Cecily Zamora
Lawyers may want to practice in multiple states for a variety of reasons, including the desire for more freedom and opportunity for growth in their practice, and the ability to move around as needed without worrying about how they'll work in a new state. While it is simpler to practice in one state, it is possible to practice in multiple states, and it is becoming easier with the availability of cloud-based law practice management software. To do so, lawyers must meet the requirements of each jurisdiction, which may include passing the bar exam in multiple states, or taking the Uniform Bar Exam (UBE), which may qualify you to seek a license in up to thirty-nine states.
| Characteristics | Values |
|---|---|
| Can you practice law in multiple states? | Yes, as long as you meet the requirements of each jurisdiction. |
| What are the benefits of practicing law in multiple states? | Increased flexibility, more opportunities to grow your legal practice, expanded career opportunities, access to more clients, and increased client reach. |
| What are the challenges of practicing law in multiple states? | More expensive, potential marketing challenges, confusion with legal statutes, administrative work on trust accounts and CLEs, and the need to comply with each state's rules of professional conduct. |
| How can you become licensed to practice law in multiple states? | By taking the bar exam in each state, through reciprocity or admission pro hac vice, or by taking the Uniform Bar Exam (UBE), which is accepted in 39 states. |
| What are the requirements for reciprocity? | Most states require you to practice law for a certain amount of time (usually at least five years) before you can apply for reciprocity, and not all states offer reciprocity with all other states. |
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What You'll Learn
Multi-state practice: the benefits
Multi-state practice offers several benefits to lawyers, including increased flexibility, enhanced professional flexibility, and expanded career opportunities.
One significant advantage is the ability to serve a larger client base. By practising in multiple states, lawyers can take on cases from neighbouring states, especially if their niche practice is in a state with low population density. This can significantly boost their business and provide more opportunities for growth. Additionally, some clients may require representation in multiple states and would prefer to work with a single attorney who can handle their legal needs across different jurisdictions.
Another benefit is the flexibility it offers lawyers in terms of mobility and career options. Being licensed in multiple states allows lawyers to move around as needed without worrying about their license restrictions. This is especially advantageous in situations where personal or professional circumstances require relocation to another state.
Furthermore, with the increasing shift towards online work and the use of cloud-based law practice management software, remote work for attorneys has become more common. This makes it easier for multi-state lawyers to manage their practice across different states and collaborate with clients and colleagues remotely.
While there are challenges and additional costs associated with maintaining multiple state licenses, the benefits of multi-state practice can outweigh these drawbacks. The Uniform Bar Exam (UBE), which allows licensure in up to thirty-nine states, has made it more accessible for lawyers to expand their practice across state lines.
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Ethical considerations
The ethical aspects of multi-state practice are influenced by the Model Rules enacted by the American Bar Association (ABA). Managing partners and supervising attorneys must be aware of the applicable UPL rules in each jurisdiction, as these determine whether an attorney can legally practise law remotely. For example, Connecticut does not consider it UPL when a lawyer is physically present in the state and "remotely engages in the practice of law as authorized under the laws of another United States jurisdiction in which that lawyer is admitted."
To ensure ethical compliance, attorneys should be informed about the UPL rules in the state they reside in and recognize that not all states allow remote work. ABA Model Rule 5.1(a) mandates that supervising attorneys ensure all lawyers in the firm conform to the Rules of Professional Conduct. Managing attorneys, therefore, bear the ethical responsibility to address any ethical issues that may arise from remote work arrangements.
Additionally, each state has distinct laws and regulations. Multi-state practitioners must stay current with various legal codes, which can be challenging but also enhances their legal expertise. They must also be mindful of the substantial financial investment required for licensing in multiple states, including significant fees for bar admission and Continuing Legal Education (CLE) requirements.
Furthermore, ethical considerations extend to trust accounts. While some states allow multi-state practitioners to use another state's trust account, most states require the setup of a specific trust account, which can be challenging to find a bank that can effectively manage.
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The Uniform Bar Exam (UBE)
The UBE is composed of three sections: the Multistate Bar Examination (MBE), the Multistate Essay Examination (MEE), and the Multistate Performance Test (MPT). The first, the MBE, is a 200-question, multiple-choice exam administered over a six-hour period on two dates per year: the last Wednesday of February and the last Wednesday of July. The MBE is used to assess an examinee's ability to apply fundamental legal principles, exercise legal reasoning, and analyse fact patterns. The MEE consists of six 30-minute questions that are administered on the Tuesday before the last Wednesday in February and July of each year. The MPT is also administered on the Tuesday before the last Wednesday in February and July of each year. The MPT is weighted at 20% by jurisdictions that administer the UBE.
