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Perks / Fringe Benefits

Another Way to Handle Swine Flu

Akerman logo.JPGWe previously reported on Ropes & Gray hoarding Tamiflu for its employees. Reaction was mixed. Some people applauded Ropes looking out for the health of their employees and their families; others feared that Ropes was unwittingly contributing to a drug-resistant strain of the H1N1 virus.

But there are many ways to prevent an outbreak of piggy pestilence at a law firm near you. One of the most, dare I say rational, measures is to make sure that people who are sick aren’t coming into work.

That’s what they are doing at Akerman Senterfitt. The Washington Post reports (gavel bang: ABA Journal) that the firm is allowing people with the sickness to take time off of work, without counting it against their allotted leave time:

When Great Falls resident Carolyn Cuppernull’s 10-year-old daughter came down with swine flu, she didn’t have to take time off work to stay home with her.

Cuppernull is senior marketing manager of the Washington office of the law firm Akerman Senterfitt. Under the group’s former policy, she would have had to use paid leave to stay home if she or a relative got sick. But the firm recently updated its rules to allow employees to stay home with full pay — without using leave time — for H1N1-related absences.

Now that’s a way to make sure your office doesn’t suffer a swine flu outbreak without potentially contributing to the mutation of a global super virus.

Of course, there is a downside.

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NYU Law: How Much Do Your Paper Cups Cost?

New York University Law School NYU Law School Above the Law.JPGThe competition between NYU Law and Columbia Law is always fierce — even when it is a race to the penny-pinching bottom. Two weeks ago, we told you that Columbia is now charging students for plastic forks (though chopsticks remain free).

Not to be outdone, a disgruntled NYU Law tipster reports:

So I’m in my last year at NYU Law and just had a fairly shocking experience…. I went to the lounge to get a cup for water from the water fountain. I grabbed a cup and walked away, and the cashier yelled at me. I thought she thought I was stealing a cup of coffee, so I told her I just wanted water. She said “that’s 25 cents.” I said “no, I just want water.” She said “I know,that’ll be 25 cents. We have to pay for those cups.” The worst part? It was a cup from Starbucks with the “we proudly serve Starbucks coffee” logo on the side.

Indignation from our tipster, plus a clarification about Columbia cutlery, after the jump.

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Columbia Law School Now Charges For Plastic Forks

columbia law school logo.jpgTuition at Columbia Law School this year is $48,004 (which doesn’t include $1,638 for health insurance and a $95 “transcript fee”). The estimated living cost for an academic year is $21,263. Putting it all together, students are looking at more than $70,000 for a year of legal education, during the worst recession in the legal industry most people can remember.

You’d think all of that would at least buy you a plastic fork at lunchtime. But you’d be wrong. Tipsters report that Columbia is now charging $.15 for plasticware in the law school cafeteria.

I’ve been doing this job for over a year now, and in that time some pretty petty cutbacks have scrawled across my inbox. But this might be the most outrageous “reverse perk” of all.

Let’s take a stroll through some other recession cutbacks.

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Reversed Perk Watch: No Soda For You

Quinn logo.jpgWe are fighting two wars, the economy is in the toilet, and the assassinations of Biggie and Tupac remain unsolved, but our elected leaders have spent a lot of time concerning themselves with soda (a.k.a: pop). Literally, the President of the United States is concerned about this.

Here in New York, wealthy overlord mayor Michael Bloomberg has an entire ad campaign running against soda. It’s probably just a precursor to the soda tax that is often talked about.

As a meat-eating smoker who detests physical activity and enjoys it when cows are fed beer, I’m immune to the so-called “doctors” and their calls for basic health. To me, taxing soft drinks is a violation of the social compact.

But in Biglaw, the war against soda is on. Foley & Lardner has already taken up arms against soft drinks. And it looks like Quinn Emanuel will be next.

Details after the jump.

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Biglaw Perk Watch: Clifford Chance’s Lingerie Allowance?

