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

The Day After a Partner Dies

Two lawyers I know in the same small law firm died in the last six months, one unexpectedly, the other at a relatively young age whose death from cancer came as a bit of a surprise as his illness apparently was a closely guarded secret. I can certainly understand the desire for privacy at what is an exceedingly stressful time, but I am left wondering what will become of the firm. Of course, every law firm should have some sort of succession plan in place, and a firm’s partnership agreement may well address it. But, as a practical matter, what happens the day after the name partner’s funeral? Who is now in charge of the office? Does that person really have a good grasp of how the firm functions on a day-to-day basis? Does that person know what the dead partner was working on, where the files are, whether payments have been made, the last time the partner even spoke to the client? 

Even in cases where death or retirements are expected, transitions might not be easy. Moreover, lawyers who have experienced the sudden death of a colleague tend not to be quite so forthcoming about a bit of disarray that may have been left behind, especially as office members as well as clients are likely going through a mourning process. The reality is: some files may be at the lawyer’s home, notes may not be as up-to-date as ideally they should be, recent timesheets may not have been completed. What is a law firm to do? Plan ahead, of course, often and well. Ideally, successors would have already been prepared for their roles and would be able to step into their newly authoritative positions seamlessly. But many small-business owners, which small firm lawyers are, like to keep their heads in the sand about the future of their businesses and their own eventual deaths. Someone needs to ask, early and often, what happens if the firm leadership gets hit by a bus tomorrow? Who would know what to do next?