Facts
A law firm proposes to enter into an arrangement with an employee leasing company owned by nonlawyers to permit members of the law firm and its employees to obtain better health and other insurance benefits at a cost savings to the law firm.
The leasing company will enter into similar arrangements with other law firms and parties in an adverse position to clients of the law firm.
The leasing company will hire, fire, discipline and otherwise deal with employees leased to the law firm only as directed to do so by the law firm. The salaries to be paid to the employees leased to a law firm will be determined by that law firm. Each pay period, the law firm will pay the leasing company an amount sufficient to pay all salaries, taxes and benefits, plus an amount agreed upon as a fee for the
services provided by the leasing company.
The leasing company will have no involvement in, relationship to, or control over the conduct or affairs of the law firm's practice. Clients of a law firm will not be made aware of the arrangement between the law firm and the leasing company. Fees to be charged by a law firm to its clients will be determined by that law firm.
A law firm will have no control over the activities of the leasing company, except as directly related to those persons employed by the leasing company and leased to a law firm.
Questions
1. 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-lawyer owned entity?
3. Does such a leasing arrangement cause a potential conflict of interest prohibited by the disciplinary rules?