Thanks to the novel coronavirus, America’s largest law firms have been forced to undertake severe cost-cutting measures. From salary cuts, to furloughs, to layoffs, these firms are doing everything they can to make sure they can survive the economic upheaval that’s been caused by the COVID-19 outbreak that’s swept across the country.
But law firms aren’t the only law-related organizations that are suffering.
It’s a whole new world out there for colleges and universities whose student bodies have migrated to online learning environments due to social distancing measures, and those with associated law schools are really feeling the financial pinch.
Today, we have news on the first law school to implement pay cuts and furloughs for faculty and staff due to the coronavirus.
Per the Arizona Daily Star, the University of Arizona — including the James E. Rogers College of Law — is expecting to face “extreme” economic consequences. The school is currently projected to lose as much as $250 million. Here’s the school’s plan:
Employees making at least $200,000 have to take a 20% pay cut, while those making between $150,001 and $199,999 have to take a 17% pay cut.
Those making between $75,001 and $150,000 will be required to take 39 furlough days, or 1.5 days per pay period, equivalent to a 15% salary cut; those making between $44,500 and $75,000 are required to take 26 furlough days, or one day per period, equivalent to a 10% cut; and those making $44,449 and under must take 13 furlough days, or a half-day per pay period, equivalent to a 5% cut.
Dean Marc Miller says he hasn’t heard of anything like this happening at other law schools. Arizona Law’s cuts are expected to begin May 11 and run through June 2021.
If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).
If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.
University of Arizona sets furloughs, pay cuts lasting months amid pandemic [Arizona Daily Star]
Pay cuts and furloughs are on the horizon at Arizona law school [ABA Journal]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.
This article is sourced from : Source link