Law Firm Chaos - Deferred Start Dates, Shorter Summers, Layoffs, Salary Freezes, & MORE!

Welcome to Law Firm Chaos

2009-04-23T21:54:00.001-07:00

We are tracking information about how the V100 firms (see Vault Rankings) are handing this financial crisis. Some are freezing salaries and saving jobs, while others are resorting to layoffs, shorter summer programs, and deferred start dates. Some firms are doing all of the above in an effort to remain fiscally responsible in these tough times (or if you are cynical, an attempt to preserve or increase PPP). We hope this site is useful for you, especially for those who need to make a decision about which offer to accept, whether you are a law student or individual looking to lateral to a new firm. Good luck to everyone, especially those who have experienced or will experience shorter summer programs, rescinded offers, deferred start dates, salary cuts or freezes, and layoffs. To date, 3.4% (0r approximately 3500) of V100 attorneys have been laid off and 75% (or approximately 3800) of the incoming first year associates will have a few extra months to travel the world before starting a BigLaw career (hopefully!).

Please send tips to tips@lawfirmchaos.com. We are especially interested in copies of any letters or emails sent out regarding the information tracked on this website.

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Click Here for a Stipend Scattergram

Click Here for a Start Date Scattergram & Bar Chart

Click Here for the Vault 100 Summary - Reaction to the Financial Crisis
Click Here for the Vault 100 Summary - Ranking by Stipend Amount
Click Here for the Vault 100 Summary - List of Firms That Laid Off First Year Associates
Click Here for the Vault 100 Summary - List of Firms That Cut Salaries

V100 Summary - Ranking by Stipend Amount

2009-04-22T19:04:00.001-07:00

Vault Top 50 UK Law Firms Summary - Reaction to the Financial Crisis

2009-04-20T09:52:00.000-07:00

Leading Midsize Firms Summary - Reaction to the Financial Crisis

2009-04-20T09:27:00.000-07:00

V100 Summary - Salary Cuts

2009-04-17T15:26:00.000-07:00

How to Read the Spreadsheet

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The spreadsheet posted below includes a summary of the following information for all V100 law firms:

1) Rescinded Offers: This column indicates whether the law firm rescinded offers for 2Ls or 3Ls.

2) Summer Program: This column indicates the length of the upcoming summer program for the class of 2010. We will also be adding the menu for the summer program, which does not look good. There are rumors that the summer associate lunch budget is $4.50 per meal.

3) Start Dates and Stipend Information (3 Columns): We did not include advances because it really isn't a benefit; just a loan and not worth mentioning. If the stipend amount is followed by "if PI", the stipend is only available if the associate secures a public interest position for the deferral period. If the stipend amount is followed by "if CC", the stipend is only available if the associate secures a legal position with a corporate client of the firm for the deferral period. Finally, if there is more than one option, the soonest start date is typically available to all associates and the longer deferral(s) is available to associates who voluntarily defer their start date.

4) Stipend Information (4 Columns): These columns includes both bar stipends and signing bonuses in major markets, the maximum number of months an associate is deferred (even if by choice), the total stipend amount (Bar Stipend + Deferral Stipend), and the total stipend amount by month. In most cases the firm will only reimburse associates for bar expenses. In such cases, the Bar Stipend column will indicate "Bar Expenses" only. If a dollar amount is listed, it means that the firm offers associates a flat stipend to cover bar expenses. If the bar expenses are less than the stipend amount, the associate gets a nice little bonus.

5) Salary Information (3 Columns): The next few columns list the first year salary in major markets, whether the law firm froze salaries, and the clerkship bonus amount. We are getting some tips that some firms are abandoning the lock step salary structure and reducing salaries for some associates within a class. We have already seen firms freeze salaries and then offer a raise only to those who reached a certain target for hours billed, but it appears as though some firms are drawing the line based on other factors. In some cases only individuals who barely escaped a lay off will end up experiencing a salary freeze.

6) Incoming Associates (2 Columns): The next two columns lists the number of new first year associates that are scheduled to start sometime between August 2009 and forever and the number of Summer Associates for 2009 as reported on NALP. NALP appears to only report the number of incoming and summer associates in the United States so the numbers may be lower than the actual amount. We are currently searching for a more accurate estimate.

7) Layoffs (3 Columns): The next three columns represent the number of attorney and staff layoffs that have been announced publicly and whether the firm laid off any first year associates. We understand that many firms are engaging in stealth layoffs, but do not have any means at this time to confirm this behavior. If you have information about layoffs, please let us know.

8) Firm Information (2 Columns): The last set of columns includes information about the firm such as the total number of attorneys and the location of the headquarters. Additional information will be posted soon.

If you have additional information, please send the information to tips@lawfirmchaos.com (with source or pdf copy of the letter or email if available). The purpose of this sheet is to provide associates with a means to evaluate how each firm handled this financial crisis. We will add additional information if it would be helpful to make such a determination. If you have ideas for additional content that is accessible on the internet, please let us know in the comments.

V100 Summary - Reaction to Financial Crisis

2009-03-31T10:06:00.000-07:00

Click here if you need help interpreting the sheet.

Firms That Laid Off First Year Associates

2009-03-24T22:09:00.000-07:00

Deferral Stipend Scattergram

2009-03-09T21:20:00.000-07:00

Start Date Scattergram & Bar Chart

2009-03-08T14:53:00.000-07:00

The Correlation Coefficient for the Earliest Start is .31 which means that there is a very slight correlation between the V100 rank and the earliest start date. The slight correlation is due to the slightly earlier start dates for the V20 firms. Outside of the V20, almost every firm deferred to at least January 2010. The same Correlation Coefficient for the V50 is .48.

The Correlation Coefficient for the Latest Start is -.16 which means there is really no correlation. The coefficient is negative because there are more firms in the upper half of the V100 firms offering optional year long deferrals than firms in the lower half.