International law firm Duane Morris LLP finds itself embroiled in a class action filed on Wednesday by Meagan Garland, a non-equity partner at the firm. Garland’s lawsuit alleges that Duane Morris intentionally misclassified her and potentially other non-equity partners under the “partner” designation to cut down on business and tax expenses.
According to the complaint, Garland, who has been with the firm since 2018 and received the title of non-equity partner in 2021, claims that the title is misleading. She argues that she does not hold any management role and that her salary is determined entirely by the equity partners board, rather than through any independent means. This has purportedly allowed the firm to shift tax liabilities onto her by failing to withhold appropriate taxes.
The nuances of Garland’s allegations centered on whether the title “non-equity partner” was used as a strategy to circumvent certain legal and financial responsibilities, which may foster significant discussion in the legal community. As the legal profession continues to navigate the distinction between equity and non-equity partners and the implications of such classifications, this case could set a significant precedent.
Details of the lawsuit can be tracked under Docket No. 4:24-cv-04639. For further information, you can read the Bloomberg Law article here.