Reciprocity: Misunderstood Tool

Professional licensure is regulated by the states and territories in the United States. Though licensing requirements vary across these jurisdictions, there is typical recognition between states, where one state accepts (with some variability) the requirements for licensure set by another state. There is also an increasing number of states/territories who are joining licensure compacts. This blog explores reciprocity and compacts in professional licensure--the benefits and limitations.

Licensure is State Regulated

In the U.S., licenses are created and regulated by each state and territory. Licenses grant a person the legal authority to practice or work in a specific occupation or profession. Licensing requirements vary depending on the state, and may include education, exams, fees, and post-degree supervised experience. In most states, a licensing board or agency is created by law to develop and enforce the requirements for specific professions and occupations.

Because licensure is state-specific, whenever a licensed professional moves or wishes to work across state lines, they must seek licensure in the new state. Because requirements for a specific license can vary greatly between states, this can be a major hurdle and sometimes even end careers!

Reciprocity

A recent study estimates that 1 in 4 occupations now require a license in the U.S.! With so many occupations requiring a license, and so many mobile professionals, there is a need for states to recognize licenses from other states. This concept, generally known as reciprocity, creates a mechanism for states to mutually recognize and accept licenses granted by other states.

For most professions, reciprocity means that a board or agency will “waive” some of the requirements for licensure for someone who holds a full license from another state or territory with a specified number of years of experience with that license. For example, if someone has been working as a Licensed Clinical Social Worker (LCSW) for several years, their education, experience and exam requirements may be considered fulfilled by virtue of their having experience working as a LCSW in another state. This isn’t always the case though, as some states will still complete a thorough evaluation of education, exam, training and supervised experience to determine if the licensed applicant has satisfied each of the requirements, even if the licensed person has many years of experience. This can lead to experienced professionals needing to complete additional coursework, supervised experience or exams, to make up for any deficiencies in meeting the new state’s requirements. 

In short, reciprocity is not a guarantee that a licensed professional in one state or territory can qualify in another!

Compacts

The goal of licensure compacts is to get as many U.S. states/territories as possible (hopefully all) to agree to a common set of standards for licensure and/or recognition of each other’s standards. Each state legislature must adopt the compact through legislation. Model legislation is typically created by the professional association or organization. 

Compacts take reciprocity to the next level, generally authorizing professionals who are licensed in one state to work in another state, without applying for another license. This is particularly helpful for professions with shortages or traveling workforces, such as nursing.  Some compacts only include provisions for easing licensure requirements when a license applicant already holds a compact state license.

Several professional associations and other organizations have been working with lawmakers to create licensure compacts. Some examples are:

  • PSYPACT, for Licensed Psychologists, with 27 states and territories participating

  • Nurse Licensure Compact (NLC), for Registered Nurses, with 38 states and territories participating

  • Counseling Compact, for Licensed Professional Counselors/Mental Health Counselors, with 2 states and territories having adopted. The Compact will go into effect once enacted into law by 10 states, which could occur as early as 2022.

A deeper look at compacts, including interviews with two compact leaders, is available on the WCET-SAN website.

Special Populations

Military Affiliated

Military members and families frequently move, sometimes with very little notice of relocation. This causes great challenges for licensed professionals, as they will not be able to work in their new state until licensed. Within the past few years, some states and territories have passed laws that are aimed at streamlining the process for military members or their spouses. These provisions typically include some form of reciprocity for professionals who are already licensed. However, these measures typically don’t help students who must move prior to or shortly after graduating. 

Information about specific reciprocity or other measures that states have adopted can be found here:

Online Students

Reciprocity is also a consideration for graduates of online programs. Often, a university or college will encourage graduates to get licensed in the state where the institution is located first, and then apply through a reciprocity route in the state where they live/work. However, this isn’t always sufficient or necessary.

In some instances, holding a license in one state is not sufficient, as reciprocity is only available to licensed professionals who have 2 or more years of experience. Holding a license will not help these recent graduates in meeting their state’s requirements. Their only option is to satisfy that state’s particular education and exam requirements.  On the other hand, earning a license in one state is sometimes not necessary to earn a license in another state. Some states will recognize degree programs completed in other states that are equivalent to their state’s approved licensure programs. An applicant in these states would not need to present another state’s license, but simply apply for the license in the state they wish to work and demonstrate that education requirements are fulfilled through a transcript evaluation.

Looking to the Future

While there are some mechanisms to help ease the burden of professionals moving or working across state borders, reciprocity is not a complete solution. With more professions creating compacts, and more states joining those compacts, professional license requirements could start to look more similar across jurisdictions. This could ultimately create less hurdles for licensed professionals who are becoming increasingly more mobile each year, and for the special populations of students uniquely impacted by our system of state-regulated licensure.


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