Can Lawyers Give a Referral Fee to a Non-Lawyer?

The ABA's Rules of Professional Conduct prohibit payment of most referral fees to non-lawyers.

The American Bar Association (ABA) Model Rules of Professional Conduct and state bar associations prohibit attorneys from paying referral fees to non-lawyers. However, there are several exceptions.

ABA Model Rules of Professional Conduct

According to Rule 5.4(a) of the ABA Model Rules of Professional Conduct, lawyers can't pay referral fees to a non-lawyer in most cases. Website affiliate referral fees are generally not prohibited so long as payment of the fees is not dependent on whether a client retains the attorney or firm. Non-lawyers cannot share in legal fees paid to a lawyer.

Former or Deceased Law Partners

ABA Rules 5.4(a)(1) and (2) allow a non-lawyer to be paid by an attorney or law firm on behalf of a former partner or former associate for a "reasonable time." A probate estate or specified individuals can be paid referral fees earned by a deceased lawyer.

Employee Compensation or Retirement Plans

A lawyer or firm is allowed to pay compensation to an employee of the attorney where the non-lawyer is a member of an established compensation or retirement plan. This is allowed "even though the plan is based in whole or in part on a profit-sharing arrangement."

Court-Awarded Legal Fees from Non-Profit Organizations

ABA Rule 5.4(a)(4) allows payment of a share of legal fees from court-awarded fees to a non-profit organization who hired, retained or recommended employment of the attorney in the legal matter.

References

• American Bar Association (ABA): Model Rules of Professional Conduct