Impact of the Bar Exam on the Business Sector of Law

The legal landscape in the United States has been undergoing a significant shift, with the rise of diploma privilege becoming a topic of much discussion. This movement, which allows law graduates to enter the legal profession without passing the traditional bar exam, has been a point of contention for various stakeholders.

The president of Barbri, Mike Sims, initially considered lobbying against diploma privilege, fearing that its widespread adoption could have a detrimental effect on his company's business. However, the current situation presents an intriguing opportunity for business journalists to observe the success of this "control group" and report on its impact on the legal business.

Test-prep companies, including Barbri and Kaplan, are now planning to adapt to the potential persistence of diploma privilege. Local test-prep companies and tutors, particularly those in diploma-privilege jurisdictions, have had their bar review timelines disrupted or have lost some customers due to this change.

The concept of diploma privilege is not new. Some states have allowed graduates of certain local law schools to enter the legal profession without passing a bar examination. In recent times, jurisdictions such as Louisiana, Oregon, Utah, Washington D.C., and Washington state have granted diploma privilege to 2020 law school graduates, yielding an estimated 1,400 new lawyers as of January.

The bar exam, a fixture in the United States since before the country's inception, has been uprooted by COVID-19. The July 2020 edition of the bar exam was plunged into chaos by surging coronavirus cases, leading several jurisdictions to return to the old standby: diploma privilege.

The National Conference of Bar Examiners (NCBE), a 501(c)(c)3 organization with yearly profits in the millions, leads the bar exam. Interestingly, the NCBE's president, Judith Gundersen, is herself a beneficiary of diploma privilege, meaning she was allowed to practice law without taking the bar exam.

The American Bar Association (ABA) argues that a widespread written bar exam could improve the quality of lawyers around the country. However, others view the rise in diploma privilege as a sustained movement, while others see it as a passing fad forced by extenuating circumstances.

Some firms in Washington state expressed reservations about hiring diploma-privileged lawyers. Yet, Efrain Hudnell, co-founder of United for Diplom Privilege, said in August that the new lawyers who didn't have to take the bar exam can serve as a "control group." This could provide valuable insights into the long-term impact of diploma privilege on the legal profession.

As of 2020, diploma privilege has fallen by the wayside in every state but Wisconsin. The future of diploma privilege remains uncertain, with ongoing debates about its merits and drawbacks. The bar exam, a cornerstone of the legal profession for centuries, may never be the same again.

Impact of the Bar Exam on the Business Sector of Law