“In the wake of the market disruption caused by the COVID-19 outbreak, a number of employers have announced temporary salary reductions as a means of conserving cash, and thus demonstrating sound stewardship. This memorandum discusses key considerations for companies and boards that are contemplating a salary reduction program for members of executive management,” discuss John J. Cannon III, Doreen E. Lilienfeld, Gillian Emmett Moldowan, Matthew Behrens and Max Bradley in Shearman & Sterling’s Perspectives.

“Companies considering implementing a base salary reduction for executives should begin with a careful review of their existing contractual requirements to determine whether the reduction could trigger the right of an executive to terminate employment for ‘good reason.’ ‘Good reason’ (or constructive termination) rights may arise under employment agreements or in severance plans. ‘Good reason’ triggers may also engender consequences under equity or incentive compensation arrangements and deferred compensation plans.”

“Each arrangement that includes a ‘good reason’ construct should be analyzed to determine whether the contemplated reduction in base salary could trigger an argument of constructive termination. The company ought to consider whether the salary reduction is significant enough to cause a trigger if the ‘good reason’ definition is qualified by materiality and if ‘good reason’ is triggered when the salary reduction is part of an across-the-board program that reduces salaries for the entire company or similarly situated employees. If it is determined that the salary reduction could trigger ‘good reason,’ employers should seek consent and waivers from the executives before proceeding.”

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“There is nothing much better for a litigator/baseball fan than when these two interests collide.  One of the highpoints of my legal career was successfully representing a major league baseball player (Pat Kelly) in his salary arbitration with the Yankees.  So I was pretty excited when the case Olson, et al. v. Major League Baseball, et al. was filed this year in the SDNY.  Maybe not as excited as if I would have been if I were involved in the case myself, but in these times we have to take what we can get,” discusses Edward H. Rosenthal in Frankfurt Kurnit Klein + Selz‘ blog.

“Olson was a putative class action brought by individuals who participated in DraftKings fantasy baseball competitions. The plaintiffs sued Major League Baseball (“MLB”), MLB’s marketing entity called Major League Baseball Advanced Media, L.P. (“MLBAM”), the Houston Astros and the Boston Red Sox alleging that plaintiffs’ fantasy baseball efforts had been harmed by virtue of the electronic sign-stealing scandal that has been revealed over the past few months. In a nutshell, the Astros were found to have devised a system using cameras to relay the signs the opposing team’s catcher was giving to its pitcher by sending the signs to a player or coach situated behind the Astros dugout.  The recipient of the video would then convey the pitch information to the batter by banging on a trash can.   It is undoubtedly true that a batter’s knowledge of the pitch about to be thrown enhances his chances of a successful time at the plate.  While sign-stealing is not in and of itself illegal (it’s a time honored tradition for baserunners to try to figure out the sign being given by the catcher and then convey that information to the batter), the rules of baseball specifically prohibit electronic sign stealing.”

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“As mentioned in previous articles, the ongoing COVID-19 pandemic has substantially impacted the legal profession. Economic issues have affected the need for legal services, which has forced law firms to reduce headcount, lower salaries, and take other efforts to weather the storm. However, based on my own experience, some practice areas seem to be expanding in the current environment, and other practice areas are struggling because of COVID-19,” writes Jordan Rothman in Above the Law’s Biglaw.

“If attorneys have a good sense of the practice areas that are expanding and contracting in the current environment, they can best weather the storm of COVID-19.”

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“Baker Donelson is imposing temporary pay cuts, reducing partner draws, and furloughing some employees because of the financial impact of the COVID-19 epidemic,” reports Debra Cassens Weiss in ABA Journal’s Latest News.

“Baker Donelson confirmed the measures in this statement provided to the ABA Journal: ‘We have undertaken a number of measures to ensure the financial stability of the firm moving forward, which includes shareholder reduction in draws and salary that have already been implemented,’ the statement said. ‘This will be followed over the next few weeks by temporary salary reductions across the firm and with a furloughing of some employees. … Our hope is that, once this crisis subsides, we will eventually be able to bring the furloughed team members back to Baker Donelson. Until then, we are providing them with support to help minimize the impact of what we know is an extremely trying situation, particularly in these highly uncertain times.'”

