US relaxes rules on foreign in-house lawyers

Lawyers who qualified outside of the US are to be allowed to work as in-house counsel at US companies in all 50 states, the American Bar Association (ABA) has ruled.

US: foreign lawyers rule change

A vote last week lifted the rule which had prevented foreign lawyers from working in corporate legal departments which existed in all but seven US states. However, the lawyers will only be able to practise with ‘limited authority’, reports the Memphis Business Journal.

Floodgates

The Law Society Gazette reports that the change was a response to the rapid increase in foreign companies with operations in the US.
The ABA rebuffed suggestions that the reforms will ‘open the floodgates’ to foreign lawyers, as they are still unable to advise on US law without consulting an authorised US lawyer.
‘Foreign lawyers are already engaged as in-house counsel within the US, but are subject to relatively little oversight,’ said the ABA commission. ‘Adding foreign lawyers enables organisational clients to meet their needs with counsel of their choice, while ensuring foreign lawyers are identifiable, subject to monitoring, and accountable.’

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