Skadden, Arps, Slate, Meagher & Flom - Layoffs, Deferrals, and Skadden "Sidebar" and "Sidebar Plus"

Layoffs, Deferrals, and Skadden "Sidebar" and "Sidebar Plus"

Skadden has engaged in several rounds of layoffs, affecting non-associate contract attorneys and support staff. There is no evidence that Skadden has laid off any associate attorneys. But in March 2009, it instituted a "Sidebar Plus" program. The "Sidebar" program at Skadden has been in existence for a number of years and permits attorneys to take up to two years off to pursue personal interests. The "Sidebar" program, in contrast to the "Sidebar Plus" program, does not typically give participants any benefits other than a guaranteed job offer. Under the "Sidebar Plus" program, associates may leave the firm for up to a year to pursue public interest or other opportunities and receive one-third of their base salary, student loan payments, and reimbursement of COBRA payments during this time. Incoming associates of the Class of 2009 may also participate in the program and defer their start dates until 2010. The program is currently voluntary. It has been praised as an innovative and creative response to the recession by some while others express skepticism and question whether the firm is going to welcome these associates back. The Summer Class of 2009 will not be starting as full-time attorneys in 2010. It has been deferred until 2011.