Read the article to find what other law firms are following suit by taking temporary measures in response to work slowdowns.

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“Top in-house lawyers are getting their compensation cut along with other executive officers as the new coronavirus causes widespread economic distress,” reports Brian Baxter in Bloomberg Law’s Corporate Governance.

“Marriott International Inc., the Cheesecake Factory Inc., and other companies have announced plans to cut pay for top executives. Bloomberg Law recently reported that gaming company Accel Entertainment Inc.’s leadership is going even further, foregoing 100% of their pay until it hopes normal business operations resume next month.”

“Veta Richardson, president and CEO of the Association of Corporation Counsel, said that she can’t recall another time when executive pay cuts have become so extensive.”

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“One after another, like dominos, court systems are shutting down or moving to drastic restrictions. In the process, court dates are being pulled and cases are moving into limbo. As that happens to your own once trial-bound cases, you think, ‘What now?’ What do you do with the time that you now unexpectedly have as your case is put on pause?” asks Dr. Ken Broda-Bahm in Persuasive Litigator.

“Clients will often issue a ‘Stop work’ notice, thinking, ‘Let’s put a pin in it, package everything so it’s fresh, then revisit the situation down the road, closer to the new date.’ Limiting the expenses is, of course, a worthwhile goal, particularly now that the economy is moving into limbo as well. But sometimes, the decision to call an abrupt and complete halt can be more penny-wise than actually wise. When a pause is created, not just by the current Coronavirus measures, but by any delay or uncertainty over a court date, that pause can be an opportunity.”

In this post, Dr. Broda-Bahm shares seven ideas on how to make the best use of an unexpected delay.

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“While not every firm has yet reported their financials, we do know what Kirkland & Ellis — the reigning top revenue pile in Biglaw — did in 2019,” reports in Above the Law’s BigLaw.

“In 2019, Kirkland saw their revenue rise by an impressive 10.6 percent, bringing them to a crazy $4.154 billion in revenue. And profits per equity partner were also up — 3.13 percent to $5.195 million.”

“The firm is also busy getting bigger.  In 2019, Kirkland’s headcount went up 12.6 percent, with the London office leading the way with a 3.3 percent headcount increase, bring that office to ~307 lawyers. However, all the headcount growth does have a downside, with revenue per lawyer dipping 1.8 percent to $1.59 million.”

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“The Am Law 50 firm moved its headquarters to Philadelphia’s Cira Centre in 2005, taking advantage of a tax break program that Pennsylvania offers businesses to move into developments in formerly run-down areas. Since taking up residence in Cira Centre, Dechert’s paid virtually no state or local business taxes in exchange for Dechert’s role in making the area an attractive business destination,” notes Joe Patrice in Above the Law’s Biglaw.

“But the program expired in 2018, so when the Keystone Opportunity Zone program eyed a new tax-free area in Schuylkill Yards, Dechert walked up and asked to move there too.”

“There’s nothing in the law to say companies can’t hop from zone to zone to remain permanently tax-free, and when authorities denied Dechert’s request to continue not paying its taxes, the firm took the government to court.”

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It was November 2014 when attorney Steve Ryan gave a presentation to his shareholders about a possible merger for Briggs & Morgan law firm, arguing that they “needed to take a hard look at what the strategic path forward for our firm was going to be,” reports Liz Fedor in MinnPost’s Twin Cities Business.

“It took Briggs five years to consider its future, choose a merger option, and find Taft, a Midwestern law firm that, like Briggs, was founded in the 1880s. On Jan. 1, 2020, the firms merged, and Ryan is now partner-in-charge of the Minneapolis office of Taft.”

