Colleagues —

I'm exploring a compensation arrangement for a new business and would appreciate input from anyone familiar with New York Rule of Professional Conduct 5.4(a)(3) and its intersection with employment law.

Specifically, I'm considering employing an attorney who is not admitted in New York, with compensation tied to the profitability and performance of the practice.

I have two principal questions:

  1. Profit sharing / minimum wage: Can an employee's entire compensation consist of participation in the firm's profits under Rule 5.4(a)(3), or must the employee also receive a base salary satisfying applicable minimum wage requirements? We anticipate the profit participation would substantially exceed minimum wage, but obviously that cannot be guaranteed.

  2. Per-case compensation: Could the employee alternatively, or additionally, receive a flat $500 for each case successfully settled? Would that arrangement be permissible under Rule 5.4(a)(3) and applicable ethical and employment rules?

I'm particularly interested in how to structure an arrangement that accomplishes these economic objectives while complying with both New York's professional responsibility rules and employment law.

I'm happy to pay for a consultation with someone knowledgeable in this area who can help us arrive at a practical, compliant solution.

If anyone has experience with these issues or can recommend an attorney who does, I'd greatly appreciate hearing from you.

Many thanks!

Best,

Jeb Singer 
Managing Partner 
J. Singer Law Group, PLLC
1 Liberty Plaza, 23rd Floor 
New York, NY 10006 
C:  917-806-5832 
jsinger@jsingerlawgroup.com 
http://www.singerlawgroup.com  
 
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