Lawyer no pants.jpgLike most days, I started my morning with a Red Bull and the best morning man in the business, Pat Kiernan. Everything was proceeding normally, until I received this tip in the ATL inbox:

Women lawyers at City firm Clifford Chance have been given a £90 lingerie allowance.

Now, as you can well imagine, I don’t normally “spring” into anything — much less action. But within nanoseconds of receiving this information, I fired off a flurry of emails.

It turns out that the story comes from the Guardian - U.K. Here are some additional details about this (lacy?) fringe benefit:

Women lawyers at top City firm Clifford Chance are bucking the trend for reduced expenses now that their £90 lingerie-and-blouse allowance, if they work later than 11pm, has been reinstated. Inevitably dubbed the “90 nicker knicker allowance”, this may or may not be the most reliable indicator yet that the credit crunch is over. (Business is apparently so hectic that the firm has also installed sleeping pods.)

If you “work” later than 11 o’clock, you get to buy new panties? Why didn’t I think of that? More importantly, why didn’t Ben Franklin think of that and put it in the Constitution?

After consulting colleagues in London, a spokesperson for Clifford Chance in New York got back to me about bringing this commitment to sensual excellence to America. Sadly, it turns out that what sounds like one of the greatest Biglaw perks ever is in fact just a pedestrian acknowledgment of basic hygiene.

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Reversed Perk Watch: Soda Subsidy Slashed at Foley & Lardner

Foley Lardner LLP logo Above the Law blog.jpgFirst they came for the Kleenex. Then they came for the coffee.

All around the country, law firms large and small are cutting costs by revoking perks. Today we heard from an unhappy camper — perhaps deprived of their customary caffeine? — at Foley & Lardner:

I can handle them taking away the Christmas party and giving us a 10% pay cut. But ratcheting up the cost of my soda by 150% is where I draw the line!

From an internal memo that went around this morning:

Vending machine prices - It has been several years since we last changed the price of beverages in the vending machines, yet our costs have increased steadily over those years. In order to bring the prices we charge in line with current costs, the price for soda and water will increase to $.75 and the price for juice will increase to $1.00. The new prices are still well below those found in public vending machines or stores, but will reduce or eliminate the need for the office to subsidize these items.

Frankly, we’re a bit puzzled. Isn’t it in Foley’s business interest to have well-caffeinated associates? Could the associates deprived of discounted Dr. Pepper have a Good Samaritan claim — oh, never mind….

The full memo — apparently there’s no such thing as a free lunch, at least at Foley & Lardner — after the jump.

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Reversed Perk Watch: McDermott Will & Emery Scales Back on Benefits

McDermott logo.JPGIt has been a tough two weeks for employees at McDermott Will & Emery. First the firm cut the salaries of summer associates. Then MWE fired 72 people.

Today, word came down to all associates and non-attorney personnel that the firm is also cutting benefits. A firm-wide memo explained:

The Firm has evaluated its employee benefit plans and is making changes effective July 1, 2009.

We began our evaluation late last year in response to the deteriorating economy and the fact that changes to employee benefits plans were occurring throughout corporate America. After a thorough review by our benefits consultants, we were informed that our plans were above market and that specific changes, if implemented, would bring our plans more in line with the market.

Right. Who wants to pay an “above market” benefit package?

Remember, McDermott is the firm that canceled aspects of its coffee service. At the point where the firm is looking to save nickels and dimes on coffee, it shouldn’t be surprising that it has found a way to save some money on more important employee benefits.

A tipster reports that the top line changes to MWE’s benefit structure include an increase in some premiums and deductibles, as well as a reduction in the percentage of pharmaceutical costs that are covered by the firm’s health plan. Suddenly, the nationwide health care debate expected to take place in Congress this summer just became much more important to employees at McDermott.

In fairness, MWE isn’t the first firm to go down this path. Last month, Kirkland & Ellis made similar changes to its health care coverage for associates.

Read the full memo after the jump.

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OMG. Law Firm in Memphis Offers Yoga.

burch porter and johnson working out in the storage room.jpgNot all firms are cutting back on the perks. The Memphis Commercial Appeal has an enthused article today about the perks to be had at the small Tennessee firm of Burch, Porter & Johnson.