“As of early 2020, Briggs was among three of the 10 largest law offices in downtown Minneapolis that executed mergers. Gray Plant Mooty, the oldest continuous law firm in Minneapolis, dating back to 1866, combined with a firm whose biggest market is Kansas City. The new firm is called Lathrop GPM.”

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“Cascade County has hired a private law firm to assist the Cascade County Attorney’s Office, which is experiencing a significant number of attorney vacancies with two major civil cases pending,” reports Kari Puckett in Great Falls Tribune.

“At a special meeting Friday, commissioners approved a legal service agreement with Ugrin, Alexander and Zadick in which attorneys for the firm will serve as independent contractors to provide legal representation to the county.”

“Costs for the initial six-month term is $7,500 a month for a total of $45,000.”

There are three vacancies in the office.

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“A partner at Quinn Emanuel Urquhart & Sullivan in New York has tested positive for the coronavirus, prompting the firm to close the office as a precaution this week,” reports Amanda Robert in ABA Journal’s Daily News.

“The firm did not name the attorney, but according to Law.com, he is the first known BigLaw partner to contract the coronavirus in the United States. An attorney at Lewis and Garbuz, a Manhattan trusts and estates law firm, also tested positive for the illness last week.”

“John Quinn, founding partner of the 800-plus attorney firm, also told Law.com on Sunday that the partner belongs to a religious community in Westchester County, where other infections have been reported. He has been resting at home since March 2.”

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“Using social media to support your firm’s and lawyers’ business development efforts should be at forefront of everything you do on LinkedIn, Twitter, Facebook, etc. If the post doesn’t support your firm’s strategic goals, take a time out to think about why you are even doing this and rethink your strategy,” writes Stefanie Marrone in The Social Media Butterfly’s Insights.

“Don’t use your social channels to only focus on your firm’s work and its substantive news, events and publications – that can make your firm seem dry, a little boastful and devoid of personality and heart.”

“Firms should also showcase their “softer” side, which can support their business development efforts, because clients want to peek behind the curtains on the firms on which they rely.”

“Showcasing the softer side of your law firm humanizes your firm and makes your lawyers more relatable. Include posts about firm life, pro bono and community service, upcoming holidays, as well as profiles on lawyers and alumni, and photos from firm events.”

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“While organizations make significant investments in protecting their data from outside infiltration, they can often overlook the serious threats that exist within their own workforce. According to a 2020 study released by the Ponemon Institute, the biggest threat in terms of disclosure of sensitive information comes from so-called “insider threats,” in the form of employees who disclose protected information or provide a means of access to that information to third parties, either unwittingly or otherwise. That threat has only grown in recent years, increasing by 47% in the last two years alone,” reports Risa B. Boerner in Fisher Phillips Newsletters.

She further breaks down her article into the following sections:

• The Costs Can Be Staggering
• Why The Recent Surge?
• First Steps: Awareness + Training
• Advanced Tactics

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“There has been a veritable explosion of antitrust litigation in the workplace law field, putting employers and their executives at risk. Federal and state antitrust agencies and private plaintiffs have accelerated their attacks on employers who agree to coordinate wage levels (wage-fixing) or not solicit each other’s employees (no-poach),” writes Dennis Cuneo in Fisher Phillips’ Resources.

“Four years ago, the Department of Justice threatened criminal prosecution of companies and individuals who engaged in such activities. A few weeks ago, the nation’s top antitrust law enforcement official reiterated that threat, announcing that he plans to bring a criminal prosecution this year challenging a no-poach agreement. Attorneys General in several states have stepped up their challenges to no-poach agreements, particularly in franchise settings. Private plaintiffs have obtained huge settlements in class action lawsuits challenging no-poach agreements and exchanges of compensation data among employers.”

“The antitrust prohibitions against price fixing or market allocation in product markets are well understood. What is not as well understood is that the antitrust laws apply equally to labor markets. Just as a price fixing agreement between two companies to fix the price of widgets may lead to antitrust sanctions, a wage-fixing or no-poach agreement between two companies that compete for the same labor may also lead to antitrust sanctions.”

