It looks like local sweatshop Alverson Taylor Mortensen & Sanders has made the prospect of working there even more appealing. As if conditions weren't bad enough for associates, ATMS sent out two emails last week that made things even worse. The first email tried to soften the blow for a couple paragraphs, right before kicking associates in their collective nuts:From: [Secretary]Subject: Message From Bruce Alverson
As most of you already know, as a result of our country’s current economic times, virtually all of our clients have refused our requests for hourly rate increases. At least one client has filed bankruptcy and several more are rumored to be on that economic path. In short, our revenues are capped at least for the foreseeable future. Basic math tells us that if revenues are capped, we must make every effort to hold the line on expenses.
Salaries are the single largest expenditure in a law firm. Historically, we have given raises every six months. To our knowledge, we are the only firm in Las Vegas to review salaries and give raises that frequently. In an effort to control costs, we have considered various options that other law firms are using—ranging from layoffs to salary cuts to reduced work hours with a proportional salary reduction.
The partners have decided on a far less drastic measure. We are not giving salary increases at this time. We will re-examine this decision in six months.
Bruce
So, they have considered "reduced work hours with a proportional salary reduction?" How exactly would that work under an hourly system?
We realize that pay freezes aren't on the same level as layoffs, but ATMS associates have it pretty rough already. Up until now, ATMS has given "guaranteed" raises of $6000 every 6 months to associates, a fact often cited by ATMS associates when they are asked about working at one of the lowest-paying firms in town and used by ATMS recruiters when bringing in "fresh meat."
According to our tipsters, because ATMS raises their base salary each year for incoming associates, if things stay the way they are, first-year associates who start after the July bar (if they start at all) will be making more than the second year associates who just had their April raises eliminated. This is because ATMS raises are given twice a year, in October and April, and new associates don't get the benefit of the October raise because bar results come out in mid October, thus they aren't attorneys yet (another classy move). ATMS second-years must be feeling awesome about that.
But the fun didn't end there for ATMS associates. A second email was sent days after the first, only there was no "softening the blow" this time:
From: [Same Secretary]
Subject: MESSAGE FROM BRUCE ALVERSON
Effective 30 days from today, ATM&S is suspending the matching fund provision in our 401k plan. That is, the firm will not match future contributions. The 401k plan remains in effect–you can make personal contributions, but the firm will not contribute a matching amount. If you wish to stop contributing, contact [redacted] immediately and she will explain the process.
We will reconsider this issue in six months.
Bruce
Losing your raise and your 401K matching all in the same week ... ouch! We're pretty sure that ATMS is running out of "benefits" to cut. Perhaps they are just doing this so associates will leave on their own and ATMS can avoid using the "L" word.
By the way, what's with Bruce Alverson having his secretary send these emails? We guess he can't be bothered to address his associates directly ... must be too busy scanning the parking lot for pennies to pick up.
(Thanks tipsters)
"virtually all of our clients have refused our requests for hourly rate increases" hahahaha.
ReplyDeleteI'd love to know how fast the door hit them in the a$$ when they threw that out to the client.
Seriously, is a salary freeze surprising in this economy? I'd be surprised to find out places were giving raises and bonuses.
ReplyDeleteWho out there is asking for a raise?
All things considered, I'd say no raise and losing a 401K contribution is pretty mild. I guess the cumulative effect of ATMS policies plus this makes it remarkable, but not shocking.
It looks to me like a smart PR move, although I don't think two big email announcements in the same week was the best way to handle it. If they can avoid layoffs by doing this, then the employees ought to feel pretty good about how it was handled.
ReplyDeleteThat being said, certainly it sends out a negative message, so maybe there will be a few layoffs coming.
Does anyone really think that ATMS cares about PR or its image? The firm is a notorious sweatshop. All Bruce is worried about is making money. If that means lopping off a few associates, so be it.
ReplyDeleteI think that the ATMS associates' bonus is that they aren't laid off. They took the job with the crappy salary knowing they got regular raises, and that's been taken away. But the alternative is no job, so pick one.
ReplyDeleteIt's an employer's market and they ATMS knows it.
I agree about the post about good PR. Good PR helps make money. Bad PR creates the wrong public image which causes a loss of money.
ReplyDeleteIt is so pathetic that a few extra $$$ in Bruce's pocket is worth using "the ecomony" as an excuse to steal from his associates.
ReplyDeleteIt just doesn't make any financial sense if you have an associate that bills at the least $140 an hour for 2200 hours a year = $308,000. I have a hard time believing that after an $80K salary (a few thousand in 401K match) and overhead, that ATMS can't cover their costs?
How about cutting the bonus in half, instead of taking it away entirely? Any work is better than getting treated like s*%t over there.
I know for a fact that there are other "insurance defense" firms that are doing very well in this economy and giving regular raises and bonuses to their associates.
Which LV firms are doing well, hiring, giving raises and paying bonuses in this economy? Do tell.
ReplyDeleteAnon @ 2:37p
ReplyDeleteYou know, those 'other insurance defense firms'. Kind of like the 'they' in 'you know what they always say...' and when you know 'a cousin' that did something amazing.
Maybe they should try spreading the work around. They have some groups that are extremely busy and other groups that are not busy at all. When your employees are paid on an hourly salary, this policy is not fair. Why not spread the work around so everybody can make their hours.
ReplyDeleteATMS doesn't know how to manage their attorneys in a way that produces good work - only good money for Bruce.
Why shouldn't a firm let the market dictate what it pays associates? Associates are free to leave for better jobs, or strike it out on their own. Might such an approach bit ATMS in the future? Maybe. Or maybe their employees know colleagues who have been laid off, or have faced similar "freezes" themselves.