The article, “Legal firm helps its employees find essential balance,” talks about the firm’s AMAZING perks:

Something refreshing for body and soul is happening within the 119-year-old walls that house a venerable Memphis law firm.

Refreshing as a good yoga session. Strengthening as a brisk core-body workout. And uplifting as guest speakers whose work has made Memphis a better place.

Sweet. You can work out at work! And they friggin’ bring in guest speakers at lunch. Wow! Do they have as much free coffee as you can drink too?

If you thought firm life in Memphis couldn’t compare to Biglaw in the big city, think again:

That quest for balance explains why Leah Hillis strolled down the hallways on a recent lunch hour wearing workout clothes for a yoga session.

The associate attorney headed for the firm’s large, third-story storeroom overlooking Court Square… Other exercise classes to strengthen the core-body are Mondays and Fridays in the same unfinished space, which holds files of old cases, surplus furniture and cleaning supplies.

The classes are inexpensive: $4 for yoga and $3 for the core-body sessions.

Only $4 to work out in the storage closet!

If that’s not your cup of tea, you can spend lunch with a guest speaker during one of the firm’s “fireside chats” in the Crump Room. A recent speaker mentioned in the article is a Holocaust survivor. Fun times.

Law and life: Legal firm helps its employees find essential balance [Memphis Commercial Appeal]

Reversed Perk Watch: Kirkland Claws Back Health Care Costs

kirkland ellis logo.JPGLaw firms are dealing with the Great Recession in many different ways. As we’ve chronicled in these pages, layoffs and salary cuts are commonplace, practically clichéd.

Some firms are cutting costs more creatively. From a source at Kirkland & Ellis:

We just got a memo from K&E about a massive increase in our health care premiums. I’m not happy at all…. By my rough math, my deductible tripled, but the cost increased $100/month. So they’re screwing us two ways. Again, if my math is right.

From a second tipster:

This change effectively reduces associate salaries by approximately $1,000-$2,000 per year, although made under the guise of a change in the health care plan (perhaps in attempt to avoid blog coverage of salary cuts?).

K&E’s health care coverage was already pretty poor compared to other biglaw firms. This change makes their health care for associates (and other employees earning more than $90K) even worse. Also disturbing is that part of the justification for the change is to “bring the amount paid for health care coverage for associates closer to the amount paid by partners of the Firm…..”

My (albeit limited) understanding of health care coverage for partners in partnerships is that by its nature it is always different from the partnerships’ actual employees (i.e., associates)…. Additionally, we all know K&E partners make a ton of money (as evidenced by their high ppp, which have not been reduced). While associates at Kirkland are definitely well compensated, they work brutal hours for that money, and enacting a salary cut in the guise of bringing partners health care cost “in line” with associates seems greedy and ill-advised.

Full memo, in all of its hyper-technical glory, after the jump.

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Fried Frank Promotes Renewed Emphasis on Billing Policies (And cuts back on some perks.)

Fried Frank logo.jpgAs many of you know, part of the problem firms are facing during these challenging times is that clients won’t pay their bills. Lawyers can’t get paid unless clients pay.

Whether or not clients are willing or able to pay, it certainly won’t happen unless they are billed. Hence, as most associates already know, the days of delinquent time entry are at an end.

But Fried Frank is taking it to a whole new level. Instead of making sure your time is up to date every month or every couple of weeks, Fried Frank wants attorneys to accurately close out their time every single day. This is from a firm-wide memo that went out last week:

The importance of accurately billing and recording time - both from an economic and an ethical standpoint - cannot be overemphasized. Accuracy is essential both for the Firm and its clients. To ensure accuracy, it is Firm policy that attorney time must be entered and released on a daily basis. This memorandum covers the Firm’s current client billing policies and guidelines.

Most of Fried Frank’s billing policy is pretty standard and common sense stuff (you can download the full policy after the jump). But there are some significant changes.

