Can a Washington lawyer employ a nonlawyer as a lobbyist, include the nonlawyer in a profit-sharing retirement plan, and let the nonlawyer hold stock in the law practice?

Plain-English summary

A lawyer asked about a relationship with a nonlawyer employed as a lobbyist. The committee was of the opinion that hiring a nonlawyer to participate in lobbying, and to appear before administrative agencies, is permitted under RPC 5.3 so long as the lawyer recognizes the supervisory authority and responsibility that rule imposes. It added that RPC 5.4(a)(3) permits the nonlawyer employee to be included in a retirement plan even when the plan is based in whole or in part on a profit-sharing arrangement.

The committee was also of the opinion that, under RPC 5.4, a nonlawyer may not own stock in a professional service corporation that engages in the practice of law.

Finally, the committee concluded that a nonlawyer employee may carry out duties including managerial authority and lobbying activities, so long as the nonlawyer does not have the right to direct or control the lawyer's professional judgment (RPC 5.4(d)(3)) and does not engage in the unauthorized practice of law (RPC 5.5(b)).

Currency note

This opinion was issued in 1992, before the Washington State Bar Association's adoption of the 2006 revisions to the 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 Treat this page as historical context, not current guidance.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: Could a lawyer employ a nonlawyer as a lobbyist who also appears before administrative agencies?

A: Yes. The committee concluded this was permitted under RPC 5.3 so long as the lawyer recognized the supervisory authority and responsibility that rule imposes.

Q: Could the nonlawyer employee share in a profit-based retirement plan?

A: Yes. The committee was of the opinion that RPC 5.4(a)(3) permits including a nonlawyer employee in a retirement plan even where the plan is based in whole or in part on a profit-sharing arrangement.

Q: Could the nonlawyer own stock in the law-practice corporation?

A: No. The committee was of the opinion that under RPC 5.4 a nonlawyer may not own stock in a professional service corporation that engages in the practice of law.

Q: How far could the nonlawyer's managerial role extend?

A: The committee said the nonlawyer could hold managerial authority and perform lobbying activities so long as the nonlawyer could not direct or control the lawyer's professional judgment (RPC 5.4(d)(3)) and did not engage in the unauthorized practice of law (RPC 5.5(b)).

Background and rules framework

The opinion applied the rules governing a lawyer's professional independence and the use of nonlawyer help: RPC 5.3 (responsibilities regarding nonlawyer assistants), RPC 5.4 (professional independence of a lawyer, including the bar on nonlawyer ownership and the limits on sharing fees), and RPC 5.5 (unauthorized practice of law). These correspond to ABA Model Rules 5.3, 5.4, and 5.5. The committee treated supervision and the lawyer's retained professional judgment as the dividing lines: permitted activity stayed on the lawyer-controlled side, while nonlawyer ownership of a law-practice corporation did not.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 5.3 (responsibilities regarding nonlawyer assistants); Washington RPC 5.3
• ABA Model Rule 5.4 (professional independence; nonlawyer ownership and fee division); Washington RPC 5.4, including 5.4(a)(3) and 5.4(d)(3)
• ABA Model Rule 5.5 (unauthorized practice of law); Washington RPC 5.5(b)

See also

• ABA Formal Op. 506: Nonlawyer Assistants & Intake
• ABA Formal Op. 464: Fee Division Across Jurisdictions

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=538

Original opinion text

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

Advisory Opinion: 1458
Year Issued: 1992
RPC(s): RPC 5.3; 5.4; 5.5
Subject: Employment of nonlawyer as lobbyist and to appear before administrative agencies; division of fees with nonlawyer

The Committee reviewed your inquiry concerning issues relating to your relationship with a nonlawyer employed as a lobbyist. The Committee was of the opinion that the hiring of a nonlawyer to participate in lobbying, as well as appearances before administrative agencies, is permitted under RPC 5.3 so long as the lawyer recognizes his supervisory authority and responsibility under that rule. Further, RPC 5.4(a)(3) permits the nonlawyer employee to be included in a retirement plan even though such plan is based in whole or in part on a profit sharing arrangement.

Further, the Committee was of the opinion that pursuant to RPC 5.4, a nonlawyer may not own stock in a professional service corporation, which engages in the practice of law.

Finally, the Committee is of the opinion that a nonlawyer employee may perform duties which would include managerial authority and performing of lobbying activities so long as the nonlawyer does not have the right to direct or control the professional judgment of the lawyer pursuant to RPC 5.4(d)(3), and does not engage in the unauthorized practice of law, as prohibited in RPC 5.5(b).