Attorney Hires in Slow Mode

Law firms in the greater Valley have found a growth sector in California’s complex employment and workers’ compensation system. Among firms on the Business Journal’s annual ranking, three of the four top-hiring companies derive a significant portion of their revenue from employment law. The top firm on the list, Tharpe & Howell LLP in Sherman Oaks, added six attorneys in the past year to bolster its employment practice. Partner Stephanie Forman said the firm has secured more work from its existing clients as well as adding new clients. And while the firm handles a variety of civil defense matters, the employment practice accounts for its new hires. “We’ve seen growth in our employment defense and workers’ compensation defense practices,” she said. “We handle a lot of wage and hour class action suits, and there are a lot more of those class actions being filed.” Barry Pearlman, partner at Pearlman Borska & Wax LLP in Encino, explained that the improving economy means more people are working, and that translates into more employee lawsuits. His firm hired three new attorneys in the last year for a total of 46 to rank second on the Business Journal’s list. “There is a significant crossover between employment litigation and those employees who file workers’ compensation claims,” he said. “They may go off on a general medical leave and not claim it’s work-related. Then, when they are at home watching those TV commercials (for plaintiff attorneys), they attempt to turn that non-work leave into a medical work leave. It’s a burgeoning area of law.” Also, the firm has found a lucrative niche defending against an escalating number of workers’ comp claims filed by former professional athletes. Pearlman said they involve pro football, baseball and hockey players, often with short playing careers. Slow predictions Tharpe & Howell, with a total of 56 lawyers, ascended to the No. 1 spot after Michelman & Robinson LLP, the largest firm on last year’s directory, moved to new offices on Wilshire Boulevard in Westwood. The firm declined to comment on its move. The law office adding the greatest number of attorneys was Pearson Simon & Warshaw LLP in Sherman Oaks. It gained 10 lawyers in the last year for a total roster of 23. The firm’s cases range from taking on the NCAA on behalf of college athletes to a class action against Carrows Restaurants Inc. for unpaid overtime. Currently, it’s representing taxi drivers in California in a suit against Uber, accusing the ride-share service of unfair competition and false advertising. But with a few exceptions, most firms in the Valley remained relatively flat in hiring new legal talent. More than half the firms on the directory kept the same roster or gained or lost just one attorney in the last year. A report by Citi Private Bank and Hildebrandt Consulting LLC published in December found that the national market for legal services stabilized in slow-growth mode last year. The report predicted low single-digit revenue growth and incremental head count growth this year. “Transactional work will continue to drive growth, and litigation demand is likely to remain flat, placing continued pressure on firms with a strong dependence on litigation,” the report stated. “We continue to operate in a buyer’s market.” Valley firms are planning accordingly. In April, Pearlman Borska expanded its footprint for its headquarters, adding an extra 5,000 square feet to its expanding penthouse of 14,000 square feet. Pearlman said the larger space has excess capacity so he can grow his workforce by about one person a year for the next decade. “Overhead expenses keep going up, so in order to just stay the same you need a greater number of attorneys,” he explained. “I wouldn’t tell you that profit is going up, but the size has to go up.” Forman at Tharpe & Howell also sees gradual growth ahead for her employment practice. “It’s slow growth,” she said, “but we are slowly trending up.”