The UBE is accepted in 39 states, including Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, and the District of Columbia. It is important to note that while the UBE is a standardised exam, the user jurisdictions retain the right to independently decide who may sit for the exam, who will be admitted to practice, and whether to accept MBE scores from previous examinations. Additionally, some jurisdictions that use the UBE may require applicants to complete additional educational components or exams.
The UBE offers a more convenient path to becoming a multi-state lawyer. Rather than taking multiple bar exams, attorneys can take the UBE and then seek licensure in multiple jurisdictions that have adopted the UBE. This flexibility can be advantageous, especially for attorneys who may need to move to another state or practice in multiple states due to personal or professional reasons.
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Reciprocity and CLEs
Practising law in multiple states is possible, but it requires meeting the requirements of each jurisdiction. One of the key challenges of practising law in multiple states is complying with the Continuing Legal Education (CLE) requirements of each state. CLEs are ongoing training programmes designed to ensure lawyers stay updated on legal practices, ethics, and developments. While CLE requirements vary by state, they typically include a minimum number of CLE hours per reporting period, which may be one or two years. Each hour of CLE is generally considered a CLE credit.
Attorneys admitted in multiple jurisdictions should understand the CLE requirements of each jurisdiction and craft a CLE plan that fits their goals. While CLE requirements are minimum standards imposed by state bar associations, lawyers can benefit from the ongoing training provided by CLE courses. CLE credits can be obtained through various methods, including attendance at online courses, webinars, and legal conferences. Some states may also offer reciprocity, allowing attorneys to earn credits from both jurisdictions for one course.
Reciprocity is a critical concept for multi-state legal practitioners. It refers to the recognition of credits earned in one jurisdiction when practising in another. For example, New Jersey will accept credits for courses that are accredited in another mandatory CLE jurisdiction, provided the type of credit/course is not excluded by the BCLE Regulations. Attorneys relying on reciprocity must still ensure they meet the requirements of the jurisdiction in which they are practising. Not all states offer reciprocity, and the regulations may vary, so it is important to check with each state.
In addition to CLE requirements, multi-state lawyers must also navigate trust account requirements. Some states may allow piggybacking on another state's trust account, while others will require a separate trust account for each state. Finding a bank that can effectively handle trust accounts in multiple states can be challenging.
Overall, becoming a multi-state lawyer offers increased flexibility, enhanced professional flexibility, and a larger client base. While it may be administratively challenging, it is a viable option for attorneys seeking to expand their practice and serve clients across multiple jurisdictions.
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Trust accounts
Attorneys have a fiduciary duty to protect their clients' financial interests and maintain public trust in the legal profession. Trust accounts are instrumental in fulfilling this duty, as they ensure that client funds are secure and clearly accounted for at all times. Lawyers must diligently manage these accounts, adhering to stringent regulations set by state bars, to avoid legal repercussions and uphold their professional responsibility.
One of the challenges of trust account management is the complexity of keeping track of multiple client accounts. Lawyers must ensure that each client's funds are accurately accounted for, with a full paper trail of statements, to prevent accidental misuse or improper transfers. This meticulous record-keeping is essential for maintaining transparency and accountability.
For multi-state lawyers, the challenge of managing trust accounts is amplified. Most states require multi-state practitioners to set up a trust account specific to that state, making it crucial to find a bank that understands the intricacies of lawyer trust accounts and can handle accounts in multiple states. This process can be arduous, as banks may impose monthly service fees or fail to comprehend the difference between an IOLTA account and a general business checking account.
To facilitate trust account management, lawyers can leverage technology, such as legal-specific trust accounting software. These tools provide features like three-way reconciliation, comprehensive reporting, and safeguards for trust transactions, offering much-needed assistance in navigating the complexities of trust accounting.
In summary, trust accounts are essential in legal practice to safeguard client funds and maintain transparency. Lawyers must diligently manage these accounts, adhering to strict regulations, to uphold their fiduciary duties and maintain the integrity of the legal profession. For multi-state practitioners, the challenge of trust account management is intensified, underscoring the importance of selecting a bank that can effectively handle the intricacies of these accounts across multiple states.
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Frequently asked questions
Yes, as long as you meet the requirements of each jurisdiction.
Multi-state licensure gives lawyers more freedom and opportunity for growth in their practice. It also allows them to expand their client base and handle more diverse legal issues.
Practicing law in multiple states can be more expensive, pose marketing challenges, and potentially cause confusion with legal statutes.
