Can a lawyer apply for a Social Security fee and share it with a paralegal who is authorized to represent SSA claimants?

Plain-English summary

The inquiry concerned hiring or associating with a paralegal who represents claimants before the Social Security Administration. Under the relevant regulations, the paralegal was authorized to represent those claimants, but because the paralegal is not a lawyer, the SSA could not withhold a fee from the claimant to pay the paralegal. The proposal was that, by associating with the lawyer, the lawyer could apply for the fee and then share it with the paralegal.

The committee was of the opinion that, under the facts presented, sharing the fee would be prohibited by RPC 5.4(a). In addition, payment to the paralegal could not be contingent on the outcome of the matter. Paying the paralegal on an hourly or salary basis to perform the services, however, would not be prohibited.

Currency note

This opinion was issued in 1990, before the Washington State Bar Association's adoption of the 2006 revisions to the Washington Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer split a Social Security fee with a nonlawyer who handled the claim?

A: Under this 1990 opinion, no; the committee was of the opinion that, on the facts presented, the fee-sharing would be prohibited by RPC 5.4(a).

Q: Can the paralegal be paid a contingent share instead?

A: No. The committee was of the opinion that payment to the paralegal could not be contingent on the outcome of the matter.

Q: How can the lawyer compensate the paralegal?

A: The committee was of the opinion that paying the paralegal on an hourly or salary basis to perform the services would not be prohibited.

Background and rules framework

At the time of this opinion, Washington's RPC 5.4(a) prohibited a lawyer from sharing legal fees with a nonlawyer, and RPC 1.5(e) governed division of fees, the subjects the Model Rules place in Rules 5.4 and 1.5. The committee treated the proposed split of the SSA fee as the kind of fee-sharing the rule bars, while leaving room for ordinary hourly or salaried compensation that is not tied to the outcome.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.5(e) (division of fees)
• ABA Model Rule 5.4(a) (sharing fees with a nonlawyer)
• Washington RPC 1.5(e), 5.4(a)

See also

No sibling opinions yet indexed.

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=428

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

The Committee reviewed your inquiry concerning hiring and/or working in association with a paralegal who represents claimants who appear before the Social Security Administration (SSA) The Committee understood that under relevant regulations, the paralegal is authorized to represent these claimants; however, because the paralegal is not a lawyer, the SSA cannot retain a fee from the claimant to pay the paralegal. It was proposed that by associating with you, you as a lawyer could apply for the fee and then share it with the paralegal. The Committee was of the opinion that, under the set of facts presented, the sharing of the fee would be prohibited by RPC 5.4(a). In addition, payment to the paralegal could not be contingent on the outcome of the matter. However, payment to the paralegal on an hourly or salary basis to perform the services would not be prohibited.