Legal News

Big Law Firms Reverse COVID-19 Pay Cuts
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)

Easing of COVID-19 cut reductions has recently become a trend among law firms that took on austerity measures back in spring amid the financial crisis caused by the pandemic.

Holland & Knight is among the Big Law firms to confirm that it has reversed some of the austerity measures it had made this spring in response to the Covid-19 pandemic.

The firm announced that earlier this summer it has partially restored some of the salary cuts for associates and counsel and brought back some staff that had been furloughed. Holland & Knight announced it has also rolled back some of the draw reductions for non-equity partners.


The firm said in a statement its financial performance has been “stronger than we anticipated when we first instituted the salary cuts.”

“Although the COVID-19 crisis has affected the firm, the effects have been moderated through the continuing commitment of our attorneys and staff. The partial restoration of the cuts recognizes their efforts,” the firm said, before adding that it is weighing whether to restore compensation cuts and staff furloughs further.

In May Holland & Knight announced that it would be cutting partner draws, salaries for its associates, and furloughing staff. Staff salaries were downsized by a range of 10% to 15%, while associates, counsel, and senior professionals saw their salaries reduced by 17.5%.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

However, at the end of June, the firm had restored 30% to 50% of the original 17.5%, 15%, or 10% cuts, with all associates receiving a 30% restoration of their salaries a spokesperson said.

Several other big law firms follow suit and reversing course on cost-cutting measures.

Loeb & Loeb confirmed in a memo last week that it will be reversing salary cuts implemented in April amid the coronavirus crisis.

The firm will restore salary cuts by 60% effective September 1st, and it plans to award annual year-end bonuses, wrote chair, Kenneth Florin.

Florin wrote that “the impact of this pandemic on our business has not been as damaging as we had feared.”

“We are, however, very much aware that this pandemic is far from over and its overall impact not yet clear,” he added.

Income partners, senior counsel, associates, and senior staff at Loeb & Loeb saw their salaries reduced by 15% in April and for paralegals and other staff by 10%.

Florin said cuts of 20% to monthly capital partner draws announced in April will remain in place.

Kilpatrick, Townsend, & Stockton is also walking back on the austerity measures implemented during the early stages of the COVID-19, with the firm confirming Friday it will return to pre-pandemic levels on September 1.

The firm will also return all secretaries to full time, and it will begin returning some attorneys and staff to their full hours.

In April, Kilpatrick confirmed it would be reducing partner draws by 10% and cut salaries for staff and attorneys by 5%. The firm also cut secretary hours by 20%, though their hourly pay rate remained the same. It also announced a hardship fund for employees struggling as a result of the pandemic.

Other firms to unwind measures include Crowell & Moring, Katten Muchin Rosenman, Cadwalader, Wickersham & Taft, Fox Rothschild, K&L Gates, Baker Botts, Reed Smith, and Sheppard, Mullin, Richter, and Hampton.



Trademark Paralegal


MAVEN IP is looking for a detail-oriented full-time paralegal assistant with experience and kno...

Apply now

Associate Attorney


Plaintiff\'s Associate Attorney with a minimun 2 or more  years experience in New Jersey Person...

Apply now

Litigation Paralegal


Myers Law Group, LLC is in search of a paralegal with at least 1-2 years of experience in the area o...

Apply now

Remote Attorney Placement Professional


We are currently seeking a legal recruiter to join our Dallas office. The ideal candidate will be pe...

Apply now




Search Now

Litigation Associate Attorney

USA-LA-New Orleans

New Orleans office of a BCG Attorney Search Top Ranked Law Firm seeks litigation associate attorney ...

Apply Now

Labor and Employment Associate Attorney

USA-CA-Rancho Cucamonga

Rancho Cucamonga office of our client seeks labor and employment associate attorney with 1+ year of ...

Apply Now

Associate Attorney


Chicago office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 1-3 years ...

Apply Now

Most Popular


To Top