ReplyDeleteWhat % of Boyd students do you think would jump at the chance to work for 80K a year with little chance of significant raises? I'm guessing, despite the sentiments of this thread, ATMS would be a desirable place to be hired right now.
Re the 401k matching. Does anyone know how much of the employee contribution that alverson taylor matches. For example, 10% of the contribution? How does that compare to the % that other firms match?
ReplyDeleteAlverson (used to) match dollar for dollar up to 10%, vesting at 20% per year, I've heard.
ReplyDeleteSo, if the employee contributed $10,000 to the plan, Alverson would also contribute $10,000?
ReplyDeleteThis comment has been removed by the author.
ReplyDelete@ 3:52
ReplyDeleteSort of. If an employee contributes $10,000, ATMS matched with $10,000.
HOWEVER the matching portion of the contribution only vests at 20% per year.
Thus, if you work there for 2 years and leave (as most associates do), contributing $10,000 each year, you leave with 40% of their match, or $8000 in addition to the $20,000 you contributed.
Everyone says ATMS associates leave after a couple years. Where do they go? Is the impression that they leave and work for less money somewhere less abusive? Or do they leave and work somewhere for more money (and also maybe less abusive)?
ReplyDeleteThe reputation of this place is incredible, judging by the number of comments it generates whenever it comes up on WWL.
The associates' salaries all over the country, including Vegas (although not as bad), are out of line with the skill level of the newbie associates. Most associates never bring in a single client and therefore are basically paralegals with a law degree. To be making anywhere near $100,000 after a few years of practicing law with a partner handling the person work is pretty darn good.
ReplyDeleteThe economy is now making associates appreciate their jobs more rather than coming out of school thinking they should be getting a big payday.
@ Anon 4:09
ReplyDeleteThe associates who have left lately have gone to work in a variety of places such as plaintiff's firms, in-house for insurance companies, and other "more prestigious" firms. I doubt they are making less money, however.
Re post 4:09 "Less abusive?" The firm is abusive to its employees? What does that mean? The posts indicate they do not pay as much as some, and they have a billing requirement - is that what you mean by abusive? Or do they beat employees- maybe water board them? Do you have examples of the "abuse?"
ReplyDelete4:09 here.
ReplyDeleteYeah, I agree that the term "abusive" is incorrect. But I'm just going off of other people's reactions and comments which, I think, are either hyperbole or based on some sort of personal bias against ATMS. Reading WWL, you WOULD think that ATMS has associates chained to toilets reading discovery docs and being paid in gruel.
The gruel isn't even the worst part, it's the beatings that really hurt ... especially when Bruce leaves his rings on.
ReplyDeleteI'm a third year at one of the big Vegas firms (not ATMS). I have to say leaving a small firm to come here where I wonder everyday whether layoffs are coming really sucks. So far, so good, but the long hours and the stress of possibly losing my job some day isn't worth it.
ReplyDeleteWow, it feels good to get that off my chest.
Here here, 8:47. I'd give a quarter of my (admittedly generous) salary to be guarantee some stability right now. I'd give a third to be rid of billable hours altogether!
ReplyDelete8:47, I went from middle sized firm to a large firm and I regret it, but I'm pretty stuck now (assuming I don't get a pink slip). For an extra $10,000 a year, I feel like a number rather than a person and I often wake up in the middle of the night thinking about billable hours.
ReplyDeleteOh well, at least I have a job, so I guess I can't complain too much.
Those discussing "small" "mid" and "large" sized firms above, would you mind giving some context to that, like number of attorneys?
ReplyDeleteI find that peoples' view on these things vary wildly.
The employee that cut and copied those emails should be ashamed of themselves. If you hate working for ATMS so much then leave. Instead of using the man's emails who puts food on your table to complain you should be grateful you have a job.
ReplyDeleteI don't know that they need to be grateful and/or graveling. I mean, it isn't like ATMS employs them out of charity. They are the engine that drives the ATMS bus, I'm sure. But I do agree a little more respect, a little more loyalty would probably serve them well.
ReplyDeleteI agree that it was wrong to cut and paste the letter sent by Bruce; however, he can hardly expect respect and loyalty from his employees when he shows them little in return.
ReplyDeleteATMS is not "abusive" per se, but they treat their attorneys as expendable resources. The attorneys are now hourly employees but are not allowed to bill for 1/4 of the hours that they work. So they work 12 hour days and get paid for 8.
ATMS is always a hot topic for this blog.
I am not sure I understand the math. I am told the associates are paid for BILLABLE hours. If so, why would ATMS cut billable hours? Would not they be better off just billing them to the client and get paid? After all, billing clients and getting paid is the idea in this business, I thought. If an associate has to work 12 hours to get 8 billable hours in an insureance firm, maybe they are not cut out for the job and should look into something else.
ReplyDeleteAnonymous said...
ReplyDeleteThe employee that cut and copied those emails should be ashamed of themselves. If you hate working for ATMS so much then leave. Instead of using the man's emails who puts food on your table to complain you should be grateful you have a job.
April 15, 2009 9:03 AM
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You know, I admire a man who stands up for a boss. But here I have to say it's not a mere boss, it's a man who has built a fortune defeating injured men's claims to compensation; a man who makes a living serving Satan; a man who considers the law to be a shield to protect his clients from Justice.
Yeah, no boo-hoo's for Alverson Turnover. For that matter, no boo-hoos for the insurance defense drones, either.
Sounds like someone who has gotten his butt kicked so often by ATMS lawyers that bitterness is his last recourse
ReplyDeleteThe reason Associates' hours are cut so much at Alverson is because the Insurance carriers are refusing to pay for anything but "necessary" work. Therefore, a large portion of the billable hours are reserved to the partners and the senior associates, leaving the new associates to work harder and longer without getting their due credit in billables.
ReplyDeleteThanks for sharing...........
ReplyDelete___________________
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