Don’t Be the One Laid Off: Check your Employer’s Background First

The news that New York’s Weil, Gotshal, & Manges is dumping 60 associates and 110 staffers was bad enough, but what stood out in a recent writeup about the firm’s very bleak Monday is that the firm’s partnership agreement only allows termination of partners for cause. Peter Lattman, Big Law Firm to Cut Lawyers and Some Partner Pay, New York Times DealB%k, June 24, 2013, http://dealbook.nytimes.com/2013/06/24/big-law-firm-to-cut-lawyers-and-some-partner-pay/. While some partners are seeing a big cut in their compensation, they surely have some cause for celebration in knowing that, unlike their lower-ranked coworkers, they simply can’t just be “let go.” Or “right-sized.” Or whatever, lacking any malfeasance on their part.

That’s not such good news for those associates and staffers who’ve gotten their pink slips. The event does, however, serve as a reminder that no matter what your rank in a law firm, you’ve simply got to do your due diligence before accepting a position with one, even in those tumultuous (bleak!) times. Wouldn’t you want to know that partners can’t be let go? That means that when the firm needs to cut some big-time expenses, it’ll be looking elsewhere (i.e., associate and staffing ranks) to do the trimming.

Of course, it’s unlikely that a firm will just whip out its partnership agreement during an interview with a prospective paralegal. So do some digging! Has the firm been involved in any lawsuits where firm financials and its partnership agreement may have been disclosed? What’s the news coverage been? When considering accepting a job offer, ask to speak to someone who holds the same position you do at the firm. Talk to another associate, or to another paralegal, or to a legal secretary and ask them some pertinent questions about costs.

Even if a firm with weak financials is the only offer on your plate, you can at least be prepared (always!) if you know its background. A layoff should never come as a surprise. Have your resume ready at all times. And if you’re looking for a new job right now, remember to do your background research on prospective employers before saying yes to any offer.

—Lori Tripoli