All this talk of an economic downturn has me worried, so please help put my mind at ease.. During the stealth layoffs in 2008, did firms also clawback clerkship bonuses and the like? I have eight more months before I am out of my clawback period.

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Contracts are usually respected. Unless you’re let go.0

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I think that’s what OP is referring to.

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Stealth layoffs of 2008? What about the stealth layoffs of 2020…

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My firm didn’t even bother with the stealth part of that

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Wouldn’t clawback only apply if you leave voluntarily? If, hypothetically, you were stealthed, you wouldn’t really be leaving of your own accord before the clawback period ends. And if you’re a former clerk I assume (possibly incorrectly) you’re in lit, which I suspect is going to continue to heat up a bit moving forward as corporate cools down (if corporate does in fact cool). Lit is still relatively slow, so if you’re a litigator I wouldn’t give this too much thought.

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Also, even if the firm technically has a right to recover the clawback, if they separate you, they very likely will forgive the clawback amount, perhaps in exchange for a release. As employment counsel to multiple large law firms, I can assure you they don’t want the bad PR or headache of going after an associate they involuntarily terminated to recover a signing bonus. Can you imagine a big firm trying to recruit once they have sued an associate they separated seeking repayment? Above the Law would have a field day.

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