Advisory Opinion:
1998
Year Issued:
2002
RPC(s):
RPC 5.6(a)
Subject:
employment agreement, restriction of right to practice law after leaving law firm
A clause in the employment agreement of the inquiring lawyer’s firm provides that partners/shareholders of the firm will not solicit, hire, or recruit lawyers at the firm for a period of years after termination of employment. There is no pending litigation regarding this clause, but the inquiring lawyer, who is responsible for the firm’s compliance with the Rules of Professional Conduct, wishes to know whether the clause violates the Rules. The inquiring lawyer has cited the committee, ABA Informal Opinion 1417 (1978) and Jacob v Norris, McLaughlin & Marcus, 607 A.2d 142, 128 N.J. 10 (1992).
An employment agreement which prevents a partner/shareholder who is leaving the firm from soliciting, hiring, or recruiting other lawyers in the firm does violate RPC 5.6(a). It constitutes a restriction on the right to practice of the partner/shareholder who is leaving and the right to practice of the other lawyers of the firm. The provision also impacts consumers of legal services, because it can prevent formation of teams of lawyers that might best represent those consumers.
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