NYC Bar Warns Firms To Tread Lightly With HR Outsourcing

Law360, February 19, 2015

NYC Bar Warns Firms To Tread Lightly With HR Outsourcing

Law firms looking to staff out their human resource work to professional employer organizations face a number of potential ethical landmines, but a new set of guidelines released by the New York City Bar Association outlines four steps firms can take to steer clear of trouble. The NYCBA says firms can use PEOs – which essentially allow companies to outsource their payroll, human resources, workers’ compensation and other employee management needs – so long as they are vigilant about the potential for such arrangements to compromise independent professional judgment, confidentiality obligations, conflict of interest protections and prohibitions against sharing fees with nonlawyers.

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