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“Earlier this week, Americans received a rather stark warning from federal health officials about the inevitable spread of coronavirus in the U.S. ‘[T]his could be bad,’ Dr. Nancy Messonnier, director of the National Center for Immunization and Respiratory Diseases, said during a press briefing. ‘It’s not so much of a question of if this will happen anymore but rather more of a question of exactly when this will happen,'” reports Staci Zaretsky in Above The Law’s Biglaw.

Biglaw firms across the country are taking the news seriously, echoing the actions of their colleagues abroad and imposing travel restrictions and canceling events.

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“A Kansas law firm that claimed that a competitor was inflating client recoveries in its advertising won’t be able to pursue its lawsuit,” reports Debra Cassens Weiss in ABA Journal’s Law Firms.

“U.S. District Judge Eric Melgren of Wichita, Kansas, ruled against the Brave Law Firm in Feb. 12 decision dismissing his case.”

“The Brave Law Firm, a personal injury firm, had alleged that Brad Pistotnik Law and the Pistotnik-affiliated Truck Accident Lawyers Group were engaging in false and deceptive advertising by listing high-dollar recoveries.”

“Various amounts are listed on screen, including $9 million … The $9 million amount was also listed online and in print ads.”

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“Jones Day has hired five Supreme Court clerks from the October 2018 term, continuing its recent tradition of recruiting top talent from the nation’s highest court,” reports Roy Strom in Bloomberg Law’s Business & Practice.

“For nearly a decade, the Cleveland-founded firm has been a leader in the prestigious competition to land young lawyers with a Supreme Court pedigree. Last year, Jones Day hired nearly a third of all the clerks, 11, from the 2018 term. Jones Day has now hired 55 Supreme Court clerks since the 2011 October term. It’s 2019 class includes clerks for Justices Samuel Alito, Clarence Thomas, and Ruth Bader Ginsburg.”

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“Biglaw firms across the globe continue to promote diversity and inclusion among their ranks by instituting transgender-friendly workplace policies. To that end, many firms have decided to embrace the full gender spectrum by encouraging any and all employees — not just their transgender, genderqueer, and nonbinary employees — to use gender pronouns in their email signatures.” writes Staci Zaretsky in Above The Law’s BigLaw.

Earlier Above the Law “wrote about Sidley Austin’s heartening step forward when it offered firmwide approval and support for employees to add gender pronouns to their signature blocks. As it turns out, many other firms have done the exact same thing.”

The article provides a few of these signature blocks, including facts about each firm’s steps toward inclusivity.

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“It was major legal industry news last April when international business and legal services powerhouse EY entered into an agreement with Thomson Reuters to acquire Pangea3, the legal managed services business.” reports Robert J. Ambrogi in LawSite’s blog.

“Now, 10 months later, EY has laid off at least some of the U.S.-based lawyers who came with the deal.”

“While precise details remain uncertain, reports indicate that EY has let go some 20-30 lawyers who work for it in the Minneapolis-St. Paul area of Minnesota and the Dallas-Fort Worth area of Texas.”

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“Coinbase Inc., a San Francisco-based digital currency exchange specializing in bitcoin transactions, has gone on an in-house hiring spree a little more than a year after recruiting former Fannie Mae general counsel Brian Brooks to serve as its chief legal officer.” reports Brian Baxter on Bloomberg Law’s Corporate Law News.

“Within the last three months Coinbase has brought on three more top in-house lawyers. One of those additions, former JPMorgan Chase & Co. assistant general counsel Rachel Nelson, was named in January to co-chair a new market integrity working group for the Blockchain Association, a trade association for the U.S. blockchain and cryptocurrency industry.”

“The additions by Coinbase come at the same time as a series of departures from Circle Internet Financial Ltd., a Boston-based blockchain payments company backed by The Goldman Sachs Group Inc. Several in-house lawyers have left Circle since last summer amid a series of layoffs and divestitures by the company as it reshapes its business around stablecoins.”

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