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Reverse Perk Watch: McDermott ‘Sends a Message of Desperation’

McDermott logo.JPGGiven the crazy layoffs news today, a law firm cutting back on perks might seem like small beans. But with many perks, it’s not about the particular thing being offered (or taken away) it’s about what the perk says about the firm, its culture, and in some cases its financial health.

It looks like McDermott Will & Emery is taking away coffee in its Chicago office. Here’s the email from the head of the firm’s Chicago office:

These are difficult times for our business and legal communities. We, like all law firms, are looking at expenses that can be pared without diminishing the quality of the legal services that we provide to our clients.

Effective immediately, we are suspending our coffee services in the 45th floor lobby. We will, of course, continue to provide coffee and drink carts for client meetings. We will also continue to have the Flavia coffee service available on each of our attorney floors and will provide coffee to our clients in our 44th floor reception area.

We are also suspending, effective immediately, our evening food services. Lou and Walt are working on alternatives and will present those alternatives to you in the very near term..

If you have any questions, please call me.

George

Fair enough.

But after the jump, we see that other MWE partners were not all that happy with cutback.

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Biglaw Reversed Perk Watch: Debevoise Does Drinks, No Dinner

As law firms scale back, our nationwide perk watch has shifted to a reversed perk watch. The firm giveth, and the firm may taketh away.

Debevoise & Plimpton is ramping up for its annual firm dinner on February 24. Or should we say ramping down? This was last year’s announcement for the big event:

Debevoise firm dinner 2008.jpgThis year, there will be no Pierre. In fact, there will be no dinner. Here’s the invitation to the cocktail reception, in lieu of the firm dinner, to be held on the firm’s very own 33rd floor:
Debevoise reception 2009.jpgIn the words… or word… of our tipster: “Classy.”

SmallLaw Reversed Perk Watch: Don’t cry over the Kleenex

kleenex.jpgWe’ve been providing extensive coverage of the economic troubles of Biglaw. But what about smaller firms in smaller markets? An ATL reader from a 35-attorney firm in St. Paul, Minnesota wrote to us about perk cuts in SmallLaw:

As of December, my firm no longer provides Kleenex. So now, when I am crying my bitter tears of disappointment about my career path, I am reduced to tearing out pages from various books in my office. I started with the Model Rules of Professional Conduct. It seemed somehow appropriate.

Even stranger? They actually raised our technology stipend this year, but cut the Kleenex.

We suspect Weil attorneys would sacrifice their Kleenex to get their tech stipend back.

Impressed by the tipster’s wit, we wrote a note of thanks, including an inquiry as to whether bathroom supplies were still pro bono.

There has been some concern regarding the toilet paper, but I think management is fearful enough of potential poo-flinging incidents that they wouldn’t dare tighten the purse strings that tightly.

Biglaw Reversed Perk Watch: No More Tech Stipend at Weil

Weil.gifFor Biglaw technophiles, one of the nicest firm perks is the technology stipend: a couple of thousand dollars to lavish on a new shiny toy. With the BlackBerry Curve 8900 debuting to rave reviews, and rumors in the tech world of a new iPhone on the horizon, there are lots of toys to get worked up about these days.

Alas, associates at Weil, Gotshal & Manges will not be taking part in the tech spending frenzy. One associate reports that their stipend fell victim to economic pressures last week:

They eliminated our $2K tech stipend for first and second years ($4K for the first two years). It was a bit strange, though, because anyone who had used their $2K before today gets reimbursed. So if you bought a laptop yesterday, you get a laptop. Otherwise, no laptop for you!

Congratulations to all Weil associates who placed their laptop orders in the first two weeks of January.

Tech toys are not the only perk being reversed. The associate tells us that the partner mentoring budget was cut as well.

What’s the latest perk erosion at your firm? Feel free to discuss in the comments or to send us a tip.

Associate Life Survey: Socially Challenged?

is-wurkin-hird-lukin-4-luv.jpgLast January, we did an ATL / Lateral Link survey on how often you cancelled your social plans because of work.

Notably, we found that “[a]round forty percent of associates missed dates,” usually because a partner asked them to finish something at the last minute.

