial position was stronger than anticipated.
Also this week, London-based Kennedys LLP said it would proceed with salary increases that had been postponed due to the COVID-19 pandemic, saying it had a strong fiscal year.
On Friday, Stoel Rives LLP said that associate and of counsel pay will go from being reduced by 20% to reduced by 10% and partner distributions will be reduced by 15% instead of 20% starting Sept. 1.
--Additional reporting by Emma Cueto and Lauren Berg. Editing by Emily Kokoll.
Clarification: The story has been updated to clarify who will be impacted by certain pay increases.
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