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Law360 (August 19, 2020, 4:24 PM EDT) -- Fox Rothschild LLP has joined the ranks of law firms rolling back some of the austerity measures enacted earlier this year in response to the coronavirus pandemic, saying Wednesday that compensation adjustments for all affected attorneys and staff will be reinstated by half.
The Philadelphia-based firm had confirmed its plan on April 20 to cut pay between 10% and 15% for all attorneys and staff earning more than $100,000 a year, and to reduce equity partner draws by 10% to 20%.
In a statement Wednesday, Fox Rothschild firmwide managing partner Mark Morris announced that effective Sept. 1, one-half of the reduction in monthly equity partner draws will be restored, and compensation cuts that impacted salaried and hourly employees at the attorney and staff levels will be reinstated by 50%.
"While we will monitor and evaluate the situation to ensure continued financial flexibility in the months ahead, we are encouraged that in only four months, we are able to reverse course on some of these measures," he said. "Our goal remains to be in the best position to serve our clients and provide the support they need to navigate these uncertain and challenging times."
In the face of the pandemic and the resulting economic downturn, firms around the world implemented cost-cutting measures such as furloughing employees and slashing salaries. A handful of firms have at least partially rolled back these measures in recent weeks.
Sheppard Mullin Richter & Hampton LLP on Tuesday confirmed that the firm is reducing all virus-related compensation adjustments by half, and Katten Muchin Rosenman LLP said it has also reduced the salary cuts by half for all affected attorneys and staff starting Aug. 1.
Baker Botts LLP also confirmed that it will dial back its salary reductions by 50% beginning Sept. 1, while Cadwalader Wickersham & Taft LLP said it will return to prepandemic pay levels starting this month.
--Additional reporting by Emma Cueto, Xiumei Dong and Aebra Coe. Editing by Alanna Weissman.
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