Tuesday, June 2, 2009

Salary Cuts May Be Coming or Have Arrived

Bad news from out east: Ballard Spahr is cutting associate salaries. No word yet on whether the Vegas branch will be receiving cuts, but we assume the salary cut is firm-wide.



News from Above the Law:

More evidence of deflation in the legal market comes from Philadelphia. Last week, Ballard Spahr decided to cut associate salaries. Tipsters report that the average cut is 14%, but each individual salary cut is based on class year and other factors. According to one source:



Ballard Spahr cut associate salaries firmwide between approximately $19,000 and $30,000 per year (senior associates being cut more both on a percentage basis and actual dollar basis than junior associates) effective June 16.

There have been whispers that cuts in associate salaries would eventually arrive in the Vegas Valley. What have you heard readers? Are salaries being cut out here in the desert or just back east?



[thanks to A and C for the tip]

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7 comments:

  1. AnonymousJune 2, 2009 at 8:59 AM

    I heard the cuts have already been made at Ballard; however, the cuts were accompanied with a reduction in billable hours.

    I haven't heard of other firms making salary cuts - other than freezes.

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  2. AnonymousJune 2, 2009 at 10:25 AM

    Can we get valley-wide report on freezes?

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  3. Legally UnBoundJune 2, 2009 at 11:39 PM

    Cuts have been made at several big names. The choice the employers are facing...should we cut staff and make the attorney's work harder, trim the costs; cut the big salaries, the attorneys, and free up much needed capital; cut the benefits; or just ask everyone to take a paycut and work harder. For stable entities, sorry guys, they are hurting. They don't live in the now, they live in the future. It is important to project and head off any trouble. The fact is, most client are cutting our bills, going out of business or refusing to pay. The mud flows down hill. We all get hit by it. Frankly the solution, MAKE SURE that you are billing so HIGH, that you are not a mouthy trouble maker and that you are handling your files. That combo will make it impossible from a profitability standpoint.
    Good luck to you all in these hard times.

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  4. AnonymousJune 3, 2009 at 9:04 AM

    Huh. I thought the WWL Way was to Name Names. Nobody wants to spill the beans?

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  5. AnonymousJune 3, 2009 at 11:26 AM

    Most if not all of the regional and national players have indeed cut salaries, including in their Vegas offices. People don't like to brag about salary cuts, which is why it's being kept quiet. Just compare the starting salaries on NALP this year to the revised (downward) numbers next year.

    Unless you have a nice book of biz, these firms aren't going to hire you any time soon anyway, so who cares.

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  6. AnonymousJune 6, 2009 at 10:28 AM

    Heard something about to go on at Holland & Hart? Either salary cuts or layoffs. Not necessarily a reliable source, so can anyone confirm?

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  7. AnonymousJune 15, 2009 at 10:28 AM

    Associates pay cut at Ballard Spahr is about 15% and bonuses will be calculated differently, but I don't know the details. Anyone else have more info?

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