Legal News

Kaye Scholer to Withhold Pay From Lower-Billing Associates

By Ashby Jones

Seems like lots of big firms have their own special cost-cutting techniques, whether its layoffs or deferrals or straight-up salary reductions.

New York’s Kaye Scholer is handling things a bit differently, and it’s bad news for the lower-billers.

Here’s the way it’ll work: All those first and second year associates who, as of June 1, were on pace to bill fewer than 1600 hours for the year will have 20% of what they stand to make over the last half of the year withheld. (In other words, the firm will hang on to 10% of the year’s salary.) For third year associates who fall beneath the threshold, the firm will withhold 15% of the July-December pay (or 7.5% of the full-year salary).

If, at the end of the year, the associates have hit 1600 hours, they’ll have their full pay restored.

A source close to the situation says the program is likely to affect only a small number of associates in a handful of departments.

Full post as published by Law Blog - WSJ.com on June 23, 2009 (boomark / email).