But now that the economy has collapsed slowed down, some employees are beginning to get their lives back. Yesterday, even as Kash was updating us on an avalanche of salary freezes in Big Law, Gizmodo was praising at least one company that’s trying to heat things up overseas:

This just in: Canon is the world’s greatest camera manufacturer. And it doesn’t necessarily have anything to do with their actual cameras.

In response to Japan’s aging population and Japanese couples’ propensity to have too few children to maintain the country’s population, Canon called off the traditional 12-hour workday twice a week, encouraging their employees to go home early and make mini Canon employees of their own.

CNN chimed in that, even though this (pro)creative office perk meant missing out on overtime twice a week, employees were psyched:

“It’s great that we can go home early and not feel ashamed,” said employee Miwa Iwasaki.

To my knowledge, Big Law has not yet adopted a go-home-and-make-babies policy (although parental leave policies have certainly improved). But Lateral Link CEO Michael Allen tells me that “several firms encourage interoffice dating, and wrt marriage actually give a bonus, i.e., like $10,000 if you marry within the firm.”

If that’s true, then it definitely adds a different flavor to some of the questions Marin’s been taking lately on inter-office romance, like this one last fall:

I’ve just been staffed on a relatively long term project with another associate. She and I went on one date a few months ago and hooked up, but that was it because she is batsh*t crazy. Since then she’s sent me a bunch of “let’s get lunch” emails and has “coincidentally” appeared at happy hour drinks when I’m out with people from the firm. I think this person is unstable and I don’t want to put myself in a position to be sabotaged by her. But I don’t want to appear like I’m rejecting work or that I’m not a “team player.” I also don’t want to make it known that I dated a co-worker. Any advice?

So, today let’s update last January’s survey to ask not only whether you were able to be social and be a lawyer at the same time, but also find out whether your firms (or you) support inter-office productivity, as it were.

Take the survey after the jump.

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Perkins Coie’s Vegas Vacation

Perkins Coie logo.JPGYesterday, I mentioned that Fortune released a list of the Top 100 places to work. In that post I failed to note that Perkins Coie was ranked 82nd on that list.

According to Fortune:

A support staffer gave this impressive list of her benefits: $2,000 in technology flex plan allowance, $80 for wellness program participation, $475 for 20th anniversary with firm, $1,500 performance bonus, $50 Nordstrom gift card, $3,500 year-end bonus.

Well, tipsters report that Perkins Coie management is pumped about the news. Check out the firm-wide email and fun tipster responses after the jump.

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Top Biglaw Stories of 2008: #5 (Business)

ATL 2008 in review.jpgWe’re doing a series of “2008 in Review” posts here at ATL. We’ve previously declared a Lawyer of the Year, as well as two three Law Students of the Year.

We will now announce what we view as the year’s ten biggest stories in law-firm land. We’ve divided them into two groups: the top five stories on the business side, and the top five stories on the gossip side. Collectively these stories reflect the combination of edification and entertainment that we seek to provide here at ATL. We’ll start with the #5 stories in each group and work our way up.

The year that’s about to end has been full of “business and the law” stories. Most of the news has been terrible. But it really hasn’t been all doom and gloom.

Our fifth-place story on the business end of the legal industry is objectively positive news. Read about it after the jump.

Continue reading "Top Biglaw Stories of 2008: #5 (Business)"

Biglaw Perk Watch: London Pay is Falling Down

Cravath screws associates on bonus CSM.jpgLast year, we reported on a nice perk for Cravath associates abroad: a hefty cost of living allowance, which had junior associates in London making over $300,000.

It looks like the half-Skadden mentality has made its way across the Atlantic. From a tipster:

Cravath Swaine & Moore cuts its COLA in the London office from $110,000 to $60,000 as of January 1, 2009. [A]ll the associates, one after one, where called into the office of a partner, Philip Boeckman, to receive the news. The reason mentioned for the cut is the evolution of the dollar-pound exchange rate. The COLA is the same for all associates in London regardless of the level of seniority. The COLA gets paid together with the base salary on a bi-weekly basis.

