Ezel / Ethics Opinions / WSBA

Can a lawyer pay a paraprofessional employee a salary calculated from the money received in escrow closings?

Short answer The committee was of the opinion that RPC 5.4(a) prohibits paying a paraprofessional employee a salary based on money received in an escrow closing, because such payment would constitute fee splitting with a nonlawyer.
Bar
WSBA
Issued
1991

Apply this to your situation

This page answers the general question as of 1991. Ask about yours and see what the current Washington Rules of Professional Conduct say for your facts, with citations.

Disclaimer: Advisory only. Not binding precedent.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official ethics opinion. The original opinion (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The committee was of the opinion that RPC 5.4(a) would prohibit a lawyer from paying a paraprofessional employee a salary based upon money received in an escrow closing, because such a payment would constitute fee splitting with a nonlawyer.

Currency note

This opinion was issued in 1991, 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 Treat this page as historical context, not current guidance.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 paralegal's salary be tied to escrow-closing receipts?

A: Under this 1991 opinion, no; the committee was of the opinion that RPC 5.4(a) prohibits it because such a payment would constitute fee splitting with a nonlawyer.

Q: Why is a receipts-based salary treated as fee splitting?

A: The committee viewed paying a nonlawyer a salary measured by money received in closings as sharing legal fees with a nonlawyer, which RPC 5.4(a) prohibits.

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, the subject the Model Rules place in Rule 5.4. The committee treated compensation calculated from escrow-closing receipts as a forbidden split rather than ordinary salary.

Citations and references

Rules of Professional Conduct:

  • ABA Model Rule 5.4 (sharing fees with a nonlawyer)
  • Washington RPC 5.4(a)

See also

Source

Original opinion text

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

The Committee was of the opinion that RPC 5.4(a) would prohibit a lawyer from paying a paraprofessional employee a salary based upon money received in an escrow closing as such a payment would constitute fee splitting with a nonlawyer.

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