COVID-19 has impacted virtually every sector of the U.S. economy. Struggles in one sector caused ripple effects on others when stay-at-home orders halted or curtailed normal business operations. Unemployment has reached historic levels, and in April, consumer confidence dropped to its lowest point since 2014 and has yet to rebound to pre-COVID-19 levels. Hertz, Neiman Marcus and JCPenny are just some of the corporations that have already filed for bankruptcy.

For the past three years, Jamaine Thomas has commuted by train and bus one hour each way from his apartment in the Bronx to his job at the Fairway Market in Harlem. Even through New York's darkest days of the Covid-19 pandemic, Thomas sliced provolone and Boar's Head meats behind the deli counter and made pizzas, salads and sandwiches for the café—all for $16 per hour. That's about $33,000 per year, plus benefits.

As someone who studies professional fees in large chapter 11 cases, I’ve thought a lot about how quickly those professional fees can escalate. Successful chapter 11 bankruptcies are expensive, though, in almost all cases, the end result—a successful reorganization—is a good result. But can the fees be controlled effectively?

In Episode 13 of Non-Compliant, we had the first part of our conversation with Processor Nancy Rapoport. During the episode, we discussed how COVID-19 will permanently redefine how lawyers work and their need for a physical workspace, fee arrangements, and how cases are billed. In part two of our conversation with Professor Rapoport, we focus on the impact of COVID-19 on law firm staffing, the hiring and recruitment process, and diversity initiatives.

COVID-19 will permanently redefine the legal field. From how lawyers work and their need for a physical workspace, to fee arrangements, and the types of cases filed. Over the last few months, we’ve seen significant changes in BigLaw—firms have reduced their workforce, implemented hiring freezes, and shortened/ canceled their summer programs. Professor Nancy Rapoport joins us this week to discuss the evolving legal landscape and navigating a path forward. Join us next week for part two of our discussion with the Professor.

Ann Taylor and Lane Bryant are in serious trouble. Sales are cratering, and the company stopped paying certain landlords and suppliers. S&P Global has warned the retailer is at risk of default.

Yesterday, Hertz suspended its plan to sell up to $500 million in stock in a last-ditch effort to raise money.

Back in March, Congress passed a historic $2 trillion stimulus bill that reached millions of Americans. You may have received a check in the mail or a boost in unemployment insurance. But researchers and economists are saying the money Congress spent so far may not be enough. We’ll break down what still needs work, and what experts say Congress should prioritize.