That’s a big cut for the 20 associates in the London office. Before the COLA was raised to $110,000 last year, it was at $85,000.

RollOnFriday is not overly sympathetic:

Clearly the firm’s partners have now got wise. This week associates were hauled in one by one and told that the COLA would be reduced by $50k from 1st January, in response to weakness of Sterling. One associate complained to RollOnFriday that this comes on top of bonuses being halved and the ski weekend being cancelled, and says that these measures “pretty badly affect associate morale”. OK, no one likes to get less wedge - but low morale because of only getting £40k to live in London, when everyone else is being made redundant? Bring out the violins.

The other side of the pond just got a lot less attractive.

Earlier: Biglaw Perk Watch: Working Abroad

Cravath London associates lose £34k bonus [RollOnFriday]

Open Thread: Downsizing the Perks

tightening the belt.jpgWhen we did our series of Vault 100 open threads in the summer, Biglaw insiders shared insights into office culture, with much touting of work perks at various firms. These days, attorneys can brag if their firms are not among those laying associates off.

Reuters reports on perk cutbacks in the finance world, such as the elimination of business-class travel and free sodas in the office fridge. On ATL, we reported in October that K&L Gates was eliminating ABA dues payments and switching to one-ply toilet paper. (This was followed by news this month of staff layoffs).

A tipster from Kirkland & Ellis tells us the New York office is downsizing breakfast:

i know this is a little obnoxious because lots of other firms don’t have breakfast at all, but we at kirkland ny are pretty proud of our breakfast spreads: tropicana if you get in early enough, bagels, fruit, yogurt, and fancy nature’s path cereals with flax and berries and stuff. so imagine our shock and horror when we saw this hidden away in the weekly memo:

NEW BREAKFAST MENU
Beginning November 17, the breakfast menu will be changed to fresh fruit and bagels. In order to make sure there is enough for all, additional numbers of each item will be provided. We may find that the ratio of bagels to fruit needs to be adjusted to best meet preferences. Please let Pam Grazia at extension 3179 know if that is the case in the pantry on your floor.

its not the loss of the yogurt and cereal, although that does hurt. its more the sneaky way it was hidden in the memo that nobody reads!

While firms are unlikely to cut back on big perks like parental leave, this is a time for tightening the belt in other areas. We say: Better the loss of the granola than the loss of the librarian.

Are you seeing perk erosion at your firm? What is being cut back? What should be cut back? (Our Kirkland tipster tells us NY associates still get the $350 office art budget.)

Unsold Ferraris, no free drinks as crisis spikes [Reuters]

Associate Life Survey: Summer Escapes

funny-pictures-pawshank-redemption.jpgIn last Monday’s ATL / Lateral Link survey, we asked you whether you were taking any vacations this summer.

We received just under 900 responses, and the overwhelming majority of you reported that you will be escaping the office for at least a little while this summer.

Overall, 86% of you have taken, or will take, a vacation, or at least a vacation day:

  * About 24% of respondents are taking a quick break of 1 to 3 days.
  * Another 18% of respondents reported summer vacations of 4 or 5 days.
  * 16% are taking between 6 and 8 days, and 13% are going for two weeks.
  * About 5% of respondents are taking 3 or more weeks.

Among the attorneys who aren’t taking vacation this summer, 46% said that they just have too much work to get done. But 35% have the opposite problem: they need the hours. A surprisingly high number of respondents, 28%, said that they just don’t feel comfortable taking vacations. Only 7%, however, said that a partner told them not to take a vacation this summer. Another 7% are sticking around because they want to impress people, which will perhaps cause their peers to want to take more vacations themselves.

Of course, whether in the office or out, not all attorneys can completely escape their responsibilities. An unlucky 13% of respondents have had to cancel vacation plans this summer, and 55% of respondents with uncancelled summer plans either did work or expect to work during their vacations.

But hey, a busy summer is much better than the alternative, right?


Justin Bernold is a Director at Lateral Link, the sponsor of this Associate Life Survey.