Paying a lawyer a flat fee? What California requires
A 2026 State Bar ethics opinion confirms that flat legal fees are generally refundable if the work isn't finished, and that “nonrefundable” labels are off limits except for a true retainer.
Reviewed by Laurence S. Bezinover · Published
What changed
California lawyers may charge a flat fee for described services (Rules of Prof. Conduct, rule 1.5(e)). In Formal Opinion No. 2026-210, the State Bar's ethics committee concluded that calling a flat fee “nonrefundable” or “earned on receipt” violates rule 1.5(d), unless the payment is a true retainer that only secures the lawyer's availability. If the representation ends early, the lawyer must refund any unearned portion, even if the fee was deposited in the firm's operating account. The opinion is advisory.
Why it matters to clients
A flat fee, including a monthly fee for an agreed list of work, buys defined services. Clients may end the relationship at any time, and the agreement should say how much of the fee is earned at each stage. When a flat fee over $1,000 goes into a firm's operating account, the client must sign a written disclosure of their right to have it held in trust and to a refund of unearned amounts (rule 1.15(b)).
What to look for in a fee agreement
- A clear description of the services the flat or monthly fee covers.
- How the fee is earned (for example, by month or by milestone) and what happens if the engagement ends.
- No “nonrefundable” label unless the payment is a true retainer for availability only.
This briefing is general information about California law, not legal advice for your situation. Reading it does not create an attorney-client relationship.