FactsA law firm proposes to enter into an arrangement with an employee leasing company owned by nonlawyersto permit members of the law firm and its employees to obtain better health and other insurancebenefits at a cost savings to the law firm.The leasing company will enter into similar arrangements with other law firms and parties in an adverseposition to clients of the law firm.The leasing company will hire, fire, discipline and otherwise deal with employees leased to the law firmonly as directed to do so by the law firm. The salaries to be paid to the employees leased to a law firmwill be determined by that law firm. Each pay period, the law firm will pay the leasing company anamount sufficient to pay all salaries, taxes and benefits, plus an amount agreed upon as a fee for theservices provided by the leasing company.The leasing company will have no involvement in, relationship to, or control over the conduct or affairsof the law firm’s practice. Clients of a law firm will not be made aware of the arrangement between thelaw firm and the leasing company. Fees to be charged by a law firm to its clients will be determined bythat law firm.A law firm will have no control over the activities of the leasing company, except as directly related tothose persons employed by the leasing company and leased to a law firm.Questions1. Does such a leasing arrangement constitute an impermissible division or sharing of fees with nonlawyers?2. Does such a leasing arrangement constitute the unauthorized practice of law through a non-lawyerowned entity?3. Does such a leasing arrangement cause a potential conflict of interest prohibited by the disciplinaryrules?
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