Holland & Hart, LLP is the latest big law firm to walk back on the salary cuts it had put in place earlier this summer amid the COVID-19 pandemic.
The Colorado-based firm announced in a statement on Tuesday, it is returning all employees to their full 2020 salaries and the equity partners’ third-quarter profit distribution to the full amount.
The firm also reinstated employees match to 401(k) contributions this month and is a promising a sizeable bonus to reward attorneys and staff “who contribute to the firm at a high level” at the end of the year.
Holland & Hart implemented some austerity measures in May in response to the economic disruption and uncertainty caused by the pandemic.
“Although the firm had one of its strongest financial years in 2019 and an equally robust start in the first quarter of this year, these measures were taken to protect our people and the short- and long-term business interests of the firm. Compensation cutbacks, combined with significant expense-saving and expense deferral initiatives, allowed the firm to avoid any layoffs.” the firm said in a statement.
At the beginning of June, Holland & Hart had reduced the paychecks of non-equity, salaried attorneys by 15% and cut staff salaries at a level based on their compensation, while those making less than $60,000 did not see a cut.
However, at the beginning of September after “strong financial performance” the firm ended its salary reductions.
“After a significantly strong financial performance the past few months, we are pleased to announce that effective this month, the firm will return all employees to their full 2020 salaries and 401(k) matching contributions will be reinstated. The firm’s third-quarter profit distribution to equity partners was restored in full. Finally, the firm has reserved a significant bonus pool to reward at the end of the year those staff and lawyers who contribute to the firm at a high level.”
“We are grateful to the incredible dedication of our lawyers and staff who continue to demonstrate resilience and a willingness to adapt to change. More than ever, we value our relationships with our clients and appreciate the trust and confidence they have placed in our firm as we have all embraced ways to connect and work together in these challenging circumstances.”